American Express Cash Magnet® Review: A New Card, But Is It Worth Applying For?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer.

Editor's Rating

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An excellent cash back credit card, particularly for anyone interested in short-term rewards.
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Editor's Rating

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An excellent cash back credit card, particularly for anyone interested in short-term rewards.
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Citi is an advertising partner

We consider the American Express Cash Magnet® Card – $150 Welcome Offer to be one of the top cards for earning cash back rewards. Note, the card isn't great for everyone and you may be ineligible for the welcome bonus that makes the card worth applying for. The American Express Cash Magnet® Card – $150 Welcome Offer is a great addition to the American Express card portfolio, as it was previously missing a card with a solid all-around rewards rate.

American Express Cash Magnet® Card – $150 Welcome Offer Review: A Worthwhile Credit Card

The American Express Cash Magnet® Card – $150 Welcome Offer comes with a solid welcome bonuses currently available for an no annual fee card (See Rates & Fees), at a total of $150. Although, American Express recently rolled out some changes to who it awards bonuses to, so you'll want to make sure you qualify before considering this card.

Furthermore, the American Express Cash Magnet® Card – $150 Welcome Offer is easy to use, as cardholders earn Unlimited 1.5% Cash Back on your purchases, meaning there is no need to worry about spending categories. This can be great for users who want a higher rewards rate than the standard 1% without having to put too much thought into their spending. Simplicity comes with its downsides as well, as there are other available cards, such as the Citi® Double Cash Card – 18 month BT offer, that come equipped with a greater rewards rate.

One of the major downsides of American Express Cash Magnet® Card – $150 Welcome Offer is its foreign transaction fee of 2.7% of each transaction after conversion to US dollars. (See Rates & Fees). The fee negates any cash back you may earn while spending abroad. For example, if your foreign transaction is $100 total, you would be hit with a $2.70 fee, which is greater than the $1.50 cash back you'd earn. International travelers should consider applying for the Capital One® Quicksilver® Cash Rewards Credit Card instead.

Bottom Line: The American Express Cash Magnet® Card – $150 Welcome Offer makes for a great everyday card and its bonus makes it an excellent pick for short-term rewards for those able to meet the spending requirements.

American Express Cash Magnet® Card – $150 Welcome Offer Benefits and Features

American Express Cash Magnet® Card – $150 Welcome Offer users earn Unlimited 1.5% Cash Back on your purchases. The cash back that cardholders receive when they use the American Express Cash Magnet® Card – $150 Welcome Offer is received in the form of Reward Dollars. These Reward Dollars can be redeemed for statement credits, gift cards and merchandise. Currently, there is no annual fee associated with the American Express Cash Magnet® Card – $150 Welcome Offer.

American Express Cash Magnet®

$0

12.99%-23.99% Variable

Good/Excellent

  • Earn a $150 statement credit after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.
  • Unlimited 1.5% Cash Back on your purchases.
  • Cash Back is received in the form of Reward Dollars that can be redeemed for statement credits.
  • Low intro APR: 0% for 15 months on purchases and balance transfers from the date of account opening, then a variable rate, currently 12.99% to 23.99%.
  • 0% introductory plan fee on each purchase moved into a plan during the first 15 months from the date of account opening with Plan It®, a feature that lets you split up big purchases into monthly payments with a fixed fee. After that, your plan fee will be up to 1.17% of each purchase moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase.
  • Don't wait for your Card in the mail. Start earning cash back before your Card even arrives, if eligible for Instant Card Number.
  • No Annual Fee.
  • Terms Apply.
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New cardholders are eligible to earn a 0% intro APR on purchases and balance transfers for 15 months.

In addition to the benefits listed above, the American Express Cash Magnet® Card – $150 Welcome Offer comes equipped with all the features that come standard with American Express cards. For example, the American Express Cash Magnet® Card – $150 Welcome Offer offers cardholders an extended warranty when eligible purchases are charged on the card. Furthermore, cardholders get a complimentary membership to ShopRunner, which offers free two-day shipping on eligible items through their network of more than 140 stores.

Do You Qualify for a Welcome Bonus From American Express?

