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While it’s wise to avoid racking up credit card debt, paying with only cash or debit could be a costly mistake. If you’re making purchases without a rewards credit card, you’re basically throwing money away.
If you’re looking for a simple cash back card, the American Express Cash Magnet® Card may be for you. Offering a flat rate of 1.5% cash back on every purchase you make, you can quickly earn rewards on your regular purchases.
There’s no annual fee. While some other cards without annual fees skimp on introductory bonuses, the Cash Magnet Card allows you to earn an introductory bonus of $150 cash back if you spend $1,000 within the first 3 months of opening an account.
By becoming a cardholder, you’ll also get access to some nice benefits. Overall, it’s a good choice for someone who doesn’t want to keep track of different spending categories. Or, you can use it along with other rewards cards that offer more cash back on select spending categories to earn higher rewards.
We give the American Express Cash Magnet Card 4 out of 5 Stars because it offers solid rewards to cardholders who want a simple cash back card.
While the Cash Magnet Card offers valuable rewards and some nice benefits, other similar credit cards may offer more features or different benefits that are a better fit for you.
With this card, you’ll earn 1.5% cash back on every purchase you make.
|Introductory Bonus Offers|
You can earn rewards quickly by using the card for routine expenses, such as gas, groceries, or your cell phone bill. However, only use this card for purchases when you won’t earn more rewards in a particular spending category with a different card.
According to the U.S. Department of Agriculture, the average two-person family spends $609 a month on groceries under a moderate-cost lifestyle. If you used your Cash Magnet Card to pay for those groceries, you could earn over $100 a year in cash back rewards. Since groceries are a purchase you’d make anyway, that’s free money back in your pocket.
However, you should know that you can’t earn rewards for balance transfers, cash advances, or purchases of other cash equivalents. This is also true for most gift cards, although in some cases you may find that store gift cards count as regular purchases and will earn rewards.
Some readers report seeing a $200 bonus offer for spending $1,000 within the first 3 months. This appears to be a private offer only available to select applicants.
Statement credits are the primary redemption method, but you can also redeem your rewards for merchandise or gift cards.
We recommend sticking with statement credits as your redemption method to get the full value of your rewards ($1 in value per $1 of cash back rewards). You can redeem for statement credits whenever your rewards balance reaches $25 or more.
Gift cards will also provide you with the full value and they can be a good redemption method too, but they’ll take some time to arrive and then you’ll be limited to using them at the specified merchant. There may be occasional sales that provide even better deals, like a $50 Nike gift card for only $45 in rewards.
The one exception to that are general American Express gift cards, which provide less value for your rewards. These will always cost $4 more in rewards than they are worth; so a $25 Amex gift card will cost $29 in rewards; a $50 gift card will cost $54 in rewards, etc.
Redeeming your rewards for merchandise is always a bad idea. The items are vastly overpriced compared to ordinary retailers, and you’ll get a very bad value for your rewards.
For a no annual fee card, the Cash Magnet offers a few valuable benefits and perks.
To see more details from Amex, check out the benefit terms of the Cash Magnet Card.
Through the Amex Offers program, you’ll get access to extra reward opportunities from select retailers.
Just visit Amex Offers and click ‘Add to Card’ for the deals you want. Use your Cash Magnet Card as you normally would to complete the purchase. Your savings will appear as a statement credit later on, reducing how much you owe.
The deals are typically quite valuable; in some cases you can save up to $100 on select purchases.
Some of the current offers include:
|Merchant||Need to Spend||Cash Back||Maximum Savings|
|The Washington Post||$99||$50||50.5%|
As an American Express cardmember, you’ll get exclusive access to ticket presales and cardholder-only events. If you’re dying to see Elton John’s Farewell Yellow Brick Road tour or if you’re feeling more adventurous and want to see Monday Night Raw in person, the American Express Presale benefit can help you get there. Find eligible events near you on the American Express Experiences website.
American Express reserves a select number of seats at major events for cardholders. Use your card when you purchase tickets to get access to those reserved seats. Find out more on the American Express Seating site.
Entertainment Access allows you to get pre-sale tickets to sports, music, and cultural events, as well as some exclusive cardmember experiences. If you love the theater or live music and performances, this benefit can be very valuable to you.
When you enroll in ShopRunner, you’ll get free two-day shipping and returns with select retailers. It’s like Amazon Prime, but for more merchants and you don’t have to pay an annual fee since American Express is covering your membership cost.
Check out this article for more information on how the ShopRunner membership works.
If Amex can verify your identity, you may be given access to an instant card number you can use immediately after being approved.
This Instant Card Number can be used with any online retailer that accepts American Express. You may not have access to the full credit line until your physical card is verified.
The Instant Card Number will stop working as soon as you receive and verify your physical card.
