American Express Cash Magnet Card Review
The American Express Cash Magnet Card offers 1.5% cash back with no limits on rewards and 0% APR for the first 15 months. This makes it an ideal option if you are looking for a hassle-free cash back card with no annual fees and access to Amex Offers.
If you want to earn cash back rewards on all your purchases without having to enroll in particular categories, the American Express Cash Magnet Card will allow you to do just that. No limit on rewards means that you can easily earn a decent amount of cash back in no time. However, if you are a frequent traveler, the foreign transaction fees and limited acceptance may not be ideal. If you would like to find out if the American Express Cash Magnet Card benefits are right for you, we have identified all the key features, as well as the pros and cons.
Card Details to Know Up Front
- Bonus, Fee or FeatureHas or Not
- Has Annual Fee
- Has Balance Transfer Offer
- Has APR Offer
- Cash Back Rewards
- Travel Rewards
American Express Cash Magnet Card at a Glance
The American Express Cash Magnet comes with an introductory 0% APR for 15 months and a welcome bonus. The welcome bonus is a $200 statement credit when you spend $1,000 or more within the first three months of card membership. If you want to get Amex offers without paying hefty prices, the Cash Magnet has no annual fees. You also get unlimited 1.5% cash back on your purchases that can be redeemed as a statement credit.
- American Express Cash Magnet Card
Best rewards card for frequent fliers and diners
- ExcellentCredit Needed
- $0Annual Fee
- 1.5% Cash BackRewards Rate
- 1.5xRewards Rate on Gas
- 1.5xRewards Rate on Groceries
Pros & Cons Explained
The American Express Cash Magnet is ideal for someone looking for an easy-to-use cash back card for everyday purchases. However, before signing up, it is important to understand all the features of the Cash Magnet and why you should get it.
- No category enrollment requiredThis cash back card does not require you to enroll in certain categories to get your rewards. Almost all your purchases earn 1.5% cash back regardless of the purchase category.
- 15-Month 0% intro APR on purchasesFor the first 15 months, your purchases using the American Express Cash Magnet will not accrue any interest. After this period, you will be charged a variable APR rate. This can range between 13.99% to 23.99% depending on your creditworthiness, among other factors.
- No rewards limits or expiration timelinesAny cash back rewards you earn on your Magnet Card do not expire. There is also no cap on the rewards you can earn.
- No annual feeIf you would like to access Amex offers without paying costly fees, the American Express Cash Magnet has no annual fees and you still get all the perks of an Amex Card.
- Foreign Transaction FeeIf you travel frequently, you will find the 2.7% foreign transaction fee hits you in the wallet more than you would like. If you regularly travel outside the country, the American Express Cash Magnet may not be the best option for you.
- Penalty APRIf you miss or make a late payment, your APR may increase significantly. That’s in addition to being hit with severe late fees and other charges. This means you have to be vigilant with your due dates when using this card to avoid facing extra charges.
- Minimum $25 redemptionThe minimum limit for redemption on the Magnet Card is $25. You will not be able to redeem your rewards for lower amounts.
Bonuses & Rewards Explained
Here are the bonuses and rewards you can expect with the American Express Cash Magnet Card.
When you spend $2,000 in purchases on your new Magnet Card within the first six months, you will earn $200 back in the form of a statement credit.
Rewards Earning Details
The American Express Magnet Card comes with a flat rate of 1.5% cash back on eligible purchases. This means purchases in all categories earn the same amount. The rewards on this card are unlimited and do not expire. However, like most other cash back cards, your rewards are on eligible purchases. These exclude returns, fees or interest charges, cash advances and purchases of travelers’ checks.
Rewards Redemption Details
You can redeem your rewards for statement credits, and the minimum for redemption is $25. Apart from statement credits, you can also redeem your rewards for gift cards or special offers on merchandise where available.
Maximizing Your Rewards
Since this cashback card has a flat rate of 1.5% cash back on all purchases, you can earn easy rewards for all your everyday purchases. Your monthly bills, like your phone bill, will also earn you cash back if you use the Magnet Card.
Other Features Explained
There are multiple reasons to choose the American Express Magnet Card as your cash back card. Some other features that make this card worthwhile include:
- Card FeatureDescription
- Payment FlexibilityYour Magnet Card allows you to either carry a balance with interest or pay in full each month. This gives you the flexibility to make payments at your convenience while still earning reward points.
- Fraud ProtectionYour American Express Magnet Card has a host of safety features for fraud protection, including customer alerts for irregular account activity and pre-purchase verification for certain transactions. You also get free card replacement within a few days if you lose your card.
- Get Amex OffersYou can take advantage of Amex rewards at places you like to dine, shop or travel. All you need to do is log in to your account online or on the American Express App to add offers to your card, then enjoy rewards directly on your statement.
"Flat earnings cash back cards like the American Express Magnet Card are great for using at retailers that don’t typically offer increased points earnings. This includes retailers like Costco, Wal-Mart, Target and Amazon." - Alene Laney, Credit Card Journalist
Understanding the Fine Print
As with any new financial account you open, it’s important to understand the fine print regarding the account. Here’s what you should know about the Magnet Card.
