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

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

An excellent cash back credit card, particularly for anyone interested in short-term rewards.
Editor's Rating: 4.0/5.0

Editor's Rating

4.0/5.0

American Express recently launched the American Express Cash Magnet™ Card and instantly we consider it one of the top cards for earning cash back rewards. However, the card isn't great for everyone and you may be ineligible for the bonus that makes the card worth applying for. The American Express Cash Magnet™ Card 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 Review: A Worthwhile New Credit Card

The best thing about the American Express Cash Magnet™ Card is that it comes equipped with one of the top bonuses currently available for no annual fee cards, at a total of $250. 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 card is easy to use, as cardholders earn 1.5% cash back on every purchase, 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, that come equipped with a greater rewards rate.

One of the major downsides of this card is its 2.7% foreign transaction fee, which 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 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 Benefits and Features

American Express Cash Magnet™ Card users earn 1.5% unlimited cash back on all purchases. The cash back that cardholders receive when they use the American Express Cash Magnet™ Card 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.

American Express Cash Magnet™ Card
Annual Fee
$0
Purchase APR
14.99%-25.99% Variable
Credit Needed Excellent/Good
Details
  • Earn up to $250 back. Here's how: 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.
  • Plus, earn an additional $100 statement credit after you spend an additional $6,500 in purchases within your first 12 months.
  • Unlimited 1.5% Cash Back on your purchases.
  • Cash Back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
  • Low intro APR: 0% for 15 months on purchases and balance transfers, then a variable rate, currently 14.99% to 25.99%.
  • With Plan It℠, you can set up a monthly payment plan for large purchases with a fixed monthly fee and no interest charges, all with the same rewards and protections you expect from American Express.
  • Over 1.5 million more places in the U.S. started accepting American Express® Cards in 2017.
  • No Annual Fee.
  • Terms Apply.
  • See Rates & Fees

New cardholders are eligible to earn $150 back after spending $1,000 or more in purchases on the card within their first three months of card membership. In addition to this, cardholders can earn a $100 statement credit after spending an additional $6,500 ($7,500 total) in purchases within the first 12 months of opening their accounts.

In addition to the benefits listed above, the American Express Cash Magnet™ Card comes equipped with all the features that come standard with American Express cards. For example, the American Express Cash Magnet™ Card 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 bonus on the American Express Cash Magnet™ Card. 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 offer. 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 and pay close attention during the application process to see whether they're eligible for the welcome bonus on the card.

How Does the American Express Cash Magnet™ Card Stack Up to Other Cards?

In order to determine whether the American Express Cash Magnet™ Card 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 vs. the Capital One® Quicksilver® Cash Rewards Credit Card

Simply put, cardholders who plan to spend $7,500 or more on their credit card in one year should opt for the American Express Cash Magnet™ Card over the Capital One® Quicksilver® Cash Rewards Credit Card due to the $250 bonus that cardholders can earn. While the Capital One® Quicksilver® Cash Rewards Credit Card also has a new cardmember offer, it's only a $150 cash bonus, which is earned once you spend $500 on purchases within the first three months of account opening. Regardless, if you're a light-to-moderate spender, the Capital One® Quicksilver® Cash Rewards Credit Card can be a great card. It has many similarities with the American Express Cash Magnet™ Card, namely a $0 annual fee and a 1.5% 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, as the latter carries a foreign transaction fee of 2.7%. This foreign transaction fee will effectively negate any rewards you earn while you're traveling abroad.

Consider this card if …

  • You plan to spend less than $7,500 on the card.
  • You travel internationally often.

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

Prospective cardholders who don't mind forgoing short-term rewards for better long-term value should consider applying for the Citi® Double Cash Card over the American Express Cash Magnet™ Card. That's because the Citi® Double Cash Card offers cardholders 1% cash back on all purchases and then another 1% cash back once you pay for those purchases, effectively a 2% cash back rate. Excluding any bonuses, the Citi® Double Cash Card will always outperform the American Express Cash Magnet™ Card 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 vs. the Blue Cash Everyday® Card from American Express

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. 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 everywhere else to receive 1.5% cash back. 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.

Comments and Questions

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Info about the following cards: Premier Rewards Gold Card from American Express, Delta Reserve® Credit Card from American Express, Platinum Delta SkyMiles® Credit Card from American Express, Hilton Honors Surpass® Credit Card, American Express® Blue Sky, American Express® Green Card, The Amex EveryDay® Preferred Credit Card from American Express, The Amex EveryDay® Credit Card from American Express, The Plenti® Credit Card from Amex, Blue from American Express®, Platinum Card® from American Express Exclusively for Mercedes-Benz, Bluebird, Centurion® Card from American Express, Hilton Honors American Express Aspire Card, Starwood Preferred Guest® American Express Luxury Card, and Amazon Business American Express Card has been collected independently by ValuePenguin. The issuer did not provide the details, nor is it responsible for their accuracy.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through the credit card issuer Affiliate Program.

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.

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® Card 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).