Save money and be informed. CreditDonkey is a credit card comparison and reviews website. This website is made possible through financial relationships with card issuers and some of the products and services mentioned on this site. Advertiser Disclosure†
August 18, 2018

Cash Magnet Review: Is 1.5% Attractive Enough?

Read more about American Express, a CreditDonkey advertiser
Editorial Note: This content is not provided by the card issuer. Opinions expressed here are author's alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer.
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. (read more)

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
5-point scale (the higher, the better)

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 offer, long intro APR, and no annual fee , this AMEX credit card is looking very attractive. Note: Cash back is received in the form of Reward Dollars that can be redeemed for statement credits.

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

© CreditDonkey

  • 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 credits.

    You can redeem for statement credit whenever you have accumulated $25 in rewards.

  • Long intro APR on purchases. There is a 0% introductory APR for the first 15 months on purchases (then a 13.99% - 23.99% Variable APR) . This is great if you have large purchases coming up.

  • 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/charges/transactions 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 for purchases made outside of the U.S. So this is not the best card to take abroad with you.

  • 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, Discover It 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.

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.

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.

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.

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.

Write to Anna G at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

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.

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.

Disclaimer: The information for the American Express Cash Magnet® Card, Discover it® Cash Back, 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.

Read Next:

What's The Catch? Blue Cash Everyday Review

What's The Catch? Blue Cash Everyday Review

Chase Freedom Unlimited Review: Is It Good?

Chase Freedom Unlimited Review

Citi Double Cash Review: Too Good to Be True?

Citi Double Cash Review: Too Good to Be True?


Compare Cash Magnet to:

Leave a comment about Cash Magnet Review: Is 1.5% Attractive Enough?



About CreditDonkey
CreditDonkey is a credit card comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2022 CreditDonkey Inc. All Rights Reserved.