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.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
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.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

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American Express Cash Magnet® Card

American Express Cash Magnet

Rewards Plan

1.5% unlimited 1.5 percent cash back on all purchases

Welcome Bonus

$200 $200 statement credit for spending $2,000 in the first 6 months of account opening

Credit Rating

Good – Excellent

0% Intro

15 months on purchases

Annual Fee

$0

APR

18.49% – 29.49% 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

$200 $200 statement credit for spending $2,000 in the first 6 months of account opening

0% Intro

15 months on purchases

PROS

CONS

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.

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.

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.

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.

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.

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.

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.

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

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.

American Express Cash MAgnet

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

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.

American Express Cash MAgnet

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:

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Chase Freedom Flex

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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
18.49% – 28.49% (Variable)

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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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Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

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In order to determine the best possible credit cards, we look at things like fees, interest rates and rewards. We do this with companies that are associated with us as partners as well as other offerings. From there, we make a decision about what the best card is related to different categories and needs. We focus on interest rate cost & fees, especially the cost of carrying a balance, rewards – cards accumulate rewards in different currencies—points, miles, cash back—and their values vary widely usability – cards that accept a wide range of credit profiles and offer simple solutions for things like checking your credit score or contacting. We also consider customer reviews.

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