Cash Magnet Review: Is 1.5% Attractive Enough?
This article contains references to products from our partners. We receive compensation if you apply or shop through links in our content. You help support CreditDonkey by reading our website and using our links.
American Express Cash Magnet® Card gives you unlimited 1.5% cash back on your purchases. Is it a good card? Read on to see how it stacks up.
![]() | |||
![]() | |||
Overall Score | 4.0 | ||
Rewards | 4.5 | ||
Interest Rates | 3.0 | ||
Fees | 4.0 | ||
Benefits | 4.5 | ||
Pros and Cons
- 1.5% unlimited cash back
- Intro APR
- No annual fee
- Not a Visa/MasterCard
- Foreign transaction fee
Bottom Line
Great all-around cashback card
With 1.5% cash back, a welcome bonus, long intro APR, and no annual fee (See Rates & Fees), the new AMEX credit card is looking very attractive.
For a long time, AMEX has lacked a good all-around cashback card. So the Cash Magnet is an exciting addition to the American Express lineup.
But there are some downsides, so it may not be for everyone.
And how does it compare to other popular cashback cards?
Keep reading.
Who the Cash Magnet Is Good For
- If you want a simple cash back card. This card gives you 1.5% cash back on purchases. You don't have to keep track of different spending categories.
- If you have varied spending. You tend to spread your spending between gas, groceries, movies, shopping, dining out, etc.
- If you're planning on making large purchases. This card has an intro APR (See Rates & Fees), so you'll have time to pay off large purchases interest-free.
Check out the Cash Magnet's latest promotion.
Why We Like the Cash Magnet
![]() |
© CreditDonkey |
- Earn a bonus. 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.
- Get unlimited 1.5% cash back on all purchases. You get automatic 1.5% cash back on purchases. Your cash back is earned as Reward Dollars, which can be redeemed for statement credit, gift cards, or merchandise at top-brand retailers.
You can redeem for statement credit whenever you have accumulated $25 in rewards.
- Long intro APR on purchases and balance transfers. There is a 0% introductory APR for the first 15 months on both purchases and balance transfers (then a 14.49% - 25.49% Variable APR) (See Rates & Fees). This is great if you have large purchases coming up or if you have debt on another credit card.
- No annual fee.
- Payment plan options. There is a "Plan It" feature that allows you to set up a payment plan for individual large purchases of $100 or more. You can create up to 10 active payment plans. There is a fixed fee that's charged each month the plan is active.
This is a good feature if you need more time to pay off a large purchase.
Other AMEX Benefits
You'll get standard AMEX benefits as well, including:
- Purchase Protection. You can be reimbursed up to $1,000 if an eligible purchase is damaged or stolen within 120 days from purchase, up to $50,000 per year. (For residents of New York, Indiana, Guam, Puerto Rico, and Northern Mariana Islands coverage duration is 90 days.)
- ShopRunner. Get a complimentary membership to ShopRunner. You get free, 2-day shipping on eligible purchases with over 140 retailers.
Reasons to Consider Other Cards
There are some downsides to this card. See if any of these reasons is a deal breaker for you.
- You may not be eligible for the bonus. AMEX may consider how many AMEX cards you have opened and closed (as well as other factors) to determine whether you're eligible for the welcome offer. They will let you know if you're not eligible for the offer, so you can cancel your application.
- There is a foreign transaction fee. There is a 2.7% foreign transaction fee (See Rates & Fees) for purchases made outside of the U.S. So this is not the best card to take abroad with you.
- There is a balance transfer fee. Although you get an intro APR on balance transfers, there is a balance transfer fee of 3% the amount you're transferring (or $5, whichever is greater) (See Rates & Fees). So the transfer is not free.
If your goal is paying off debt, you may want to consider a card with a no balance transfer fee promotion.
- You could earn more cash back with other cards. 1.5% cash back is decent, but you could get more than that with other cards. For example, Chase Freedom gives up to 5% cash back in quarterly rotating categories, though you'll have to keep track of the categories and spend strategically.
How It Compares
Let's look at how the Cash Magnet compares against other popular cashback cards.
Compared to Chase Freedom Unlimited:
At first glance, the two cards are very similar. The Chase Freedom Unlimited is another card that gives 1.5% cash back on all purchases. It also has a 15-month intro APR.
The real difference is in the potential of the Freedom Unlimited. It's part of the Chase Ultimate Rewards family. If you eventually want to get one of the premium cards (like the Chase Sapphire Preferred), you can pool your points together. This will then allow you to use your points for higher value. You can either get a discount on the Chase travel portal or transfer to airline and hotel partners.
So if you're into travel rewards (or someday want to get into it), the Chase Freedom Unlimited will provide better value down the road.