If you've opened and closed a lot of credit cards in the past, you may be ineligible to receive the welcome bonus on the American Express Cash Magnet® Card – $150 Welcome Offer. Recently, American Express has added language to a disclaimer which states that it may consider the number of cards you've opened or closed as well as other factors before making a decision on whether you're eligible for the welcome bonus. Thankfully, American Express alerts you to whether you qualify for the welcome bonus before it pulls your credit report. The alert allows you to cancel your application if you're deemed ineligible. This means applicants should be careful when applying for the American Express Cash Magnet® Card – $150 Welcome Offer and pay close attention during the application process to see whether they're eligible for the welcome bonus on the card.

For rates and fees of the American Express Cash Magnet® Card – $150 Welcome Offer, please click here.

How Does the American Express Cash Magnet® Card – $150 Welcome Offer Stack Up to Other Cards?

In order to determine whether the American Express Cash Magnet® Card – $150 Welcome Offer is a good card for you, you should compare it against other top cards on the market. Ultimately, whether you should apply for this card or not will depend on your spending habits.

The American Express Cash Magnet® Card – $150 Welcome Offer vs. the Capital One® Quicksilver® Cash Rewards Credit Card

Capital One® Quicksilver® Cash Rewards Credit Card
This product is not available through ValuePenguin.
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Both of these credit cards are very similar, namely they both offer a welcome offer of $150 provided you meet certain spending requirements. If you're a light-to-moderate spender, the Capital One® Quicksilver® Cash Rewards Credit Card can be a great card. Other similarities with the American Express Cash Magnet® Card – $150 Welcome Offer include the fact that both cards have a $0 annual fee and the same cash back rewards rate.

As a side note, anyone who travels abroad often should consider the Capital One® Quicksilver® Cash Rewards Credit Card over the American Express Cash Magnet® Card – $150 Welcome Offer, as the latter carries a foreign transaction fee. This foreign transaction fee will effectively negate any rewards you earn while you're traveling abroad.

Consider this card if …

  • You travel internationally often.

The American Express Cash Magnet® Card – $150 Welcome Offer vs. the Citi® Double Cash Card – 18 month BT offer

  • On Citi's Secure Website
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Prospective cardholders who don't mind forgoing short-term rewards for better long-term value should consider applying for the Citi® Double Cash Card – 18 month BT offer over the American Express Cash Magnet® Card – $150 Welcome Offer. That's because the Citi® Double Cash Card – 18 month BT offer allows cardholders to Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay. Excluding any bonuses, the Citi® Double Cash Card – 18 month BT offer will always outperform the American Express Cash Magnet® Card – $150 Welcome Offer in terms of rewards rate, regardless of how much you spend.

Consider this card if …

  • You'd rather have long-term value over short-term rewards.

The American Express Cash Magnet® Card – $150 Welcome Offer vs. the Blue Cash Everyday® Card from American Express

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Rewards maximizers and those who spend a lot of money at supermarkets, gas stations and department stores may find the Blue Cash Everyday® Card from American Express to be a better fit over the American Express Cash Magnet® Card – $150 Welcome Offer. That's because the Blue Cash Everyday® Card from American Express offers cardholders 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%), 2% cash back at U.S. gas stations and select U.S. department stores. The card also offers 1% cash back on purchases that fall outside of these respective categories.

The great thing about both of these cards is that they pair well, meaning cardholders can apply for both at no cost detriment since neither has an annual fee. For example, you could use the Blue Cash Everyday® Card from American Express exclusively at the places where the card earns over 1% cash back and then use the American Express Cash Magnet® Card – $150 Welcome Offer everywhere else. Combined, the two cards will offer much better value than either card could provide on its own.

Consider this card if …

  • You spend a lot of money at supermarkets, gas stations and department stores.
  • You're OK with carrying two cards if it means getting a higher rewards rate.

For rates and fees of the Blue Cash Everyday® Card from American Express, please click here.

The information related to the Citi® Double Cash Card – 18 month BT offer has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.

Joe Resendiz

Joe Resendiz is a former investment banking analyst for Goldman Sachs, where he covered public sector and infrastructure financing. During his time on Wall Street, Joe worked closely with the debt capital markets team, which allowed him to gain unique insights into the credit market. Joe is currently a research analyst who covers credit cards and the payments industry. He earned a bachelor’s degree from the University of Texas at Austin, where he majored in finance.

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The products that appear on this site may be from companies from which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). ValuePenguin does not include all financial institutions or all products offered available in the marketplace.

How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).

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