Wells Fargo Active Cash Card vs. the Blue Cash Preferred Card from American Express

The Wells Fargo Active Cash® Card is one of the best cards for general spending, while the Blue Cash Preferred® Card from American Express offers one of the highest cash-back rates available for purchases made at U.S. supermarkets and for select U.S. streaming subscriptions. 

While the two cards go great together, if you have to choose between them, pick the Active Cash. It may not be as rewarding, depending on how much you spend on U.S. supermarket, select U.S. streaming subscriptions and U.S. gas station purchases, but it has no annual fee and also comes with an easier-to-obtain welcome bonus and a longer introductory APR offer. 

If you’re in need of a credit card that earns more rewards on U.S. gas stations and groceries at U.S. supermarkets, however, choose the Blue Cash Preferred. While it carries an ongoing annual fee, the rewards rate is so high your return can essentially quickly cover it. The best choice is to get both cards and use them together — the Blue Cash Preferred on groceries, gas, transit and streaming, and the Active Cash on other purchases.

Intro OfferEarn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months

APR19.24%, 24.24%, or 29.24% Variable APR

Intro Purchase APR0% intro APR for 15 months from account opening

Recommended Credit Excellent, Good

Reward Rates

• Earn unlimited 2% cash rewards on purchases

Annual Fee$0

Intro Balance Transfer APR0% intro APR for 15 months from account opening on qualifying balance transfers

Balance Transfer APR19.24%, 24.24%, or 29.24% Variable APR

Balance Transfer Fee up to 5%; min: $5

Foreign Transaction Fees 3%

Penalty APR None

• Earn unlimited 2% cash rewards on purchases

 

Intro OfferEarn a $250 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.

APR18.24%-29.24% Variable

Intro Purchase APR0% on purchases for 12 months

Recommended Credit Excellent, Good

Reward Rates

• 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
• 6% Cash Back on select U.S. streaming subscriptions
• 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
• 3% Cash Back at U.S. gas stations
• 1% Cash Back on other purchases

Annual Fee$0 intro annual fee for the first year, then $95.

Intro Balance Transfer APR0% on balance transfers for 12 months

Balance Transfer APR18.24%-29.24% Variable

Balance Transfer Fee Either $5 or 3% of the amount of each transfer, whichever is greater.

Late Payment Fee Up to $40

Foreign Transaction Fees 2.7% of each transaction after conversion to US dollars.

Penalty APR 29.99% Variable

• 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
• 6% Cash Back on select U.S. streaming subscriptions
• 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
• 3% Cash Back at U.S. gas stations
• 1% Cash Back on other purchases

Comparing rewards programs

Winner: Blue Cash Preferred

The Blue Cash Preferred earns more rewards than the Active Cash at U.S. supermarkets, select U.S. streaming subscriptions, at U.S. gas stations and on transit. If you’re shopping elsewhere, however, the Active Cash will earn more.

The Blue Cash Preferred earns:

• 6% cash back (on the first $6,000 spent each year, then 1%) at U.S. supermarkets
• 6% on select U.S. streaming services
• 3% at U.S. gas stations
• 3% on transit including taxis/rideshare, parking, tolls, trains, buses and more
• 1% for other purchases
• Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit

The Active Cash earns:

• Unlimited 2% cash rewards on purchases

Here are a few simulated examples of yearly spending with both cards:

However, the Blue Cash Preferred does carry a $95 annual fee ($0 intro annual fee for the first year). Subtracting that from the total rewards — $268 — would make the yearly return $173 after the first year, which is still greater than what you’d earn using just the Active Cash for your spending.

However, the Blue Cash Preferred becomes less valuable the less you spend on groceries, streaming, gas, and transit. Before getting the card, try calculating the potential rewards based on your own spending habits to decide whether it’s worthwhile for you.

The best strategy here would be to use both cards in tandem, considering the Active Cash doesn’t require an annual fee. Use the Blue Cash Preferred where it earns the most and the Active Cash for everything else.