- Card FeatureAmount or Rate
- Annual Fee$0
- Cash Back Rewards
- Rewards Rate1.5% Cash Back
- Airline Benefits
Cash Back Rewards Rate
The American Express Magnet Card benefits include a flat rate of 1.5% cash back on all eligible purchases regardless of category. This means you do not need to enroll for specific categories since the rate remains the same for all your eligible purchases.
Annual Percentage Rate (APR) for Purchases
This card comes with a 0% introductory APR for the first 15 months. After this, your APR will range from 13.99% to 23.99%, depending on your credit score and other factors assessed at the time of application. The better your credit score is, the lower your APR rate is likely to be after the introductory period.
Cash Advance APR
The APR for a cash advance on your Magnet Card is 25.24%, but this can vary based on the prime rate. The prime rate typically varies depending on the prevailing interest rates used by banks.
The transaction fee for cash advances is either $10 or 5% of each cash advance, whichever is greater. For foreign transactions, the fees are 2.7% of each transaction. These transaction fees mean that if you travel frequently, you are better off choosing a travel card with no foreign transaction fees.
Your due dates on the American Express Card are 25 days after the close of each billing period. If you pay your entire balance monthly by the due date, your account will not incur any interest. However, late payments will be subject to additional fees and penalties. For late payments, penalty fees can be up to $40, while returned payments can also incur charges of up to $40.
The American Express Magnet Card has no annual fees. This makes it a great option if you want to take advantage of Amex Offers worldwide without paying costly annual fees.
When comparing this card with other cash back reward cards, it is important to evaluate the reward rate and which card offers you the best rate. You should also consider any spending caps and the reward redemption details to find the card that will be best for your particular needs. This information is available on the American Express Website as well as on the app. Furthermore, check your billing statements as some of the fees, terms and conditions on your card will be clearly stipulated.
Who Should & Shouldn’t Consider American Express Cash Magnet Card?
Other Considerations for American Express Cash Magnet Card
Depending on whether the American Express Cash Magnet Card is your only cash back card or an additional card, there are some considerations that you need to keep in mind.
Things to Consider if This Will Be Your First or Only Credit Card
- Penalty APR: The APR for this card can become quite costly if you miss a payment. This means that you should always make sure that you have sufficient funds in your bank on the due dates to avoid facing stiff penalties and an increase in your APR.
- High foreign transaction fees: This card has high foreign transaction fees, so you may want to go with another option if you frequently travel outside the country.
Things to Consider if This Will Be an Additional Card in Your Wallet
- Flat rate for all categories: The 1.5% flat rate for all categories on this card makes it easy to use. However, you may find that you can get higher rates for specific categories using cards that offer different rewards rates for different categories. For example, if you have a reward card that gives you 3% cash back on gas, you will be better off using that card for your gas purchases.
- Access to Amex offers: If you have other cards but still want to enjoy the curated American Express experience, you can opt to get the Magnet Card since it does not come with any annual fees. This makes it an affordable way to enjoy Amex offers while earning cash back rewards.
MoneyGeek uses a comprehensive six-step process that involves collecting credit card information, standardizing data point weights, establishing the card value and ranks for different categories, reviewing data monthly and reprocess rankings, among other key rating factors. Our thorough review process helps us determine the best credit cards for different consumer profiles based on card fees, interest rates, rewards, benefits and more.
How American Express Cash Magnet Card Compares to Other Cards
The Cash Magnet is a solid choice for those who want an easy-to-use cash back card for everyday purchases. The 1.5% cash back rate for all eligible purchases makes this card uncomplicated. The generous introductory APR of 0% on purchases for 15 months is a definite plus. However, compared to other cards in the segment like the Chase Freedom Flex, the Magnet card offers lower cash back rewards.
Quick Comparison of American Express Cash Magnet Card
American Express Cash Magnet
- Annual fee: $0
- Purchase APR: 13.99% to 23.99%
- International transaction fee: 2.7%
- Cash back rate: 1.5%
- $25 minimum to redeem
- Best For: Best for earning cash back rewards on everyday purchases
Chase Freedom Flex
- Annual fee: $0
- Purchase APR: 14.99 to 23.74%.
- International transaction fee: 3%
- Cash back rate: Up to 5%
- No minimum to redeem for cash back.
- Best For: Best for travel and earning generous rewards on specific categories including grocery stores.
Other Helpful Decision-Making Q&As
Before you complete your American Express Cash Magnet Card application, the answers below will answer some of the most commonly asked questions about this card.
Still not sure about this card? Consider these options.
For easy cash rewards and access to Amex offers, the American Express Cash Magnet Card is a great choice. However, if you are looking for a more travel-friendly card or one with higher reward rates, you can look at other options for cashback credit cards.
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Learn more about credit cards in general
- American Express. "Amex Offers." Accessed August 19, 2021.
- American Express. "How to Increase Your Credit Limit." Accessed August 18, 2021.
- American Express. "Interest Rates and Interest Charges." Accessed August 19, 2021.
- American Express. "MyCredit Guide Frequently Asked Questions." Accessed August 18, 2021.
- Creditcards.com. "How to get preapproved for an American Express Card." Accessed August 19, 2021.
- Forbes Advisor. "American Express Cash Magnet Credit Card Review." Accessed August 19, 2021.
Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity.
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