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American Express Cash Magnet Card Credit Card Review

American Express Cash Magnet Card Credit Card Review

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Aug 14, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

The American Express Cash Magnet® Card – $150 Welcome Offer is a simple $0 annual fee flat-rate cashback rewards card with good benefits and a welcome bonus that’s relatively easy to earn.

However, know that there are other cashback cards that offer higher rewards earning rates, which can put more cash back in your pocket.

We take a look at the pros and cons of the American Express Cash Magnet® Card – $150 Welcome Offer and compare it with another flat-rate cashback card, the Chase Freedom Unlimited®, to help you decide which card may be the better choice for your spending.

  • Earn up to $150 back

  • Unlimited 1.5% Cash Back on your purchases

  • Reward Dollars can be easily redeemed for statement credits, gift cards, and merchandise

Highlights
  • Earn a $150 statement credit after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.
  • Unlimited 1.5% Cash Back on your purchases.
  • Low intro APR: 0% for 15 months on purchases from the date of account opening, then a variable rate, currently 13.99% to 23.99%.
  • Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee.
  • Amex Offers rewards you at places you like to shop, dine, travel, and more. You can add as many Offers as you’d like to your Card, then just use that Card to pay, and enjoy rewards directly on your statement.
  • Cash Back is received in the form of Reward Dollars that can be redeemed for statement credits.
  • No Annual Fee.
  • Terms Apply.
  • See Rates & Fees

See additional details for American Express Cash Magnet® Card – $150 Welcome Offer

More Info

American Express Cash Magnet® Card – $150 Welcome Offer pros

Annual fee. This card comes with a $0 annual fee.

Simple rewards structure. While there are cashback cards that earn higher rates on purchases, they may require you to opt into rotating categories throughout the year and set a limit on the amount you can earn at the higher rewards rate. That’s not the case here, as you earn an unlimited 1.5% cash back on your purchases.

Easy-to-earn welcome offer. Earn a $150 statement credit after you spend $1,000 or more in purchases with your new card within the first 3 months of card membership.

Intro APR offer on purchases. If you’re looking to finance a large purchase, the American Express Cash Magnet® Card – $150 Welcome Offer offers an introductory APR of 0% on purchases for 15 months (after which an APR of 13.99%-23.99% variable will apply).

Flexible repayment options. With the American Express Cash Magnet® Card – $150 Welcome Offer, you can choose between two repayment options, called Pay It, Plan It. The Pay It option allows you to pay for small purchases under $100 throughout the month, while with the Plan It option, you can split up payments for purchases over $100 for a fixed monthly fee and no interest charges. Both options can be accessed through the American Express app.

Additional card benefits

  • Free shipping through complimentary ShopRunner membership
  • Car rental loss and damage insurance
  • Purchase protection
  • Global Assist® hotline
  • Entertainment access to concerts, sporting events
  • Guaranteed low hotel rates if booked at amextravel.com
  • Terms Apply

To see rates & fees for American Express Cash Magnet® Card – $150 Welcome Offer please click here.

American Express Cash Magnet® Card – $150 Welcome Offer cons

Low cash back rate. There are other cashback cards that offer a more generous cashback rates on purchases for no annual fee.

Foreign transaction fee. There is a fee of 2.7% of each transaction after conversion to US dollars. If traveling abroad, it’s best to use a card that doesn’t assess you a fee for purchases.

Excellent/Good credit required. If your credit score isn’t in solid shape, the odds of being approved for this card are low.

Limited rewards redemption options. You can’t spend your rewards on travel, gift cards or merchandise, unless American Express runs a promotion for card members allowing additional redemption options. You also can’t spend them at the American Express Membership Rewards® website. Your rewards only come back as a statement credit.

Compare it with the Chase Freedom Unlimited®

Chase Freedom Unlimited®

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(175)
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on Chase's secure site

  • 0% Intro APR for 15 months on purchases

  • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.

  • 14.99% - 23.74% Variable

Highlights
  • Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
  • Earn unlimited 1.5% cash back on all other purchases.
  • Earn 5% on travel purchased through Chase, 3% on dining at restaurants and drugstores, and 1.5% on all other purchases.
  • No annual fee
  • 0% Intro APR for 15 months from account opening on purchases, then a variable APR of 14.99 - 23.74%.
  • No minimum to redeem for cash back. Cash Back rewards do not expire as long as your account is open

See additional details for Chase Freedom Unlimited®

More Info

Another $0 annual fee cash back rewards credit card to consider is the Chase Freedom Unlimited®. It offers a more generous and easy-to-meet welcome offer, as well as a higher cash back rate on U.S. supermarket purchases.

Here’s how the two cards stack up side by side.

American Express Cash Magnet® Card – $150 Welcome Offer vs. Chase Freedom Unlimited

 American Express Cash Magnet® Card – $150 Welcome OfferChase Freedom Unlimited®
Annual fee$0$0
Welcome bonus$150 statement credit after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
Rewards ratesEarn unlimited 1.5% cash back on your purchases.Earn 5% cash back on travel purchased through Chase, 3% on dining and drugstores, and 1.5% on all other purchases.
Purchase intro rate0% on purchases for 15 months0% Intro APR for 15 months
Purchase APR13.99%-23.99% variable14.99% - 23.74% variable
Foreign transaction fees2.7% of each transaction after conversion to US dollars.3% of each transaction in U.S. dollars.

In addition to the elevated rewards rate, the Chase Freedom Unlimited® also offers the following benefits:

  • DoorDash membership. Complimentary three-month membership to DashPass from DoorDash, which must be activated by Dec. 31, 2021.
  • Cash back with Lyft. Earn a total of 5% cash back on Lyft rides through March 2022.
  • Purchase and warranty protections. New purchases are covered against damage or theft for 120 days, up to $500 per claim and $50,000 per account. Plus, receive an additional year of protection beyond the original manufacturer’s warranties of three years or less.

Chase Freedom Unlimited® rewards can be redeemed for cash, gift cards, travel or products and services. You can also use your points to pay for all or part of purchases at participating Chase Pay merchants.

Which card is best for me?

The American Express Cash Magnet® Card – $150 Welcome Offer and the Chase Freedom Unlimited® both have a similar unlimited cashback rewards rate on purchases for a $0 annual fee, as well as generous interest-free intro purchase offers.

The Chase Freedom Unlimited® has a more enhanced rewards-earning scheme that can help save you more — plus, the Chase Freedom Unlimited®’s spending requirement is much less to earn a higher sign-up bonus.

However, if you also have the Blue Cash Preferred® Card from American Expresss, which offers a higher cash back rewards rate in different categories, it may sense to pair that with the American Express Cash Magnet® Card – $150 Welcome Offer to use for all other purchases.

  • $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.*

  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases.

  • 1% back on other purchases*

Highlights
  • Earn a $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
  • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%).
  • 6% Cash Back on select U.S. streaming subscriptions.
  • 3% Cash Back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more).
  • 1% Cash Back on other purchases.
  • Low intro APR: 0% for 12 months on purchases from the date of account opening, then a variable rate, 13.99% to 23.99%.
  • Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee.
  • Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.
  • $95 Annual Fee.
  • Terms Apply.
  • See Rates & Fees

See additional details for Blue Cash Preferred® Card from American Express

More Info


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