Why we like this card: It offers a flat cash back rate on all purchases, so you don't have to worry about the hassle of keeping track of and activating bonus spending categories. So this card is ideal for those looking for a basic rewards card without annual fees.
Pros
- No annual fee
- Flat cash back rate
- Attainable new-cardmember bonus
Cons
- Charges foreign transaction fees
- Limited redemption options
- Few card benefits
American Express Cash Magnet® Card: Overview
Intro APR: 0% for the first 15 months from the date of account opening. After that, your APR will be 19.24%–29.99% variable
APR
- Purchase: 19.24%–29.99% variable
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Balance transfer: 0%, APR for the first 15 months from the date of account opening on balance transfers requested within 60 days of account opening. After that, your APR for those transactions and any other balance transfer requests, will be 19.24%–29.99% variable
- Balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater
- The minimum balance transfer amount is $100. The maximum is less than your credit limit, but may not be more than $7,500.
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Cash advance: 29.99%
- Cash advance fee: Either $10 or 5% of the amount of each cash advance, whichever is greater
- Penalty: 29.99% variable, this APR may be applied to new transactions on your account if you make one or more late payments; or your payment is returned by your bank
Annual fee: $0
Foreign transaction fee: 2.7% of each transaction after conversion to US dollars
Late payment fee: up to $40
Returned payment fee: up to $40
Whether you're looking for a basic rewards credit card or want to take advantage of a low APR for a major purchase or balance transfer, the American Express Cash Magnet® Card could be a worthwhile option for you. With a $0 annual fee, it offers a flat cash back rate on all purchases, and there’s no limit on how much you can earn in rewards.
Plus, it offers new cardmembers 15 months at 0% APR on purchases and balance transfers completed within the first 60 days of opening an account, giving you more than a year to make payments without interest.
However, the card isn't particularly useful if you travel often. It charges foreign transaction fees, and it lacks the travel benefits that other cards offer.
American Express Cash Magnet® Card: Rewards
Using the Cash Magnet Card to earn rewards is simple: you'll earn an unlimited 1.5% cash back on every purchase you make. The only transactions you won't earn rewards on are the following:
- Balance transfers
- Cash advances
- Purchases of traveler's checks
- Purchases of prepaid cards or reloading card balances
- Person-to-person transfers, such as Venmo transactions
One important thing to note: American Express doesn't allow cardholders to earn rewards during a billing period if the cardmember hasn't paid the minimum payment due by the due date.
Does American Express Cash Magnet® Card offer a new customer bonus?
If you are a new customer, you can qualify for a $200 statement credit if you spend $2,000 in the first 6 months of card ownership. Once you've reached the spending threshold, American Express will credit the $200 to your account as a statement credit. However, it can take eight to 12 weeks after reaching the spending requirement to receive the credit.
The bonus on the American Express Cash Magnet® card is relatively low—it's possible to find cards without annual fees that offer higher bonus amounts—but the bonus offer gives customers more time to reach the spending threshold.
Many cards require cardmembers to reach the spending threshold within three months, so unless you spend a significant amount of money each month with your card, you're unlikely to reach the spending requirement.
With the American Express Cash Magnet® card, you have six months to reach the spending threshold. Even if you only use the card for routine expenses, such as utility bills, streaming services, gas for your car or groceries, you could likely reach the spending requirement within six months and earn the $200 cash back bonus.
How to redeem American Express Cash Magnet® Card cash back rewards
If you have the American Express Cash Magnet® card, you can redeem your cash back rewards for statement credits to your account.
There is no minimum required to redeem rewards. Rewards will be in the form of a statement credit of $1 for every reward dollar you redeem. For example, if you have 50.50 reward dollars, you can redeem those rewards for a $50.50 statement credit.
Statement credits will be applied to your account within three days, but statement credits cannot be used toward the minimum amount due. Unless the statement credit reduces your balance to $0, you're still required to make the minimum payment.
Additional benefits
Compared to the benefits of other credit cards, the American Express Cash Magnet® Card is more limited. However, it does offer the following perks:
- American Express Experiences: With American Express Experiences, you get access to exclusive ticket pre-sales and cardmember-only events. Events include major Broadway shows, concerts, and sport competitions.
- Car rental loss and damage insurance: When you use the Amex Cash Magnet Card to pay for your entire car rental cost and decline the rental company's collision damage waiver, you automatically receive secondary coverage against damage or theft of the rental vehicle.
- Global assist hotline: If you are traveling 100 miles or more from home, you can use the Global Assist Hotline to get emergency assistance, including medical referrals, emergency cash wires and missing luggage services. However, you are responsible for paying for the charges of any third-party service provided.
- Plan It: On purchases of $100 or more, you can take advantage of Amex's Plan It feature. It allows you to split purchases into equal monthly payments at a fixed fee—similar to how buy now, pay later apps work.
Is the American Express Cash Magnet® Card right for you?
The American Express Cash Magnet® Card is best for those who are looking for a simple and easy-to-use card they can use for all of their purchases. With no annual fee and 1.5% cash back on every purchase, it's a no-frills, no-hassle addition to your wallet.
But if you love to travel, you'll likely need another credit card. Other options offer more comprehensive travel benefits, such as reimbursing you for TSA PreCheck fees or travel interruption/cancellation insurance, and you can find other cards that don't charge foreign transaction fees.
Credit cards similar to American Express Cash Magnet® Card
If the American Express Cash Magnet® Card isn't the best choice for you, consider these alternatives:
Amex Blue Cash Everyday vs. American Express Cash Magnet® Card
The Blue Cash Everyday® Card from American Express is similar to the American Express Cash Magnet® Card in its fees and APR offers, but it has a different rewards structure. With this card, you'll earn:
- 3% cash back on up to $6,000 spent on groceries per year
- 3% cash back on up to $6,000 spent on U.S. online retail purchases per year
- 3% cash back on up to $6,000 spent at gas stations per year
- 1% cash back on all other purchases
If you tend to spend more money in select categories, such as groceries or online retail purchases, the Blue Cash Everyday® Card from American Express may be a better fit.
Discover it® Cash Back Credit Card vs. American Express Cash Magnet® Card
Like the American Express Cash Magnet®, the Discover it® Cash Back Card doesn't have an annual fee. But it has a very different rewards system than the Amex card; rather than earning a flat cash back rate, you can earn 5% cash back on up to $1,500 in combined quarterly purchases in various categories throughout the year (then 1%).
It takes a little more work to take advantage of rotating spending categories. But if you tend to spend money in the different categories—such as restaurants, Amazon purchases or gas—you could earn more cash back rewards with the Discover it® Cash Back card. Plus, Discover will match all of the cash back you earned during your first year as a cardmember.
Frequently asked questions
Is the Amex Cash Magnet Card hard to get?
American Express doesn't disclose its minimum credit score requirement for its cards. But generally, you need to have good credit—according to Equifax, that means you need a score of 670 or higher—to qualify for the Amex Cash Magnet Card or other American Express cards.
Amex does have a card pre-qualification tool you can use to find out the likelihood of getting approved without affecting your credit score.
What is the limit on the Amex Cash Magnet Card?
Some cards list their minimum spending limit in their terms and conditions, but American Express doesn't list the minimum for the Cash Magnet Card. However, card users reported limits as low as $1,000. Others reported significantly higher limits, with some receiving limits over $10,000.
Is Amex Cash Magnet a metal card?
Unlike the American Express Platinum Card, which is a metal card with a heavier weight than most cards, the American Express Cash Magnet® is a standard plastic credit card.
Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.
Fortune Recommends™ credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
