What the Bread Cashback American Express Card does
The Bread Cashback American Express Card returns a percentage of what you spend back to you as cash rewards. You earn 1% cash back on most purchases and 3% cash back on dining and travel. The card has no annual fee, which means you are not charged just for holding it.
This is a co-branded card issued by American Express in partnership with Bread Financial, a lending company. It is designed for people who want rewards without paying an annual membership cost. The cash back you earn sits in your account and you can redeem it as a statement credit, a deposit to a bank account, or a check.
Like all credit cards, the Bread Cashback American Express works by borrowing money from the card issuer when you make a purchase. You receive a bill each month and can choose to pay it in full or carry a balance. If you carry a balance, interest charges explore.
Key Takeaways
- The card earns 1% cash back on most purchases and 3% on dining and travel with no annual fee.
- You need to pay your balance in full each month to avoid interest charges that can exceed the value of your rewards.
- American Express cards are accepted at fewer merchants than Visa or Mastercard, so check where you shop before opening the account.
- Your credit score affects whether you are approved and what interest rate you receive if you carry a balance.
- Cash back rewards have no expiration date, so you can let them accumulate if you do not need them when ready.
How much the card actually costs you
The Bread Cashback American Express has no annual fee, but that does not mean it costs nothing to use. The real cost comes from interest charges if you do not pay your full balance each month. American Express does not publish a single interest rate — the rate you receive depends on your credit score and credit history. Rates typically range from around 16% to 27% annually, but your actual rate could fall outside that range.
If you carry a $1,000 balance at 20% annual interest and make only minimum payments, you will pay roughly $200 in interest charges over the course of a year. That wipes out the cash back you earned on $20,000 in spending. For the card to save you money, you need to pay your full statement balance every month, without exception.
There are also foreign transaction fees if you use the card outside the United States. American Express charges 2% of the transaction amount when you spend in another country or in a foreign currency. If you travel internationally or shop from overseas retailers, those fees add up quickly.
Where you can and cannot use this card
American Express cards work at fewer places than Visa or Mastercard. While American Express is accepted at most large retailers, restaurants, and online merchants, some smaller businesses, gas stations, and regional chains do not take it. Before you open this account, check whether the stores and restaurants where you spend most of your money accept American Express.
You can check acceptance by visiting the American Express merchant locator on their website or by calling the customer service number on the back of the card. Some merchants accept American Express only for purchases above a certain amount, or they may charge a higher fee to the business when you use it, which can affect whether they encourage you to use it.
Online, American Express is widely accepted at major retailers like Amazon, Target, and Walmart, as well as at most travel and dining websites. However, some smaller online merchants and international sites may not accept it.
What your credit score needs to be
American Express does not publish a minimum credit score requirement for the Bread Cashback card, but based on how the card is marketed, you typically need a credit score of 650 or higher to be approved. If your score is below 650, you may still be approved, but it is less likely. If you are approved with a lower score, you may receive a higher interest rate or a lower credit limit.
Your credit score is a three-digit number that reflects your history of borrowing and repaying money. It is calculated based on how much debt you carry, whether you pay bills on time, how long you have had credit accounts open, and how many times you have applied for new credit recently. You can check your own credit score for free through services like Credit Karma, AnnualCreditReport.com, or your bank's website.
explore for this card will result in a hard inquiry on your credit report, which temporarily lowers your score by a few points. If you are approved, opening the account will also lower your score slightly because you now have a new account with a zero balance. These effects are temporary and your score typically recovers within a few months if you pay on time.
How to decide if this card makes sense for you
The Bread Cashback American Express makes sense if you spend money regularly at merchants that accept American Express, you can pay your full balance every month, and you want cash back without paying an annual fee. If you meet all three of those conditions, the 1% and 3% cash back rates will put money back in your pocket over time.
The card does not make sense if you carry a balance from month to month. The interest you pay will be far larger than any cash back you earn. It also does not make sense if American Express is not accepted at the places where you spend most of your money, because you will end up using a different card for most purchases and earning no rewards.
If you travel internationally or shop from foreign websites regularly, the 2% foreign transaction fee will eat into your rewards. In that case, look for a card with no foreign transaction fees, even if the cash back rate is lower.
How to open the account and what happens next
You can open a Bread Cashback American Express account online through the American Express website or by calling their customer service line. The process takes about 10 minutes and asks for your name, address, Social Security number, income, and employment information. American Express will check your credit report and give you a decision within minutes in most cases.
If you are approved, your card will arrive in the mail within 7 to 10 business days. You can set up it online or by phone as soon as it arrives. Your first statement will come 30 days after your first purchase, and you will have at least 21 days to pay it before interest charges begin.
Once you have the card, cash back starts accumulating when ready on every purchase. You do not need to register for rewards or take any action — it happens automatically. You can check your cash back balance anytime by logging into your American Express account online or through their mobile app.
Other no-annual-fee cash back cards to consider
The Bread Cashback American Express is not the only card that offers cash back without an annual fee. The Chase Freedom Unlimited card earns 1.5% cash back on all purchases with no annual fee and is accepted everywhere Visa is accepted, which is more places than American Express. The Capital One SavorOne card earns 3% cash back on dining and entertainment and 1% on all other purchases, also with no annual fee.
The key difference between these cards and the Bread Cashback American Express is acceptance. If you shop at places that do not take American Express, a Visa or Mastercard will be more useful. However, if you shop primarily at merchants that accept American Express and you want higher cash back on dining and travel, the Bread card may be the better choice.
Compare the cards by looking at where you spend the most money and which card offers the highest cash back rate in those categories. Then check whether that card is accepted at those merchants. The card that earns the most rewards is only valuable if you can actually use it.
Frequently Asked Questions
Can I transfer my cash back to another card or bank account?
Yes. You can redeem your cash back as a statement credit, which reduces your bill, or you can request a direct deposit to your bank account. You can also request a check. The process takes a few business days through the American Express website or app.
What happens to my cash back if I close the card?
Your cash back does not expire and does not disappear if you close the account. You can redeem it before you close the card, or you can redeem it after. American Express will hold your rewards for a period of time even after the account is closed, though the exact timeframe varies.
Do I have to use the card every month to keep it open?
No. American Express does not close accounts for inactivity on this card. You can open it, use it occasionally, and keep it open indefinitely. However, if you do not use it for an extended period, American Express may eventually close it, though this is rare.
What is the credit limit and can I increase it?
Your starting credit limit depends on your credit score and income. American Express will tell you your limit when you are approved. You can request an increase after you have had the card for at least six months and have made on-time payments. You can request an increase through the American Express website or by calling customer service.
Does this card help me build credit?
Yes, if you use it responsibly. Making on-time payments and keeping your balance low relative to your credit limit will improve your credit score over time. Carrying a high balance or missing payments will damage your score. The card reports to all three credit bureaus, so your payment history will show up on your credit report.