American Express Cash Magnet® Card Review

Do you like earning cash back on everything from groceries and gas to restaurants and rent? Do you like not having to choose categories to earn elevated rewards each quarter? The American Express Cash Magnet® Card might be for you.

This card offers a simple, unlimited flat-rate cash back rewards program, $0 annual fee and intro offers on both new purchases and balance transfers. There’s also the potential to get an instant credit card number, making it perfect for financing a large purchase in a pinch.

However, you’ll find many cash back cards with better rewards rates. You can also find cards with longer intro periods for balance transfers and purchases, if that’s your goal. Plus, American Express cards aren’t as widely accepted as Visa® and Mastercard®, especially overseas.

• Easy to earn welcome offer

  There’s a welcome offer of $200 back after spending $2,000 or more in purchases with your card within the first 6 months of card membership. redeemable for statement credits. You’ll need to spend just over $330 a month on your card to earn it.

  This might seem like a high spending requirement, but a LendingTree study did find that Americans spend an average of $260 a week on groceries. So if you switch to this card for grocery spending, you could earn the welcome offer in just a few months.

• Long intro APR on purchases and balance transfers

  If you have a large expense coming up, like a medical bill or new furniture, the American Express Cash Magnet® Card offers a 0% introductory APR for the first 15 months from the date of account opening on purchases, after which an APR of 19.24% to 29.99% variable applies. It’s a longer time frame than most intro offers, which are usually 12 months.

  This means you can make your purchase now and pay for it over the next year without paying interest during the intro offer period — that’s a good deal considering you also earn cash back on purchases.

  The same intro APR applies for balance transfers: 0% introductory APR for the first 15 months from the date of account opening on balance transfers requested within 60 days of account opening Then an APR of 19.24% to 29.99% variable. This is a great way to gain traction on paying off high interest debt; however, you’ll need to transfer your balance within 60 days of account opening, but initiate the transfer as soon as you can to reduce the amount of interest you pay.

  Tip: Divide the cost by the number of months in the promotion so you know how much you’ll need to pay each month and avoid paying interest.

• Flat-rate cash back rewards

  The flat-rate cash back rewards program is great if you value simplicity: With the American Express Cash Magnet® Card, you earn an Unlimited 1.5% Cash Back on your purchases. There are no quarterly bonus categories to remember or sign-up for, nor are there different rates of cash back for various categories — and you can easily redeem your rewards as a statement credit.

• Optional repayment program

  Need more time to pay for large purchases? With the American Express Cash Magnet® Card you can use Plan It to be put on a monthly payment plan. You’ll get a $0 fee for purchases placed on the plan during the first 15 months after account opening. After that, you’ll get a fee up to 1.33%, depending on the purchase, the plan duration, the APR that would otherwise apply and other factors.

• Instant card numbers

  If American Express is able to instantly authenticate you, you may get an instant card number. This allows you to immediately make purchases while you wait for your physical card to come in the mail. You may be limited to a portion of your credit line until your card arrives, but this can be helpful if you have a car repair and no emergency fund to fall back on.

• So-so cash back rate

  The card’s cash back rate isn’t bad for those who like simplicity. Still, you can find cash back credit cards with higher cash back rates on purchases — that includes other flat-rate cards like the Wells Fargo Active Cash^® Card and the Citi Double Cash^® Card.

• Limited rewards options

  Unless there’s a promotion, the cash back rewards that you earn with the American Express Cash Magnet® Card are only available as a statement credit, which does keep things simple. However, if you prefer gift cards, travel or online shopping, check out these rewards credit cards.

• Foreign transaction fee

  When your travels take you outside of the United States, leave this card at home — the foreign transaction fee is 2.7% of each transaction after conversion to US dollars.

• Reserved for applicants with exceptional credit scores

  To be approved for the American Express Cash Magnet® Card you’ll need a credit score that’s considered Good / Excellent. So if your credit isn’t in great shape, spend some time improving your credit score before applying.

American Express Cash Magnet® Card vs. Citi Double Cash^® Card

The Citi Double Cash^® Card is a better $0-annual-fee option for cash back rewards and balance transfers.

You can earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel. And while you’ll need to pay at least the minimum due to earn your rewards, it’s always best if you can pay off your credit card each month. Rewards can be redeemed in a variety of ways, including statement credits, transfers to hotel and airline partners, gift cards and more.

While there isn’t an intro offer for new purchases, you can still get a 0% intro APR for 18 months on Balance Transfers. After that, a 18.24% - 28.24% (Variable) APR applies. This offer is a few months longer than that offered by American Express Cash Magnet® Card, which is helpful if you’re trying to pay off credit card debt.

American Express Cash Magnet® Card vs. Chase Freedom Unlimited^® card

The Chase Freedom Unlimited^® is similar to the American Express Cash Magnet® Card in that it offers a flat rate on most purchases for a $0 annual fee. However, it has the edge over the American Express Cash Magnet® Card, as it gives you a higher rate on certain purchases, including restaurants and drugstores.

Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.

If you spend a combined $300 a month at restaurants and drugstores, you’ll earn an extra $4.50 a month with the Chase Freedom Unlimited^®. Over a year, that’s $54 — which may not be life-changing but could cover for your next drive-thru meal.

The Chase Freedom Unlimited^® card is good if you need to do a balance transfer because it offers a 0% Intro APR on Balance Transfers for 15 months. After the intro period ends, the regular APR will be 18.99% - 28.49% Variable. There’s a balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater.

The American Express Cash Magnet® Card is a solid, no-frills rewards card and a good option if you want to get into the American Express ecosystem. It could also work if you want to carry just one card and log in to your account once a month to redeem your cash back. However, if you want to earn the most rewards possible, it may not be the best American Express credit card for you. You’ll need to consider whether the rewards fit your spending habits, or if a bonus category card (like the Blue Cash Preferred^® Card from American Express) is a better fit.

And if you don’t mind a bit more effort, you could earn better rewards with a card that offers elevated earnings in rotating or select categories. In addition, the best credit cards tend to offer better redemption options, including bonus points for redemptions through their travel portals.