If you’re traveling with relatives, the Destination Family benefits can be very helpful. Book a qualifying stay with your American Express card and you’ll get connecting or adjoining rooms at select resorts, free meals and stays for children, and special discounts and upgrades. There is a three-night minimum to qualify for Destination Family benefits.
If you find your hotel room being advertised for less than what you paid prior to check-in, you can be reimbursed for the difference. All stays must be booked through American Express Travel to qualify.
|Intro APR for Purchases & Balance Transfers||Purchase APR||Balance Transfer APR||Cash Advance APR|
|0% for 15 months||12.99–23.99% Variable||12.99–23.99% Variable||25.24% Variable|
|Annual Fee||Foreign Transaction Fee||Balance Transfer Fee||Cash Advance Fee|
|$0||2.7%||Either $5 or 3% of the amount of each transfer, whichever is greater.||Either $10 or 5% of the amount of each cash advance, whichever is greater.|
|Penalty APR||Late Fee||Returned Payment Fee|
|29.24% Variable||Up to $40||Up to $40|
There is no annual fee with the Cash Magnet Card.
The card does offer a long introductory APR for both new purchases and balance transfers, giving you time to pay off large expenses without worrying about interest charges. You’ll get 0% for 15 months after account opening. Once the introductory offer ends, your APR will increase to 12.99–23.99% Variable.
Late payments will face a fee of up to $38, and may also cause the penalty APR to be applied. That would cancel out any intro period as well, so be sure to make timely payments.
There is also a foreign transaction fee of 2.7%. Because of the fee and the fact that American Express isn’t accepted widely internationally, anyone traveling outside the country should look for a Visa or Mastercard with no foreign transaction fees.
You can view the terms and fees of the Cash Magnet card yourself as well.
Your credit limit is based upon your creditworthiness. American Express will review factors like your income and credit score when determining your limit.
Remember, you can request a credit limit increase. We recommend cardholders request an increase every 6 to 12 months if they want higher limits.
|American Express Customer Support|
American Express is well known for its excellent customer service. According to the most recent J.D. Power U.S. Credit Card Satisfaction Study, American Express is 2nd out of 11 issuers in 2018.
In the past, we’ve contacted American Express by phone and social media and have had positive experiences. Users can feel confident that they’ll get the help they need when they need it.
Every now and again, you may come across a representative who isn’t knowledgable about your issue. If that’s the case, don’t hesitate to ask for someone else or call again to speak to a different agent.
|American Express Twitter Support|
We’ve tweeted questions to @AskAmex previously and have been impressed with the speed and thoroughness of their replies. Just make sure you don’t share personal or account information on any social media channel.
The Cash Magnet Card from American Express is about as straightforward a rewards card as they come. With the ability to earn 1.5% cash back on all purchases and a decent introductory bonus, it’s a good option for users who want a simple cash back card.
Cardholders get a nice suite of perks, including travel and shopping protections and the Amex Offers benefit. For a card without an annual fee, that’s a fairly robust offering.
However, there are a number of other rewards cards that offer higher rewards or different benefits. If you have good to excellent credit, it could be worth shopping around to find a card better suited to your needs.
You can apply for the Cash Magnet Card securely on the American Express website. Most people can expect to receive an answer within seconds, but in some cases it could take longer.
If approved, you’ll get a notification and you may be given an instant card number to use. If you’re not approved, you’ll get a letter in the mail detailing why you were denied.
There are lots of cash back credit cards that offer a flat rate on all purchases. Like the Cash Magnet, most of them offer 1.5% cash back, but some have different features and benefits that may make them a better fit for you.
Like the Cash Magnet Card, the Double Cash offers a flat cash back rate. It’s a little higher than the Cash Magnet; you can earn 2% cash back with the Double Cash instead of 1.5%. You get 1% when you make a purchase, and another 1% when you actually pay for it.
However, the tradeoff for the higher cash back value is that there is no introductory bonus with the Double Cash Card.
The Double Cash offers some nice benefits that are similar to that of the Cash Magnet, but you’ll get a few more protections from the Double Cash.
Although the Cash Magnet Card offers a long introductory APR, the Citi Double Cash Card has an even longer offer: you’ll get 0% for 18 months on Balance Transfers. Once the term ends, your APR will increase to 13.99% – 23.99% (Variable).
The Double Cash’s introductory rate only applies to balance transfers, however.
There is no annual fee for the Citi Double Cash card, there is a foreign transaction fee of 3%. If you plan on traveling internationally, it’s probably a good idea to use other cards, like the one coming up next.
Read more in our Review of the Citi Double Cash Card
For a no annual fee card, the Capital One® Quicksilver® Cash Rewards Credit Card (Review) has a generous introductory bonus: spend $150 for spending $500 in the first 3 months after account opening. Plus, the card has some benefits that help enhance your cardmember experience.
|Introductory Bonus Offer|
Just like the Cash Magnet card, you’ll earn 1.5% cash back on all purchases, and there’s no cap on how much you can earn.
