May 21, 2022

American Express Cash Magnet Card Review

Comparison With Other Cards

Annual fee: Neither card charges an annual fee.

Rewards: Chase Freedom Unlimited earns 5% cash back on grocery store purchases on up to $12,000 spent the first year, 5% on travel purchased through Chase Ultimate Rewards, 3% on dining and drugstore purchases and 1.5% on all other purchases. With the American Express Cash Magnet Card, all purchases earn 1.5% cash back.

Welcome offer: With the American Express Cash Magnet Card, you can earn a $150 bonus if you spend at least $1,000 or more in purchases with your new Card within the first 3 months. With the Chase Freedom Unlimited, you earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. The American Express Cash Magnet Card offers 0% APR on purchases for 15 months after you open your account. The Chase Freedom Unlimited’s 0% APR offer is also for 15 months, but it includes both purchases and balance transfers.

Benefits: Chase Freedom Unlimited offers benefits such as purchase protection, extended warranty protection, trip cancellation and interruption insurance, and travel and emergency assistance. American Express Cash Magnet Card offers car rental loss and damage insurance and the Global Assist Hotline.

Annual fee: Both cards charge no annual fee.

Rewards: The base rewards rate for the Blue Cash Everyday Card is 1% for all purchases, but it also offers 3% cash back for up to $6,000 spent annually at U.S. supermarkets and 2% at U.S. gas stations and select U.S. department stores. With the American Express Cash Magnet Card, you earn 1.5% cash back on every purchase.

Welcome offer: With the American Express Cash Magnet Card, you can earn a $150 bonus if you spend at least $1,000 or more in purchases with your new Card within the first 3 months. The Blue Cash Everyday Card from American Express offers back in the form of a statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. Both cards offer 0% APR on purchases for 15 months after you open your account.

Benefits: The Blue Cash Everyday Card from American Express and American Express Cash Magnet Card offer many of the same benefits, such as purchase protection, car rental loss and damage insurance and Global Assist Hotline.

How to Earn Rewards With the American Express Cash Magnet Card

The American Express Cash Magnet Card offers 1.5% cash back on every purchase, making it a good choice for people who don’t spend a lot in any one area of their budget or who don’t want to spend much time on maximizing their rewards. With no annual fee, the card doesn’t force you to do any math to make sure you’re getting enough value to hold onto it, although that’s assuming you don’t carry a balance after the introductory 0% APR promotional period ends.

When you first get the card, you’ll have the chance to earn a $150 bonus in the form of a statement credit. To qualify, you’ll need to spend at least $1,000 or more in purchases with your new Card within the first 3 months. Be sure to have a plan to use your card enough during that time to earn the bonus.

How to Redeem Rewards With the American Express Cash Magnet Card

You can redeem your cash back as a statement credit, but you’ll need to have at least $25 in rewards dollars in your account before you redeem. Some other cash back credit cards allow you to get cash in the form of direct deposit or a paper check, giving you more flexibility. Also, keep in mind that you can’t use cash back rewards to make your minimum payment.

What Is the American Express Cash Magnet Card’s APR?

The card offers an introductory 0% APR on purchases for 15 months, after which the APR jumps to 13.99% – 23.99% Variable, based on your creditworthiness. The promotional period can give you plenty of time to finance a large purchase. After it’s over, though, the card’s APR is slightly higher than average, according to U.S. News research.

The card also comes with a feature called Pay It Plan It, which allows you to pay for certain large purchases over time with a fixed monthly fee rather than interest.

What Are the Fees Associated With the American Express Cash Magnet Card?

  • Annual fee: The American Express Cash Magnet Card charges no annual fee.
  • Cash advance fee: The card charges $10 or 5% of the amount for each cash advance, whichever is greater.
  • Foreign transaction fee: There is a 2.7% charge for each foreign transaction.
  • Late and returned payment: The American Express Cash Magnet Card charges up to $40 for late and returned payments.
  • Overlimit fee: There is no charge for going over the limit.

Should You Get the American Express Cash Magnet Card?

  • Want a simple cash back rewards program.
  • Need to finance a large purchase.
  • Prioritize having no annual fee.
  • Aren’t concerned with the card’s limited cash back redemption options.

For rates and fees of the American Express Cash Magnet Card, please click here.

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