American Express Cash Magnet® Review

It seems like every credit card on the market these days has a different reward structure and complex formulas that determine how and where points are earned.

For people interested in a straightforward rewards card with no annual fee, the American Express Cash Magnet® has a lot to offer.

American Express Cash Magnet® Pros and Cons

Pros:

• No Annual Fee
• Competitive Bonus Offers
• Introductory APR Period
• A Rewards Card with Simplicity

Cons:

• Not Everyone Qualifies for the Bonus Offers
• Foreign Transaction Fees
• Minimum $25 Redemption

What Is the American Express Cash Magnet® Credit Card?

The American Express Cash Magnet® card is a credit card with a $0 annual fee offering rewards simplicity by giving flat-rate cash back rewards for all purchases.

How Does the American Express Cash Magnet® Work?

The American Express Cash Magnet® card offers unlimited 1.5% cashback on all purchases made on the card regardless of where they’re made.

The card also has an introductory 0% APR for 15 months on new purchases.

Earning Rewards

The American Express Cash Magnet® is about as straightforward as they come. Cardholders earn 1.5% cashback on all purchases.

Redeeming Rewards

There are not a lot of options when it comes to redeeming rewards from the American Express Cash Magnet®.

First, cardholders wanting to use their rewards must wait until they hit a $25 Reward Dollars redemption minimum.

Redemptions are only made in the form of statement credits on the American Express Cash Magnet® card.

These statement credits may not be used to offset the minimum monthly payment.

Occasionally, AMEX will offer redemption on merchandise or gift cards, but these offerings are few and far between.

American Express Cash Magnet® Features and Benefits

The bread and butter offering of the American Express Cash Magnet® card is the unlimited 1.5% cashback on all purchases.

The $0 annual fee and introductory 0% APR for 15 months on purchases are pretty attractive too.

Additionally, AMEX has several standard benefits like extended warranties, car rental insurance, and 24/7 global assist that make the card a solid choice for those looking for cashback rewards.

Generous Welcome Bonus 😊

Cardholders who spend $1000 on purchases in the first three months are eligible to receive a $150 statement credit.

This available statement credit on only $1000 of purchases and with a $0 annual fee is a real bargain.

Not everyone is eligible for this bonus, though. AMEX reserves the right to deny cardholders the bonus if they have opened and closed several cards in the past.

0% Introductory Rates

Purchases made on the American Express Cash Magnet® card accrue zero interest in the first 15 months after opening the card.

After the 15 months are up, the purchases begin accruing standard variable interest rates associated with the card.

Car Rental Loss & Damage Insurance

Cars that are rented using the American Express Cash Magnet® card are eligible for Damage and Theft insurance when the cardholder declines the coverage at the time of renting the car.

There is quite a bit of fine print, as with any insurance, so cardholders are encouraged to take a look at the policy closely before depending on it for coverage.

Global Assist^® Hotline

Global Assist Hotline is available to all US AMEX Cardmembers. It is designed to help cardholders during every step of their trip, from preparations to arriving back home- and everything in between.

Cardholders can travel with the assurance that if something goes wrong, like lost passports or medical emergencies, there is someone who will help them.

There is no need to sign up, and American Express Cash Magnet® holders have the number right on the back of their card.

How Does the American Express Cash Magnet® Stack Up?

#1. The American Express Cash Magnet® Card vs the Citi® Double Cash Card

On the surface, the American Express Cash Magnet® card and the Citi® Double Cash Card have a lot in common.

Both cards are straightforward cashback cards great for people who want unfussy rewards and no annual fee. Where the cards start to differentiate themselves is in the introductory offers and rates.

The Citi® Double Cash Card offers 2% unlimited cash back on purchases, whereas the American Express Cash Magnet® only offers 1.5%.

There is currently no introductory offer on the Citi® Double Cash Card, and then American Express Cash Magnet® gives $150 in free money statement credit when cardholders spend $1000 in the first 3 months.

