American Express Cash Magnet Card Credit Card Review
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 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 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.
- American Express Cash Magnet® Card pros
- American Express Cash Magnet® Card cons
- Compare it with the Chase Freedom Unlimited®
- Which card is best for me?
American Express Cash Magnet® Card 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, which can be redeemed as a statement credit.
Easy-to-earn welcome offer. Earn a $200 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 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, 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 (enrollment required)
- 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
American Express Cash Magnet® Card 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®
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 vs. Chase Freedom Unlimited
| American Express Cash Magnet® Card | Chase Freedom Unlimited® | |
|---|---|---|
| Annual fee | $0 | $0 |
| Welcome bonus | $200 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. And earn 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year. |
| Rewards rates | Earn 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 rate | 0% on purchases for 15 months | 0% Intro APR for 15 months |
| Purchase APR | 13.99%-23.99% variable | 14.99% - 23.74% variable |
| Foreign transaction fees | 2.7% 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 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 to use for all other purchases. Cash back earned with the Blue Cash Preferred® Card from American Express, as with the American Express Cash Magnet® Card, can be redeemed as a statement credit.
To see rates & fees for Blue Cash Preferred® Card from American Express please click here.
The information related to the American Express Cash Magnet® Card has been independently collected by CompareCards and has not been reviewed or provided by the issuer of this card prior to publication.Terms apply to American Express credit card offers. See americanexpress.com for more information.
