American Express Cash Magnet Card – Full Review [2020]

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American Express Cash Magnet Card – Full Review [2020]

U.P. Rating ? The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.

"Unlimited 1.5% Cash Back"

Earn consistent cash-back with no caps or changing categories to track.

Apply Now (at Amex's secure site)

Those who are looking for a simple and straightforward cash-back credit card will love the Amex Cash Magnet card. With no annual fee to worry about and no bonus categories to fuss over, you can have the peace of mind knowing that you’re earning cash-back rewards on every purchase — without needing to pay anything out of pocket.

Pros

  • 1.5% cash-back on all other purchases
  • No annual fee
  • Rental car insurance

Cons

  • 3% foreign transaction fees
  • No category specific bonus categories

Amex Cash Magnet Card — Snapshot

  • Welcome Bonus & Info (Partner Content)
    • Earn a $150 statement credit after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.
    • Unlimited 1.5% Cash Back on your purchases.
    • Low intro APR: 0% for 15 months on purchases from the date of account opening, then a variable rate, currently 13.99% to 23.99%.
    • Plan It® gives the option to select purchases of $100 or more to split up into monthly payments with a fixed fee.
    • Amex Offers rewards you at places you like to shop, dine, travel, and more. You can add as many Offers as you’d like to your Card, then just use that Card to pay, and enjoy rewards directly on your statement.
    • Cash Back is received in the form of Reward Dollars that can be redeemed for statement credits.
    • No Annual Fee.
    • Terms Apply.
    • See Rates & Fees
  • Card Categories:
  • Customer Service Number
    800-528-4800
  • Login Link
  • Related Articles

The Ideal Cardholder

Get Cash Back 1
With the Amex Cash Magnet card, you’ll earn 1.5% cash-back on every purchase you make. Image Credit: pathdoc via Shutterstock

The Amex Cash Magnet card is a perfect fit for anyone looking for a no-fuss cash-back card that offers great benefits and does not charge cardholders an annual fee.

Pay It Plan It

Amex Cash Magnet cardholders have access to 2 unique features, Pay It and Plan It.

With the Pay It feature, you can cover small purchase amounts (less than $100) right away using the American Express app. By paying for these charges right away you can help keep your balance down, instead of waiting for them to be added to your monthly statement.

With Plan It, you can split up larger purchases (over $100) into monthly payments with a fixed fee. When you select a charge that you want to apply to Plan It, you’ll receive plans for 3-, 6-, and 12-month payment plans. With each plan, you’ll see your required monthly payment, the total plan fee, and the total amount paid.

Rental Car Insurance

When you use your Amex Cash Magnet card to pay for your rental car you can be covered for any damage or theft to the vehicle while it is in your possession. Keep in mind that this is secondary rental insurance, so it will only kick in after for anything not covered by your primary car insurance.

Great Card if

  • You want a simple cash-back card
  • You want a card with no annual fee

Don't Get if

  • You want a card that offers travel benefits
  • You want a card that offers bonus categories
  • You want a card that earns flexible rewards

Amex Cash Magnet Card — Fees

  • Annual Fee
    • $0
  • Foreign Transaction Fees
    2.7% of each transaction after conversion to U.S. dollars.
  • Interest Rates
    • 0% on purchases for 15 months, from account opening
    • Ongoing APR: 13.99%-23.99% variable
  • Late fees
    • Penalty APR: 29.24% variable
    • Fee: Up to $40
  • Cash Advance APR
    • 25.24% variable
    • Fee: Either $10 or 5% of the amount of each cash advance, whichever is greater.
  • Additional Info

How to Earn More Cash-Back

Get Cash Back
Use your Amex Cash Magnet card for all of your purchases and watch your cash-back rewards pile up! Image Credit: kenary820 via Shutterstock

Daily Purchases

Since the Amex Cash Magnet card does not have any bonus categories and instead earns an uncapped 1.5% back on every purchase you make, the best way for you to earn more cash-back is to make sure your use your card everywhere it is accepted. This way, you’re effectively getting a 1.5% discount on every purchase.

Amex Offers

All American Express cards come with dozens of monthly Amex Offers that allows cardholders to receive discounts and deals with many different merchants. Each month, you can add the offers that seem the most appealing to your card, and then earn extra cash-back or statement credits when you shop there and use your Amex Cash Magnet card to pay.

