American Express Cash Magnet® Card
The American Express Cash Magnet® Card is an easy-to-use, flat rate rewards card with no annual fee and a modest rewards rate of 1.5% cash back on all purchases.
The appeal of this card is its simplicity. There aren’t any rotating bonus categories or required enrollments, and the $150 welcome offer is pretty easily attainable after spending $1,000 in purchases within the first 3 months of card membership.
Here are the details
The Cash Magnet offers an unlimited 1.5% cash back on all of your purchases, and for 15 months you can take advantage of its 0% APR on purchases and balance transfers (14.49% – 25.49% variable after). The card also provides a $150 statement credit when you spend $1,000 within the first three months of Card Membership.
With the Cash Magnet, your rewards — which are redeemed as Rewards Dollars — won’t expire. Plus, you can redeem your Rewards Dollars for statement credits, merchandise or gift cards starting at $25.
You’ll have the option to either carry a balance or pay off your card in full every month, giving you the flexibility to spend and recover on your own terms. Furthermore, the 0% introductory APR for 15 months also applies to balance transfers, as long as the transfer is requested within the first 60 days of account opening (14.49% – 25.49% variable thereafter).
If you frequently travel internationally or plan to in 2019, keep this card at home. The Cash Magnet charges a 2.7% foreign transaction fee and American Express isn’t as widely accepted abroad as other cards (See Rates & Fees).
Is this card right for you?
If you’re looking for a simple rewards card that doesn’t require you to complete enrollment or track bonus categories, the Cash Magnet could be a good fit. Its 1.5% cash back is nothing to write home about, but the fact that it’s an American Express card does give it a leg up in regard to card acceptance within the United States.
The Cash Magnet is cardholder-friendly; its welcome offer statement credit can easily be achieved and Rewards Dollars (which never expire) can be redeemed in various forms, giving you easy optionality when you want to put your cash back rewards to use.
How much are the rewards worth?
As long as you spend $1,000 within your first three months of Card Membership, you’ll receive the $150 introductory bonus (which will appear in your account 6-8 weeks after you’ve met the $1,000 threshold). Some have reported seeing $200 bonuses advertised, but this offer is only available to select consumers.
The Cash Magnet’s unlimited 1.5% cash back, while not remarkable, makes it easy enough to earn Rewards Dollars. For example, if you spend $100 on gas each month, $200 on groceries and $150 on miscellaneous items, by the end of the year you’d earn $81 in Rewards Dollars.
Keep in mind, in order to redeem your Rewards Dollars, you must have accrued a balance of at least $25 in rewards.
How to use this card
To redeem your Rewards Dollars, log into your American Express account and select “Use Rewards Dollars.” You’ll get the most out of your Rewards Dollars if you redeem for a statement credit rather than gift cards or merchandise.
The Cash Magnet offers a Plan It® feature, which allows you to select a transaction, such as a big purchase, to pay off in monthly increments with a set monthly fee. As long as you pay your Adjusted Balance every month, you won’t be charged interest on the selected purchase.
The bottom line
The Cash Magnet is a decent choice for those looking for a flat rate cash back card with no annual fee. You won’t have to track bonus categories or activate rewards through enrollment, but there are cash back cards that offer higher rewards rates.
Lastly, the card’s 2.7% foreign transaction fee and American Express’ limited usability abroad makes it a subpar cash back choice for those who frequently travel internationally.
For rates and fees of the American Express Cash Magnet® Card, please click here.