Cash Magnet Review: Is 1.5% Attractive Enough?

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.

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

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• Earn a bonus. Earn a $200 statement credit after you spend $2,000 or more in purchases with your new Card within the first 6 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 18.74% - 29.74% 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.

	American Express Cash Magnet® Card	Chase Freedom Unlimited®
	Summary
		INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back! Enjoy 6.5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, enjoy 5% cash back on Chase travel purchased through Ultimate Rewards®, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases. No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open! Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 19.49% - 28.24%. No annual fee - You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, real-time alerts, and more.
	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	N/A	0% introductory APR for 15 months
Purchase APR	18.74% to 29.74% Variable based on your creditworthiness and other factors	19.49% to 28.24% Variable based on your creditworthiness and other factors
Balance Transfers APR	N/A	19.49% to 28.24% Variable based on your creditworthiness and other factors
Annual Fee	$0 annual fee	$0 annual fee
	Benefits and Features
Introductory Bonus Cash Back	Earn a $200 statement credit after you spend $2,000 or more in purchases with your new Card within the first 6 months of Card Membership.	Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
Cash Back Rewards	Unlimited 1.5% Cash Back on your purchases.	Enjoy 6.5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
Dining Rewards		Earn 3% cash back on dining at restaurants, including takeout and eligible delivery services
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. Cash Magnet: Pricing information including interest rates, benefits and fees was obtained on March 23, 2023 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 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 and U.S. gas stations. 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 and gas purchases, and the Cash Magnet on everything else.

	American Express Cash Magnet® Card	Blue Cash Everyday® Card from American Express
	Summary
		Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. No Annual Fee. Balance Transfer is back! Enjoy 0% intro APR on purchases and balance transfers for 15 months from the date of account opening. After that, 18.74% to 29.74% variable APR. 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%. Get $7 back each month after using your Blue Cash Everyday Card to spend $12.99 or more each month on an eligible subscription to The Disney Bundle, which includes Disney+, Hulu, and ESPN+. Enrollment required. Terms Apply. See Rates & Fees
	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	N/A	0% introductory APR on Balance Transfers for 15 months
Purchase APR	18.74% to 29.74% Variable based on your creditworthiness and other factors	18.74% to 29.74% Variable based on your creditworthiness and other factors
Balance Transfers APR	N/A	18.74% to 29.74% Variable based on your creditworthiness and other factors
Annual Fee	$0 annual fee	$0 annual fee
	Benefits and Features
Introductory Bonus Cash Back	Earn a $200 statement credit after you spend $2,000 or more in purchases with your new Card within the first 6 months of Card Membership.	Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Cash Back Rewards	Unlimited 1.5% Cash Back on your purchases.	3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%.
Gas Rewards		3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%.
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. Cash Magnet: Pricing information including interest rates, benefits and fees was obtained on March 23, 2023 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.

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.