American Express Cash Magnet card review: Not exactly the cash back king
Editor’s note: This is a recurring post, updated regularly with new information and offers.
Overview of the American Express Cash Magnet® card
If simplicity is your thing, the American Express Cash Magnet® card is one of the easiest to overwhelm, with a flat 1.5% cash back rate on all purchases. There are no bonus categories to remember or points to figure out how to redeem. However, there are better options to truly maximize your spending. Card rating*: ⭐⭐⭐
*Card review based on the opinions of the TPG editorial board and not influenced by the card issuer.
It’s great when credit card rewards come easily. Spend money on anything under the sun and watch the rewards come. That is the case for many people Refund card, including Amex Cash Magnets. If you want a one-card wallet where you don’t have to think too much about the card you’re using, the Cash Magnet could make a lot of sense. However, this isn’t the most lucrative cash back card, so it may pay to look at other options.
It has no annual fee and encourage credit score of 670.
Let’s take a closer look at the Amex Cash Magnet.
Information about the Amex Cash Magnet Card has been independently collected by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Pros and cons of Amex Cash Magnet
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Amex Cash Magnet Welcome Offer
New Amex Cash Magnet cardholders will receive a $200 statement credit after spending $2,000 within the first six months of account opening. That’s not a bad welcome bonus for a card with no annual fee.
In addition to statement credits, Amex Magnet also has a 0% introductory APR that lasts for the first 15 months. That’s useful if you really need to buy larger-ticket items and need time to pay off the full cost. Of course, those who use credit cards to earn rewards should always avoid carrying a balance and incurring interest.
Benefits of Amex Cash Magnet
This card also comes with many benefits as part of the American Express card network. With no annual fee, cardholders are eligible for a variety of benefits, including:
- Car rental loss and damage insurance: You will receive additional insurance for your rental car when you decline the collision damage waiver at the counter and pay the full rental price with your card.
- Global support hotline: Ready to assist you with travel planning 24/7
- Amex offers: Earn more rewards on purchases with Targeted Amex Offers
Additionally, as an Amex cardholder, you are eligible Plan® program, which allows you to pay in monthly installments on purchases of $100 or more. To use this feature, you must first be deemed qualified according to your credit history. You’ll manage your plan through the American Express app if you qualify.
Related: The best credit cards with purchase protection
Earn cash back with Amex Cash Magnet
The most notable feature of Cash Magnet is the unlimited cashback component. With this card, you’ll get 1.5% cash back on every purchase, unlimited.
There are no bonus categories to keep track of or spending limits to keep in mind.
On the other hand, the bonus categories offered on other cards can let you earn more than earning the same percentage on every purchase.
This card is best for those looking for a simple cash-back experience, but you probably won’t maximize your value on every purchase.
Redeem cash back with Amex Cash Magnet
Cash Magnet cardholders are rewarded with cash called “Reward Dollars” that can be used for credit cards, merchandise, and gift cards.
Rewards dollars can be used to pay off your credit card balance.
Note that you cannot earn or redeem Amex Membership Rewards points with this card – downside if you’re looking to redeem your rewards for travel like a TPG editor Emily Thompson.
What cards compete with the Amex Cash Magnet?
While there is something to be said for simplicity, there are better cash back options.
- If you want a better income rate: The Citi Double Cash® Card (see exchange rates and fees) takes center stage with a whopping 2% cashback on all purchases (1% when you shop, 1% when you pay your bill). Cardholders can also convert the cashback they earn into ThankYou Points through another eligible Citi card. For more information, read our Full review of Double Cash.
- If you want bonus categories: The Pursue Unlimited Freedom® offers the same 1.5% back on purchases, plus 5% back on travel booked through the Ultimate Rewards portal and 3% back on dining and pharmacy. Cardholders can also convert their cash back into Chase Ultimate Rewards points by pairing the right card. For more information, read our Full review of Freedom Unlimited.
- If you are willing to pay the annual fee: Consider the Capital One Savor Cash Rewards Credit Card. With this card, you’ll get 4% back on dining, entertainment, and on popular streaming services, 3% back at grocery stores (excluding supermarkets like Walmart and Target), and 1 % for everything else. If dining and entertainment are your most used categories, you can easily offset the $95 annual fee. For more information, read our Full review of Capital One Savor.
For more options, see our complete list of best cashback card.
Information about the Capital One Savor card has been independently collected by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: The best time to apply for these Chase cards is based on offer history
Are Amex Cash Magnets Worth It?
Amex Cash Magnet is a good choice if you want to earn cash back on purchases you keep making. However, there are better options for cash-back credit cards, so be sure to research your options before deciding on a cash-back card.
Bottom line
While the simplicity of the Amex Cash Magnet is good for some, its earning rates are disappointing compared to its direct competitors.
You can still get some significant value from this card, but if your goal is simply to get a general cash back card with no annual fee, you can do better than the Amex Cash Magnet.
Related: Best American Express credit cards
