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.

If you’re looking to save on interest charges to finance a large purchase or expense, the American Express Cash Magnet® Card has an attractive 0% intro APR period that lasts for more than a year.

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

• Easy to earn welcome bonus

  New cardholders can earn a $200 back after spending $2,000 or more in purchases with your card within the first 6 months of card membership.

• Generous intro APR offer on purchases

  If you’re looking to save on interest charges while paying off a large purchase over time, 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).

• Simple flat-rate cashback rewards program

  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.

• No annual fee

  This card comes with a $0 annual fee.

• Optional repayment program

  With the American Express Cash Magnet® Card, you can choose the Plan It plan. Pay 0% interest on each purchase moved into a plan during the first 15 months after account opening. After that, your plan fee will be up to 1.33% of each purchase moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase and other factors.

• Low cashback rate

  While cashback earnings are unlimited, 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 another card that doesn’t assess you a fee for purchases.

• Reserved for applicants with stellar credit scores

  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

  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 to the Chase Freedom Unlimited®

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Chase Freedom Unlimited^®

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Chase Freedom Unlimited^®

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Intro Purchase APR 0% Intro APR on Purchases for 15 months

Regular Purchase APR 14.99% - 24.74% Variable

Annual Fee $0

Rewards Rate Earn 5% on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.… Read More

Highlights

• $200 Bonus after you spend $500 on purchases in your first 3 months from account opening.
• 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
• 3% cash back on dining at restaurants, including takeout and eligible delivery services
• 3% cash back on drugstore purchases
• 5% on travel purchased through Chase Ultimate Rewards®
• Unlimited 1.5% cash back on all other purchases
• 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 14.99% - 24.74%.
• No annual fee.

Typical Credit Needed

680 850

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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.

New cardholders can 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. Earn 5% on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores, and 1.5% on all other purchases.

The Chase Freedom Unlimited® has boasts a generous intro APR offer of 0% Intro APR on Purchases for 15 months, after which an APR of 14.99% - 24.74% variable will apply.

There is also a 0% Intro APR on Balance Transfers for 15 months. After the intro period ends, the regular APR will be 14.99% - 24.74% variable. The balance transfer fee is either $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days. Then, either $5 or 5% of the amount of each transfer, whichever is greater.

The Chase Freedom Unlimited® does have a slightly higher foreign transaction fee of 3% of each transaction in U.S. dollars, so again, it’s best to bring a card on your travels that doesn’t assess this fee.

In addition to the elevated rewards rate, the Chase Freedom Unlimited® also offers a complimentary 3-month DashPass membership from DoorDash, which must be activated by Dec. 31, 2021. Also, earn a total of 5% cash back on Lyft rides through March 2022. Plus, 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.

The American Express Cash Magnet® Card and the Chase Freedom Unlimited® both come with a $0 annual fee, as well as generous interest-free intro purchase offers.

However, 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 Express, 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.

To see the rates and fees for American Express Cash Magnet® Card, please click here.