Finally, the American Express Cash Magnet® card has an introductory 0% APR for 15 months on new purchases, but the Citi® Double Cash Card offers 0% APR for 18 months on balance transfers.

The upfront better deal is the American Express Cash Magnet® card, but users hoping for the highest cash rewards in the long term will probably prefer the Citi® Double Cash Card.

#2. The American Express Cash Magnet® Card vs the Blue Cash Everyday® Card from American Express

The Blue Cash Everyday® Card from American Express is a cash-back rewards card, but it is not a simple cash-back rewards card.

The American Express Cash Magnet® card offers 1.5% cashback on all purchases, period. The Blue Cash Everyday® card has tiers of cashback offerings.

Cardholders earn up to 3% cashback on grocery purchases (up to $6,000), 2% on gas stations and some department stores, and 1% on everything else.

The Blue Cash Everyday® Card from American Express also has no annual fee, has an introductory 0% APR on new purchases for the first 15 months, and offers a cash back bonus.

The Blue Cash Everyday® $200 bonus for $1000 spent in the first 3 months is slightly higher than the American Express Cash Magnet® card.

The decision about which card is better really comes down to how uncomplicated cardholders want their experience to be.

The American Express Cash Magnet® card offers 1.5% on everything, and that’s it, whereas cardholders of the Blue Cash Everyday still need to manage spending tiers.

#3. American Express Cash Magnet® Card vs Chase Freedom Flex℠℠

Both the American Express Cash Magnet® card and the Chase Freedom Flex℠ card have zero annual fees and offer cashback rewards.

The Chase Freedom card’s bonus handily beats out the American Express Cash Magnet® card Card bonus. Cardholders only need to spend $500 in the first three months for a $200 bonus.

Unlike the American Express Cash Magnet® card, which offers 1.5% cashback rain or shine, the Chase Freedom Flex℠ card has tiers of cashback based on spending targets and categories.

The Chase Freedom Flex℠ card offers up to 5% cash back on travel purchases and purchases up to $1,500 in select categories.

There are also 3% rewards on restaurant and drugstore purchases. All other purchases earn 1% cashback.

The Chase Freedom Flex℠ card has a lot of potential for max rewards, but it’s not uncomplicated and requires active management because cardholders must select the categories where they’d like to receive the bonus rewards.

Frequently Asked Questions

Is American Express Cash Magnet® a Good Credit Card?

The American Express Cash Magnet® card is definitely a great card for people who don’t want to have to put too much energy into figuring out rewards and do their spending in the US.

In addition to its $0 annual fee and generous bonus offer, the American Express Cash Magnet® card also comes with all the benefits standard to AMEX cards that make them stand out in a crowd.

Unlike some of the other AMEX cards, the American Express Cash Magnet® card does have foreign transaction fees of 2.7%.

American Express cards are not accepted at all retailers, but the American Express Cash Magnet® card is a good card for everyday spending.

What Credit Score Do You Need for American Express Cash Magnet® card?

The minimum credit score you need to be approved for the American Express Cash Magnet® card hovers right around 700.

A 700-credit score puts you at the upper end of the good range of credit scores. Typically, AMEX requires good to excellent credit for approval.

Is American Express Cash Magnet® card a Metal Credit Card?

The American Express Cash Magnet® card is a lovely blue, but it is not metal. Metal cards are typically reserved for cards that are considered “luxury” cards, and the Cash Magnet card- while good in its own right- is not considered a luxury card.

Bottom Line: American Express Cash Magnet® Credit Card Review

The American Express Cash Magnet® card’s simple approach to rewards might be appealing for some.

However, there are plenty of cards out there that offer higher rates on their straightforward cash back and also carry no annual fee.

Setting the American Express Cash Magnet® card apart from these other cards is the introductory 0% APR for 15 months.

This card is probably best suited for someone who would like to take advantage of that low introductory APR and finds that a more important feature than the cashback because there are certainly better cashback cards on the market.