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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 Benefits and Features
- How Does the American Express Cash Magnet™ Card Stack Up?
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.
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.