Credit Cards » Credit Card Reviews » American Express Cash Magnet® Card Review
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American Express Cash Magnet® Card Review

American Express Cash Magnet® is a simple cash back card for people who want easy, uncomplicated rewards and aren’t high spenders.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

American Express Cash Magnet® Card

American Express Cash Magnet

Rewards Plan

1.5% unlimited 1.5 percent cash back on all purchases

Welcome Bonus

$150 $150 statement credit for spending $1,000 in the first 3 months of account opening

Our Rating

4
4/5

0% Intro

15 months on purchases

Annual Fee

$0

APR

19.24% to 29.99% Variable
American Express Cash Magnet® Card

American Express Cash Magnet

Rates & Fees / Terms Apply

Rewards Plan

1.5% unlimited 1.5 percent cash back on all purchases

Welcome Bonus

$150 $150 statement credit for spending $1,000 in the first 3 months of account opening

Our Rating

4
4/5

PROS

CONS

APR

19.24% to 29.99% Variable

Annual Fee

$0

0% Intro

15 months on purchases

Credit Requirements

Good - Excellent

The American Express Cash Magnet® Card is a straightforward rewards credit card that appeals to those seeking simplicity with a flat cash back rate on all purchases as well as enticing 0% intro APR.

The Amex Cash Magnet offers you 1.5% flat-rate cash back on all eligible purchases you make with the card.  There is also a welcome bonus of $150 statement credit for spending $1,000 in the first 3 months of account opening. The card has some basic additional benefits, such as access to American Express Experiences, car rental insurance, and a global assist hotline for travelers.

Compared to other credit cards, the American Express Cash Magnet Card does not offer any significantly special reward you can’t find elsewhere, but its good intro APR, modest fees and clear-cut rewards system make it beneficial to anyone looking to earn rewards without having to track spending categories.

Can I Get Car Rental Insurance With the  American Express Cash Magnet? 

The American Express Cash Magnet card does come with car rental coverage.

When you use your card to reserve and pay for the rental and decline the rental company collision damage waiver, you will have Damage to and Theft of insurance for rental vehicles in covered territories. This provides secondary coverage, but you’ll still need liability coverage.

What is the Initial Credit Limit?

American Express does not disclose official minimum initial credit limit guidelines, but customers suggest it can be as low as $1,000 up to $10,000 or more.

Your credit limit will be determined according to several factors, including your credit score, income, and other criteria.

How Do I Redeem Cash Back?

You can redeem your cash back any time, providing you have at least $25. All you need to do is log into your account and click Use Reward Dollars.

You can select the amount you would like to redeem, which will be applied to your account as a statement credit. The credit will usually appear on your account within three business days.

What Purchases Don't Earn Cashback?

Although you can earn unlimited cash back with this card, some purchases will not earn you cash back. These include reloading pre-paid cards and purchasing traveler’s checks, cash advances, interest charges, or other cash equivalents.

How to Maximize Rewards?

Since you can earn unlimited cash back on your purchases with no categories, there are no strategic spending tactics to maximize your rewards.

However, it is possible to earn the possible rewards by using your card for all your everyday purchases. If you don’t have sufficient available credit, it could be a good idea to make a mid-statement payment to your account, allowing you to continue using your card.

Editorial Note: Terms apply to American Express benefits and offers. Enrollments may be required for select benefits. Visit americanexpress.com to learn more

Table of Contents

Pros & Cons

Let’s take a closer look at the pros and cons of the Amex Cash Magnet Card:

Pros
Cons
Welcome Bonus
Average Cashback Ratio
Flat Cash Back Rate
Foreign Transaction Fee
0% Intro APR
Limited Redemption Options
American Express Experiences
Car Rental Loss and Damage Insurance

You earn up to $150 statement credit for spending $1,000 in the first 3 months of account opening This can easily be clinched by charging basic monthly expenses to the card.

The card offers a straightforward unlimited 1.5 percent cash back on all purchases, eliminating the need to navigate or activate bonus spending categories.

When paying for the entire car rental with the card and declining the rental company's collision damage waiver, users receive secondary coverage against damage or theft of the rental vehicle.

Earn 15 months on purchases made with your credit card from the opening date (then APR of 19.24% to 29.99% Variable will apply). 

This is three months longer than the average intro period on other credit cards. This is beneficial if you have to make costly purchases which may cause you to carry debt.

Cardholders gain access to exclusive ticket pre-sales and cardmember-only events through the American Express Experiences program.

1.5% cash back is nice, but there are cards that offer  higher flat rate cashback and much higher cashback on specific categories.

The card imposes a foreign transaction fee of 2.7% (see rates and fees), making it less favorable for international travelers.

Rewards on the American Express Cash Magnet Card can only be redeemed as statement credits, merchandise or gift cards. 

This is a disadvantage for people who want more tangible rewards which can be used for other things. Your rewards are not transferable and you cannot redeem them until you have accrued at least $25.

Application Process

Applying for an American Express Cash Magnet Card is quick and straight-forward.

