Cash Magnet Review: Is 1.5% Attractive Enough?

With 1.5% cash back, a welcome bonus, long intro APR, and no annual fee , 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 , so you'll have time to pay off large purchases interest-free.

Why We Like the Cash Magnet

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• Earn a bonus. Earn a $200 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 14.99% - 25.99% Variable APR) . 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 all the standard AMEX benefits as well, including:

• Extended Warranty. Matches the original U.S. manufacturer's warranty for up to 2 additional years on eligible purchases. Applies to warranties of 5 years or less.

• Return Protection. If within 90 days of purchase, you want to return something and the store won't take it back, you can be reimbursed up to $300 for each eligible item, for a maximum of $1,000 per year.

• 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 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) . 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
		New Offer! Double Cash Back: Earn 3% cash back on all purchases in your first year up to $20,000 spent. After that earn unlimited 1.5% cash back on all purchases. 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 17.24-25.99%. Balance transfer fee is 3% of the amount transferred, $5 minimum No minimum to redeem for cash back Cash Back rewards do not expire as long as your account is open Free credit score, updated weekly with Credit Journey℠ No annual fee
	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	14.99% to 25.99% Variable based on your creditworthiness and other factors	17.24% to 25.99% Variable based on your creditworthiness and other factors
Balance Transfers APR	14.99% to 25.99% Variable based on your creditworthiness and other factors	17.24% to 25.99% Variable based on your creditworthiness and other factors
Annual Fee	$0 annual fee	$0 annual fee
	Benefits and Features
Introductory Bonus Cash Back	Introductory Bonus Cash Back: Earn a $200 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: Double Cash Back: Earn 3% cash back on all purchases in your first year up to $20,000 spent. After that 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: Double Cash Back: Earn 3% cash back on all purchases in your first year up to $20,000 spent. After that earn unlimited 1.5% cash back on all purchases.
Cash Magnet: Pricing information including interest rates, benefits and fees was obtained on August 1, 2019 from published websites and is believed to be accurate, but not guaranteed. Disclaimer: The information for the American Express Cash Magnet® 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 Capital One Quicksilver:
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.

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 , 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.

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.