When it comes to rewards credit cards, many prefer a cash back rewards card over points or miles because of the simplicity. With cash, you can obviously use the rewards anyway you want to. With that in mind, we thought a comparison of two of the most popular cash back cards available was in order: the Chase Freedom(SM) MasterCard card and the American Express Blue Card. Depending on your card usage habits, you might want to consider one of these two cards as your primary rebate earnings card. If you can’t settle on just one card, you could use a combination of them both for full rebate earning potential. This article will highlight the offers of both cards and help you determine which card you should consider based on your spending habits.
Comparison Chart: Chase Freedom(SM) MasterCard vs. Amex Blue Cash
| Chase Freedom(SM) MasterCard | Amex Blue Cash | |
|---|---|---|
| Top Cash Back Reward | 3% on categories that change throughout the year. | 5% on gas, groceries, and drugstores after you've spent a total of $6,500 on the card each year. Before that these categories of purchases earn 1% cash back. |
| Other Cash Back Reward | 1% on everything else | 0.5% on everything else up to $6,500, then 1.25% |
| Annual Fee | $0 | $0 |
| 0% Intro Rate Offers | 0% intro on purchases for 6 months, and 0% intro on balance transfers for 12 months | 0% for 6 months on purchases |
| Official Website | Chase Freedom(SM) MasterCard | Amex Blue Cash |
The Chase Freedom(SM) MasterCard allows you to earn on every purchase. There are no spending tiers and no caps on the amount you can earn. The card offers 0% on purchases for 6 months, and 0% for 12 months on balance transfers. After the introductory period the rate changes to a variable rate which is also based in part on your on your credit history.
Card Details
- 1% Cash Back: The Chase Freedom(SM) MasterCard offers You a 1% rebate for each $1 of net purchases. You will earn an additional 1% rebate for each $1 of eligible airfare net purchases made online through the program booking tool. You do not earn rebates on balance transfers, cash advances, cash-like charges such as travelers checks, foreign currency, and money orders, any checks that are used to access your account, overdraft advances, interest, unauthorized or fraudulent charges, or fees of any kind, including fees for products that protect or insure the balances of your account. There is no maximum number of rebates that you can accumulate in the program.
- 5% Cash Back: The Chase Freedom(SM) MasterCard also offers 5% cash back offers in popular categories like gas, home improvement and department stores. You will be eligible for quarterly bonus rewards offers as long as your account is not in default under, and/or you have not violated, the terms of your Cardmember Agreement and Rewards Program Rules.
- Bonus Points: You can earn up to 20 bonus points when you shop the Ultimate Rewards Mall. To use the Ultimate Rewards Mall, you must log into your account at chase.com. The Complete Ultimate Rewards Mall details will be provided online prior to shopping.
American Express Blue Cash Back Card
Amex Blue Cash is one of the few 5% cash back cards. Here’s how it works. For each 12 billing cycle period, purchases up to a total of $6,500 earn 1.0% if they are for groceries, drug stores, or gas, and 0.5% on everything else. Once you’ve spent a total of $6,500 on the card, the cash back rewards jump to 5% for groceries, drug stores, and gas, and 1.25% on everything else. the card also offers 0% APR for 6 months with no annual fee. After the intro period the APR is determined for each billing period by adding 13.99%, 15.99% or 17.99% to the Prime Rate.
Card Details
- 1% Cash Back Offer: For the first $6,500 of Eligible Purchases, the rebate is 1.0% for Everyday Purchases and 0.5% for all other Eligible Purchases. “Everyday Purchases” are purchases made at the following categories of U.S. merchants that are not departments of superstores or warehouse clubs: supermarkets, drugstores, and automobile gasoline stations. All rebates are awarded annually after 12 consecutive billing periods.
- 5% Cash Back Offer: The American Express Blue Card allows you to earn up to 5% cash back at supermarkets, gas stations, and drugstores. The way it works is once you’ve spent a total of $6,500 on the card, the cash back rewards jump to 5% for groceries, drug stores, and gas, and 1.25% on everything else.
- Receive Rebate: Your rebate will appear as a credit on your statement one month following your Card anniversary date.
Which Card Is Best For You?
To answer this question you need to know about how much you are going to spend each month – knowing this will help you determine which card is best for you. I have broken this into two categories: Less than $1,500 a month or more than $1,500 a month.
- Less Than $1,500: If you expect to spend less than $1,500 a month the Chase Freedom(SM) MasterCard is an excellent choice. Under the Chase Freedom(SM) MasterCard dynamic cash rewards program, you’ll earn 3% cash back (standard 1% plus a bonus 2% rebate) for all eligible purchases made in popular rotating categories, including gas, home improvement, and department stores. For everything else, you still earn 1% cash back. There is also a cap on the bonus rebate amount you can earn per month – $12, which equates to $600 worth of net purchases in the bonus categories. When you reach $600 for the month, the remaining bonus category purchases will only earn the 1% base rebate. There is also an opportunity for a bonus rebate once you accumulate $200 in total rewards. Chase will tack on a $50 bonus rebate on top of your $200 – for a total of $250. Chase Freedom(SM) MasterCard is also currently offering an instant $50 sign-up bonus after you make your first purchase.
- More Than $1,500: If you expect to spend more than $1,500 a month, the Amex Blue Cash credit card becomes a strong choice because it offers a tiered rebate program, based on your purchases to date. For the first $6,500 you earn in the rebate year, you’ll earn 1% back on purchases for groceries, gas, and drugs, and 0.5% on everything else. However once you spend over $6,500 for the year, you can earn 5% cash back on all your every day purchases at supermarkets, gas stations and drugstores, and 1.5% cash back on all other purchases.
To get more information about the Chase Freedom(SM) MasterCard card and to access an online application, visit the official Chase Freedom(SM) MasterCard website.
To get more information about the American Express Blue Cash card and to access an online application, visit the official Amex Blue Cash website.
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