American Express Cash Magnet Card review

Sometimes, simplicity brings out the best in life. The American Express Cash Magnet® Card (terms apply) offers a straightforward solution for earning cash back on credit card purchases. With a flat rate of 1.5% cash back on all purchases, you don’t need to worry about juggling different cards for different types of purchases or tracking bonus categories.

While the American Express Cash Magnet Card doesn’t boast flashy perks, it provides valuable assistance for travelers in tight spots. From secondary car rental loss and damage insurance¹ to access to a global assist hotline², you can feel supported during your journeys.

However, considering the market competition, there are almost a dozen other cards that offer 2% cash back on all spending. For pure earning potential, these alternatives might be more appealing.

American Express Cash Magnet Card basics

The annual fee for this card is $0. Upon spending $2,000 within the first six months of card membership, you can earn a $200 back via statement credit as a welcome bonus. For all purchases, you will receive 1.5% unlimited cash back as rewards. The regular APR ranges from 18.99% to 29.99% variable. If you make purchases or balance transfers within 60 days of account opening, you can enjoy a 0% introductory APR for 15 months. After the intro period, the APR will vary from 18.99% to 29.99%.

For balance transfers, you’ll be charged either $5 or 3% of the transfer amount (whichever is greater) as a fee. Some perks and benefits of this card include car rental loss and damage insurance, a global assist hotline, and a ShopRunner membership. If you’re wondering about pre-approval, the card offers a pre-approval tool. A good to excellent credit score is recommended to qualify for this card.

American Express Cash Magnet Card other details

American Express Cash Magnet Card rewards

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The American Express Cash Magnet Card allows you to earn 1.5% cash back on all purchases, and there’s no limit to how much you can earn. If you have additional cardmembers on your account, their eligible purchases also earn you cash back. Your cash-back rewards come in the form of Rewards Dollars, which can be redeemed as a statement credit. There’s no minimum redemption amount required, and terms apply.

When you first open an American Express Cash Magnet Card, you have the opportunity to earn additional cash back through the welcome bonus. By spending $2,000 within the first six months of card membership, you can earn $200 back via a statement credit.

American Express Cash Magnet rewards potential

We use government data and publicly available information to estimate the income and expenses of a typical U.S. household interested in this card. On average, such a household earns $84,352 annually and has expenses of $25,087 that can be charged to a credit card. When using the American Express Cash Magnet Card for spending that amount, they can earn approximately $376.31 per year in cash back rewards due to the 1.5% cash-back rate.

American Express Cash Magnet APR

When you open an American Express Cash Magnet Card, you’ll be eligible for a 15-month 0% introductory APR on both purchases and balance transfers. The condition is that you must request the balance transfer within 60 days of opening the account. Once this introductory period concludes, the APR will vary from 18.99% to 29.99%, depending on your individual circumstances. Your credit score at the time of application will play a significant role in determining your specific APR.

For balance transfers, keep in mind that there will be a fee. The fee can either be $5 or 3% of the transfer amount, whichever is greater.

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American Express Cash Magnet Card pros

  • Earn rewards: Get an unlimited 1.5% back on your purchases.
  • Auto rental insurance coverage: The American Express Cash Magnet Card offers secondary car rental loss and damage insurance. You’re covered for up to $75,000 for theft or damage to most rental vehicles. Just use the card to pay for the rental and decline the rental company’s coverage at the counter. Keep in mind that this insurance is secondary and doesn’t include liability coverage. Also, not all vehicle types or rentals are covered, and there may be geographic restrictions.
  • Low intro APR offer: Take advantage of the card’s introductory offer to save money on interest.
  • Access to Amex perks: Enjoy various perks as an American Express cardholder. These include Global Assist Hotline referrals, American Express Experiences, and a complimentary ShopRunner membership.

American Express Cash Magnet Card cons

  • The card lacks flexibility in redeeming earnings, as it only allows cash back through statement credits. Unlike some American Express cards, there are no options for earning Membership Rewards points for travel or transfers to airline and hotel partners.
  • One drawback is the absence of bonus spending categories, limiting the chance to earn higher rewards in specific areas of spending. For example, unlike other credit cards, there are no elevated rates for categories like grocery stores, restaurants, or gas stations.
  • Comparatively, there are other flat-rate cash-back cards that offer a more attractive option. Some of these cards allow you to earn a flat rate of 2% on all spending, making them a more appealing choice.
  • Additionally, this card imposes a foreign transaction fee of 2.7% on any international purchase, which could be a significant disadvantage for frequent travelers or those who make purchases from foreign merchants
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How the American Express Cash Magnet Card compares to other rewards cards

  1. American Express Cash Magnet Card and Chase Freedom Flex℠ have different rewards structures.
  2. The Freedom Flex card offers 5% cash back on rotating categories (up to $1,500) when activated, and 1% on other purchases.
  3. On the other hand, the Citi® Double Cash Card is also a flat-rate cash back card, earning up to 2% cash back on all purchases.
  4. The Double Cash card has a 0% intro APR on balance transfers for 18 months (with a 3% intro balance transfer fee).
  5. In comparison, the American Express Cash Magnet Card lacks travel benefits, while the American Express® Gold Card provides attractive rewards and perks.
  6. The Gold Card offers 4 Membership Rewards points per dollar on dining, 4 points per dollar at U.S. supermarkets (up to $25,000 per year), and 3 points per dollar on flights booked directly or through amextravel.com.
  7. Additionally, the Gold Card has no foreign transaction fees and provides various credits, such as $10 monthly dining credit (up to $120 annually) and up to $120 Uber Cash credit per year (with enrollment required).

Should you get the American Express Cash Magnet Card?

The American Express Cash Magnet Card is a suitable choice for cash-back rewards seekers because it has no annual fee. Its straightforward earning structure appeals to many, as it offers the same rewards rate for all purchases.

However, the American Express Cash Magnet Card may not be the best option when compared to a card that earns 2% cash back. In comparison, it falls short in simplicity and value. Alternatively, other credit cards might provide additional benefits like flexible rewards, travel transfer partners, and no foreign transaction fees, catering better to individual needs.

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