Welcome offer

Winner: Active Cash

Take a look at both credit card’s welcome offers:

• Blue Cash Preferred: Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first six months.
• Active Cash: Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first three months.

The Blue Cash Preferred offers the higher bonus, but you’ll also have to spend $2,000 more to reach it. However, you’ll have six months compared to the Active Cash’s three-month limit. That breaks down to an average spend of $500 per month for the Blue Cash Preferred and $334 per month for the Active Cash. 

Considering the Blue Cash Preferred’s welcome offer is only $50 higher than what the Active Cash provides for over double the spending threshold, the better bonus is that of the Active Cash card. But, if you can meet the spending requirements with your normal spending, the Blue Cash Preferred’s bonus is more lucrative. 

Introductory APR offer

Winner: Active Cash

While both credit cards feature an introductory APR offer, the Active Cash provides more time to either finance a large purchase or pay down a transferred balance without accruing interest. Take a look at each card’s intro offer:

• Blue Cash Preferred: 0% intro APR for purchases and balance transfers for 12 months from account opening (then 18.24%-29.24% variable).
• Active Cash: 0% intro APR for purchases and qualifying balance transfers for 15 months from account opening (then 19.24%, 24.24%, or 29.24% variable)

While neither card is exactly ideal for a balance transfer (better balance transfer cards offer introductory 0% APR periods of up to 21 months), if you want to pay down some credit card debt, the Active Cash provides a longer intro APR window.

Additional card perks

Winner: Blue Cash Preferred

Here are the additional card perks that come with both credit cards:

Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

The Blue Cash Preferred offers far more benefits than the Active Cash, which makes sense considering it carries an annual fee. If you can take full advantage of the Equinox+ and Disney Bundle credits, the value of those statement credits alone can essentially offset the annual fee.

However, the Active Cash does offer a good number of perks for a credit card without an annual fee.

Annual fee

Winner: Active Cash

The Blue Cash Preferred has a $95 annual fee ($0 intro annual fee for the first year) whereas the Active Cash has none. Looking at the annual fee alone, the Active Cash is the winner. 

However, in exchange for the Blue Cash Preferred’s annual fee, you earn one of the highest cash-back rates at U.S. supermarkets and for select U.S. streaming subscriptions, plus greater rewards for U.S. gas stations and for transit purchases. It also translates to more card perks.

If you spend $1,600 yearly in the Blue Cash Preferred’s highest rewards categories — U.S. supermarkets and select U.S. streaming subscriptions — you’ll earn $96 in rewards, enough to essentially offset the annual fee.

According to the U.S Bureau of Labor Statistics, households spent upwards of $5,000 on groceries in 2021. With that in mind, it shouldn’t be a difficult threshold for most people to meet. The 3% cash back on U.S. gas stations and transit also helps offset the cost.

The bottom line

If you’re simply comparing each card by its features, the Active Cash card is more flexible and less expensive while still offering a good introductory APR offer, welcome bonus and competitive rewards. It’s the one to go with if you’re on a budget and looking to earn a solid rewards rate across your spending.

However, if you spend a lot on U.S. supermarkets, select U.S. streaming subscriptions, U.S. gas stations or transit, choose the Blue Cash Preferred. Given the high rewards rates for those categories, the cash back you earn from your everyday spending can quickly cover the $95 annual fee ($0 intro annual fee for the first year). The card also provides a solid selection of additional benefits that, if used to their full potential, can have a value greater than the annual fee.

The best strategy here would be to get both credit cards. Since the Active Cash doesn’t have an annual fee and earns a flat-rate for your purchases, it pairs well with an annual fee card that earns greater rewards in specific categories. Use the Blue Cash Preferred for your grocery, streaming, gas and transit spending and the Active Cash for other purchases to maximize your returns.

FAQs

For rates and fees of the Blue Cash Preferred Card from American Express, click here

*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

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