Rewards Plan
Welcome Bonus
Credit Rating
0% Intro
Annual Fee
APR
- Welcome Bonus
- 0% Intro APR
- Limited Redemption Options
- Foreign Transaction Fee
Rewards Plan
Welcome Bonus
0% Intro
PROS
- Welcome Bonus
- 0% Intro APR
CONS
- Limited Redemption Options
- Foreign Transaction Fee
APR
18.49% - 29.49% variable
Annual Fee
$0
Balance Transfer Fee
N/A
Credit Requirements
Good - Excellent
The American Express Cash Magnet® Card is a simple cash back credit card that offers you 1.5% flat-rate cash back on all eligible purchases you make with the card. It is a great choice for people who want easy, uncomplicated rewards and aren’t high spenders. There is an attractive welcome bonus if you meet the spending requirements in the first three months.
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.
If you own another rewards credit card, it’s a good idea to use this one on regular purchases that normally would not attract bonuses there.
While it is not targeted towards those trying to build credit, the generous intro rate, payment flexibility and features like the Pay It Plan It (which allows you to split purchases into fixed monthly payments) can help you manage your account more effectively and demonstrate good financial responsibility.
A significant turn-off for many people is that the rewards offered by this card are nearly only redeemable as statement credits. Gift cards and merchandise are other options you may get occasionally. You cannot redeem your rewards if below $25, which can be quite limiting. American Express is also not widely accepted by merchants as Mastercard and Visa.
- Welcome Bonus
- 0% Intro APR
- Car Rental Insurance
- Unlimited Cash Back
- Pay It® Plan It
- Limited Redemption Options
- Foreign Transaction Fee
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
Benefits
Let’s take a look at the benefits of this credit card and see if it’s the right one for your wallet or not.
- Welcome Bonus
You earn up to $200 statement credit for spending $2,000 in the first 6 months of account opening This can easily be clinched by charging basic monthly expenses to the card.
- 0% Intro APR
Earn 15 months on purchases made with your credit card from the opening date (then APR of 18.49% – 29.49% 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.
- Car Rental Insurance
If you use your American Express Cash Magnet Card to pay for an entire car rental and decline the company’s damage collision waiver, you will be insured against loss and damage within covered territories. The coverage provided by American Express is secondary and does not absolve you of liability. It also doesn’t cover all types of rented cars.
- Unlimited Cash Back
With this card, you get unlimited 1.5 percent cash back on all purchases on all eligible purchases. These cash backs are added to your account as reward dollars which can only be redeemed as statement credits. Sometimes, you may be allowed to redeem your rewards as gift cards or other merchandise. Your rewards are not capped, and they do not expire.
- Pay It® Plan It
You’re allowed to pay for purchases in two ways using this feature. You may pay for purchases under $100 from the app immediately. For purchases above $100, you’re allowed to split the cost into fixed monthly payments with no interest charged to you for this. Terms apply.
Drawbacks
Let’s take a look at the drawbacks of this credit card and see if it’s the right one for your wallet or not.
- Limited Redemption Options
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.
- Foreign Transaction Fee
The 2.7% foreign transaction fee attached to this card (see rates and fees) is slightly low compared to the average on other cards which charge foreign transaction fees. But it can add up if you make a lot of international purchases. It’s a good idea to compare the benefits of this card with others which waive the fees before committing.
Application Process
- 1.
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.
- 2.
The application is a 3-stage process:
- Provide Info (about yourself)
- Submit Application
- 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.
- 3.
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.
- 4.
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.
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 | Chase Freedom Flex℠ Card | Citi® Double Cash Card | |
Annual Fee | $0
. See Fees & Rates
| $0
| $0
|
Rewards |
1X – 2X
2X at U.S. supermarkets (up to $6,000 each year), then 1x on all 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
|
2% (1% when purchase and another 1% upon payment)
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
|
None
None
|
Foreign Transaction Fee | 2.7%
| 3%
| 3%
|
Purchase APR | 17.49% – 28.49% variable
| 19.49% – 28.24% variable
| 18.74% – 28.74% (Variable)
|
Review Rewards Credit Cards
Citi Custom Cash
Chase Freedom Unlimited
Discover It Cash Back
American Express Blue Cash Preferred
Chase Sapphire Preferred
Citi Double Cash
Citi Rewards+
U.S. Bank Altitude Go
Delta SkyMiles Gold American Express
PNC Points Visa
* 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.