If you have no US credit history, you should have a good credit history in at least one of these countries before applying: Canada, Australia, the UK, Mexico or India.

Visit the American Express homepage, navigate to the “Personal Cards” section and click “Cash Magnet® Card” from the list of cash back cards.

Once here, click on “Apply Now” to begin.

The application is a 3-stage process:

  1. Provide Info (about yourself)
  2. Submit Application
  3. Get Decision

Everything takes only a few minutes.

First, provide information about yourself:

Fill in your full name (as it will appear on the card), email address, date of birth, phone number and home address. Provide your social security number, total annual income and income source.

NB: You may choose to enter your non-taxable annual income if it applies to you. This includes child support, social security, disability, etc. Leave this field blank if you’re under 21.

American Express Cash MAgnet

American Express Cash MAgnet

In the next stage, you will be presented with the Terms & Conditions. You may print or save it before agreeing. Once you have agreed, click on submit and you’re done.

Wait a few seconds for the result of your application on the next page. If you don’t get a decision immediately, wait up to 14 days to receive a response from American Express on your application status. Do not resend it.

How It Compared To Cashback Cards With 0% Intro APR?

The American Express Cash Magnet® Card offers a competitive option for those seeking a balance between cash rewards and a temporary break from interest charges.

Cards like the Wells Fargo Active Cash® Card and Citi Double Cash® Card offers 2% flat rate cash back rate, outperforming the Cash Magnet in terms of cash rewards. These alternatives also feature no annual fees and similar introductory APR period.

Chase Freedom Unlimited, for instance, offers a 0% intro APR for 15 months on purchases and balance transfers, similar to the Cash Magnet, but stands out with its higher cash back rate of 5% on travel purchased through Chase Ultimate Rewards, 3% on dining at restaurants, including takeout and eligible delivery services, 3% on drugstore purchases and 1.5% cash back on all purchases. This potentially provides more substantial rewards for those who frequently spend in these categories.

Another worth mentioning card is the Capital One SavorOne, which offers 0% intro APR for 15 months and offers a higher cash back rate of Earn unlimited 3% cash back on dining, entertainment, popular streaming services and grocery store purchases (excluding superstores like Walmart® and Target®), 1 percent on all other purchases. 10% percent cash back on purchases made through Uber and Uber Eats. 8% cash back on Capital One Entertainment purchases. 5% cash back on hotels and rental cars booked using Capital One Travel., making it appealing for individuals who prioritize these expenses.

Lastly in the category is the Bank Of America Customized Cash Rewards with its 0% intro APR for 15 billing cycles, allows users to earn cash back in categories of their choice, including a 3% cash back option on a category like gas or online shopping.

FAQ

American Express has a 24/7 customer support phone line, so you can access help or have queries answered at any time of the day or night. While you may have to wait on hold during peak periods, it does mean that you don’t have to worry about getting through before the end of the business day.

One of the nice things about the American Express Cash Magnet card is that there are no confusing reward categories or conversions. Rather than using points or miles, you’ll earn a percentage of cash back, which is reflected in dollars. These reward dollars are redeemed in a 1:1 ratio for statement credit

American Express National Bank is part of the Amex group, but the accounts are not connected to any American Express credit cards. Each account has its own login via the appropriate website, so they are not integrated.

The American Express Cash Magnet is ideal if you’re looking for a credit card with a simple reward structure. You’ll earn flat cash back without having to worry about spending categories or caps.

Additionally, since it is a cashback percentage, there are no complicated redemption conversions or ratios. You can simply request a statement credit using your reward dollars at any time, providing you have at least $25.

Compare The Alternatives

Several other credit cards provide similar rewards to the Amex Cash Magnet. Before applying, you may want to take a look to make the smartest decision:

American express everyday card review 2021

Chase Freedom Flex

citi double cash

American Express EveryDay® Card
Chase Freedom Flex℠ Card
Citi® Double Cash Card
Annual Fee
$0 . See Fees & Rates
$0
$0
Rewards
1X – 2X 2X points at U.S. supermarkets (up to $6,000 per year, then 1X), 2X points on prepaid rental cars booked through American Express Travel and 1X points on all other purchases
1-5% 5% cash back on up to $1,500 in combined purchases on selected categories each quarter and 5% cash back on travel purchased through Chase Ultimate Rewards®. Also, you can earn 3% cash back on dining at restaurants (including takeout and eligible delivery services), drugstore purchases , and 1% on all other purchases
1% – 2% 2% cash back rewards rate – 1% every time you swipe and another 1% upon payment.
Welcome bonus
10,000 points 10,000 points after you spend $1,000 in purchases on your new card within the first 3 months
$200 $200 bonus after you spend $500 on purchases in the first 3 months from account opening
$200 $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening
Foreign Transaction Fee
2.7%
3%
3%
Purchase APR
18.24% – 28.24% Variable
20.49%–29.24% variable
19.24% – 29.24% (Variable)

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Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.

All information about American Express Cash Magnet Card has been collected independently by The Smart Investor. American Express Cash Magnet Card Card is no longer available through The Smart Investor.

Picture of Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
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