The introductory bonus is easy to earn. Use the card for normal purchases like gas or groceries, and you’ll quickly reach the $500 threshold to receive the bonus. That’s a 30% return on spend, better than the Cash Magnet Card’s introductory offer.
The Quicksilver Card has benefits that can come in handy when you’re shopping or traveling.
There is no annual fee with the Quicksilver card. It offers the same long intro APR as the Cash Magnet, which applies to new purchases and balance transfers: 0% for 15 months. After that, the Quicksilver card has a regular rate of 15.49% - 25.49% Variable.
There is no foreign transaction fee and it’s also a Mastercard, making it an excellent choice for international travel.
Read more in our Review of the Capital One Quicksilver Cash Rewards Credit Card
There’s another version of the Quicksilver card designed for people with fair or average credit, the Capital One® QuicksilverOne® Cash Rewards Credit Card (Review). It also offers 1.5% cash back but it has a smaller introductory bonus, and costs $39 per year.
|Introductory Bonus Offer|
You have more options for redeeming your cash back with the Freedom Unlimited card than you do with the Cash Magnet card. You can redeem it for statement credits, gift cards, travel expenses through the Ultimate Rewards portal, or at checkout with participating merchants. But, like the Cash Magnet, the best method is usually for statement credits (unless you can transfer the rewards to other Chase cards, where they might be more valuable).
The Freedom Unlimited card also offers a $150 bonus for spending $500 in the first 3 months, rather than the $1,000 you’d have to spend to earn the same amount with the Cash Magnet.
Unlike the Cash Magnet, there is no minimum for redeeming your rewards.
There are two levels to the Chase Freedom Unlimited: Visa Platinum and Visa Signature. If your credit limit is $5,000 or more, you’ll get a Visa Signature card which has some extra benefits. Otherwise you’ll get a Visa Platinum, with more basic benefits.
The terms are pretty similar to the Cash Magnet card. There is no annual fee. And, the Chase Freedom Unlimited offers an intro rate of 0% for 15 months for both purchases and balance transfers. After the promotional period is over, your APR will increase to 16.49% - 25.24% Variable.
There is a 3% foreign transaction fee, so it’s a good idea to only use this card for domestic purchases.
Read more in our Review of the Chase Freedom Unlimited Card
|Introductory Bonus Offer|
You’ll earn 1.5X miles per $1 spent on all purchases, which is typically the equivalent of 1.5% cash back. That’s the same cash back value that the Cash Magnet offers, even though you’re earning miles with this card.
You’ll get the full value of $1 per mile when redeeming for statement credits. And you can actually get more than $1 per mile when redeeming for gift cards, so they’re worth looking into.
Discover offers a valuable introductory offer as well. The company will double the total number of miles you earn in the first year, so you’ll basically earn 3X miles per dollar. That’s a unique offer that can help you rack up miles quickly. That comes to a cash back equivalent of 3% when redeeming for statement credits, and it could be more when redeeming for gift cards. But after that first year the rewards drop to a more typical level.
The Discover it Miles card doesn’t offer many benefits.
Like the Cash Magnet, there is no annual fee with the Discover it Miles Card. The Miles card offers a slightly shorter introductory APR offer for new purchases than the Cash Magnet; See Terms for See Terms. After that, the rate is See Terms.
While there is a balance transfer offer with the Discover card, it’s not a 0% APR offer, so it’s not very useful compared to the Cash Magnet’s promotion for balance transfers.
There is no foreign transaction fee, making it a decent option for travel compared to the Cash Magnet. However, keep in mind that Discover isn’t widely accepted outside the U.S. so it’s wise to carry a Visa or Mastercard with no foreign transaction fees.
Read more in our Review of the Discover it Miles Card
There’s another valuable card from Discover called the Discover it® Cash Back (Review). Like the Chase Freedom mentioned above, this card has 5% bonus categories on the first $1,500 in spending each quarter (activation required) that switch every 3 months (its categories are usually different than the Chase Freedom’s).
Are you looking for a new rewards card? See some other great card options in the Best Rewards Credit Cards.
Do you use the Cash Magnet Card from American Express? Let us know how you like it by leaving your own review below!
For rates and fees of the American Express Cash Magnet® Card, please click here.
Credit Card Insider receives compensation from advertisers whose products may be mentioned on this page. Advertiser relationships do not affect card evaluations. Advertising partners do not edit or endorse our editorial content. Content is accurate to the best of our knowledge when it's published. Learn more in our Editorial Guidelines.
The information related to American Express Cash Magnet® Card, Capital One® Quicksilver® Cash Rewards Credit Card, Discover it® Miles, and Discover it® Cash Back have been collected by Credit Card Insider and have not been reviewed or provided by the issuer or provider of these products.
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