![]() | ![]() | |
![]() | ![]() | |
American Express Cash Magnet® Card | Chase Freedom Unlimited® | |
---|---|---|
Summary | ||
|
| |
Interest Rates and Fees | ||
Introductory APR for Purchases | 0% introductory APR on purchases for 15 months | 0% introductory APR for 15 months |
Introductory APR for Balance Transfers | 0% introductory APR on balance transfers for 15 months | 0% introductory APR for 15 months |
Purchase APR | 14.49% to 25.49% Variable based on your creditworthiness and other factors | 16.49% to 25.24% Variable based on your creditworthiness and other factors |
Balance Transfers APR | 14.49% to 25.49% Variable based on your creditworthiness and other factors | 16.49% to 25.24% Variable based on your creditworthiness and other factors |
Annual Fee | ||
Benefits and Features | ||
Introductory Bonus Cash Back | Introductory Bonus Cash Back: 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. | Introductory Bonus Cash Back: Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening. Earn unlimited 1.5% cash back on all purchases. |
Cash Back Rewards | Cash Back Rewards: Unlimited 1.5% Cash Back on your purchases. | Cash Back Rewards: Earn unlimited 1.5% cash back on all purchases. |
![]() | ![]() |
Compared to Capital One® Quicksilver® Cash Rewards Credit Card:
Capital One Quicksilver also offers 1.5% cash back and 15-month intro APR. However, one big pro point for the Quicksilver is that it has no foreign transaction fees. So this is the better card if you plan to travel abroad.
Cash Magnet | Capital One Quicksilver | |
---|---|---|
Interest Rates and Fees | ||
Introductory APR for Purchases | 0% introductory APR on purchases for 15 months | 0% intro on purchases for 15 months |
Introductory APR for Balance Transfers | 0% introductory APR on balance transfers for 15 months | 0% intro on balance transfers for 15 months |
Purchase APR | 14.49% to 25.49% Variable based on your creditworthiness and other factors | 15.74% to 25.74% (Variable) based on your creditworthiness and other factors |
Balance Transfers APR | 14.49% to 25.49% Variable based on your creditworthiness and other factors | 15.74% to 25.74% (Variable) based on your creditworthiness and other factors |
Foreign Transaction Fee | 2.7% of each transaction after conversion to US dollars. | No foreign transaction fee |
Annual Fee | ||
Terms Apply. | ||
Benefits and Features | ||
Cash Back Deal | Introductory Bonus Cash Back: 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. | Introductory Bonus Cash Back: Earn a one-time $150 bonus if you spend $500 on purchases within three months of account opening. |
Cash Back | Cash Back Rewards: Unlimited 1.5% Cash Back on your purchases. | Cash Back Rewards: Earn 1.5% cash back on every purchase |
Capital One Quicksilver: Pricing information including interest rates, rewards, benefits and fees was obtained on October 1, 2019 from published websites and is believed to be accurate, but not guaranteed. Disclaimer: The information for the Capital One® Quicksilver® Cash Rewards Credit Card has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer. |
Compared to AMEX Blue Cash Everyday
Blue Cash Everyday gives you bonus cash back at U.S. supermarkets, U.S. gas stations, and U.S. department stores. It's better if most of your spending is on groceries and gas.
Since the Blue Cash Everyday also has no annual fee (See Rates & Fees), it even makes sense to have both. You can maximize cash back by using the Blue Cash for groceries, gas, and department store shopping, and the Cash Magnet on everything else.
![]() | ![]() | |
![]() | ![]() | |
American Express Cash Magnet® Card | Blue Cash Everyday® Card from American Express | |
---|---|---|
Summary | ||
|
| |
Interest Rates and Fees | ||
Introductory APR for Purchases | 0% introductory APR on purchases for 15 months | 0% introductory APR on Purchases for 15 months |
Introductory APR for Balance Transfers | 0% introductory APR on balance transfers for 15 months | 0% introductory APR on Balance Transfers for 15 months |
Purchase APR | 14.49% to 25.49% Variable based on your creditworthiness and other factors | 14.49% to 25.49% Variable based on your creditworthiness and other factors |
Balance Transfers APR | 14.49% to 25.49% Variable based on your creditworthiness and other factors | 14.49% to 25.49% Variable based on your creditworthiness and other factors |
Annual Fee | ||
Benefits and Features | ||
Introductory Bonus Cash Back | Introductory Bonus Cash Back: 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. | Introductory Bonus Cash Back: Earn a $150 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months. |
Cash Back Rewards | Cash Back Rewards: Unlimited 1.5% Cash Back on your purchases. | Cash Back Rewards: 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 at select U.S. department stores, 1% back on other purchases. |
Gas Rewards | Gas Rewards: 2% Cash Back at U.S. gas stations. | |
Grocery Rewards | Grocery Rewards: 3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). | |
![]() | ![]() | |
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. |
Bottom Line
We're glad that AMEX has introduced an all-around cashback card to their lineup. The Cash Magnet is good for those who want a simple cashback card without needing to keep track of categories. 1.5% cash back is above average, though there are other no-annual-fee cashback cards with better reward rates.
Next Step: View the issuer's official application, terms, and details
Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through the Advertiser's affiliate programs.
Disclaimer: This content was first published on August 18, 2018. Information including APR, terms and benefits may vary, be out of date, or not applicable to you. Information is provided without warranty. Please check American Express website for updated information.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.
For rates and fees of the Blue Cash Everyday card, please click here.
For rates and fees of the Cash Magnet card, please click here.
Disclaimer: The information for the Chase Freedom and Capital One® Quicksilver® Cash Rewards Credit Card has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.
More from CreditDonkey:
|
|
|