Authorized Users

If you add your significant other or a family member to your Amex Cash Magnet account, you will earn cash-back for all of the purchases they make with the card. This can help to double the amount of cash-back you earn if each of you has similar monthly expenses.

Refer-a-Friend Bonus

When you refer a friend or family member to apply for the Amex Cash Magnet card, you’ll receive a cash-back bonus if they’re approved for the card.

To send out a referral, visit the Refer-a-Friend website and log in using your Amex username and password (or your credit card information).

Adding Additional Amex Cash-Back Cards

If you want to optimize the total amount of cash-back you’re able to earn, it might make sense for you to carry more than 1 cash-back credit card.

Take the Blue Cash Everyday® Card from American Express for instance, which earns 3% cash-back at supermarkets (up to $6,000 in purchases per year), 2% cash-back at select department stores, 2% cash-back at gas stations, and also charge no annual fee.

With a 2-card setup of the Blue Cash Everyday card and the Amex Cash Magnet card in your wallet, you could use the Blue Cash Everyday card for its bonus categories at supermarkets, gas stations, and department stores, and the Amex Cash Magnet card to earn 1.5% back on all purchases outside of those categories — all without paying any annual fees.

Best Way to Redeem Cash-Back

With the Amex Cash Magnet card, your only redemption option for your cash-back from your card is in the form of a statement credit, and only in increments of $25. Meaning if your current cash-back balance is $15, you’ll have to wait until you’ve earned $25 before you can cash it out. Keep in mind that you cannot use your cash-back to pay your minimum monthly payment.

Alternative Cards to the Amex Cash Magnet Card

Chase Freedom Unlimited® Card

If you’re in the market for a no annual fee cash-back credit card that offers at least 1.5% back on all purchases, then you should definitely consider the Freedom Unlimited card. It also earns 5% back on travel purchased through the Chase Travel Portal, and 3% back on dining and drugstore purchases.

Blue Cash Preferred® Card from American Express

If you’re looking for a cash-back card that optimizes for the categories you spend the most on, and you’re comfortable paying an annual fee, then the Blue Cash Preferred card might be just the card for you. The Blue Cash Preferred card earns a massive 6% cash-back at supermarkets (on up to $6,000 in purchases), 6% cash-back on select streaming services (like Netflix, Hulu, and Spotify), and 3% cash-back on transit purchases.

Hot Tip: We’ve also compared the Blue Cash Everyday Card vs. Amex Cash Magnet Card. These 2 cards earn cash-back on common everyday purchases, but which is best for you? Find out in our detailed comparison.


Frequently asked questions

What is the annual fee on the American Express Cash Magnet card?

The Amex Cash Magnet card does not charge an annual fee.

Does the Amex Cash Magnet card charge foreign transaction fees?

Yes, the Amex Cash Magnet card charges a 2.7% fee on all foreign transactions. You’ll want to choose another card to pay with when traveling outside of the U.S.

What is the credit limit for the Amex Cash Magnet card?

Those who are approved for the Amex Cash Magnet card will have their credit limits set based on their credit score, years of credit history, stated income, and the amount of credit that American Express has (or has not) extended to you already. But generally speaking, those who are approved for the card usually receive a credit limit of at least $3,000.

Does the Amex Cash Magnet card offer extended warranty protection?

No, the Amex Cash Magnet card does not offer cardholders extended warranty protection on items purchased with the card.

Does the Amex Cash Magnet card offer purchase protection?

No, the Amex Cash Magnet card does not offer cardholders purchase protection on items purchased with the card.

Which is better: the Amex Cash Magnet vs. the Blue Cash Everyday card?

Neither card is necessarily better than the other. What matters is which card is a better fit for you. Neither card charges an annual fee, and the Blue Cash Everyday card is more rewarding for purchases that fall within the supermarket, gas station, and department store categories, while the Amex Cash Magnet card is more rewarding for all other purchases outside of those 3 categories.

So if you’re someone who has a high level of spending at supermarkets, gas stations, and/or department stores, then the Blue Cash Everyday card would probably be a better fit for you. If your spending patterns are more varied, then you might want to consider the Amex Cash Magnet card.

What credit score is needed for the Amex Cash Magnet card?

While there is no set credit score required in order to be approved for the Amex Cash Magnet card, you should generally feel pretty good about your approval odds as long as your credit score is at least 700.

With that said, your application decision will be based on your full credit report. This includes your credit score, your stated income, and the number of years of credit history you have.

Jarrod West

About Jarrod West

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