American Express Cash Magnet Card Review: Not Exactly the Cash-Back Champion

Overview of the American Express Cash Magnet Card

For those who value simplicity, the American Express Cash Magnet® card stands out as one of the most straightforward options, offering a flat 1.5% cash back on all purchases. There are no complicated bonus categories to remember or points to decipher for redemption. However, there are superior alternatives if you aim to maximize your rewards. Card Rating*: ⭐⭐⭐

*Card rating reflects the opinions of TPG's editors and is not influenced by the card issuer.

It’s a pleasure when credit card rewards are straightforward. Spend on a variety of items and watch the rewards accumulate. This is true for many cash-back cards, including the Amex Cash Magnet.

For those seeking a no-fuss card to simplify their wallet, the Cash Magnet can be a practical choice. However, it isn't the most rewarding cash-back card, so exploring other options might be beneficial.

This card carries no annual fee and is best suited for those with a recommended credit score of 670.

Let’s delve deeper into the Amex Cash Magnet.

The information regarding the Amex Cash Magnet Card has been gathered independently by Dinogo. The details presented on this page have not been reviewed or provided by the card issuer.

Pros and Cons of the Amex Cash Magnet

Welcome Offer for Amex Cash Magnet

New cardholders of the Amex Cash Magnet will earn a $200 statement credit after making $2,000 in purchases within the first six months. This is a solid welcome bonus for a card with no annual fee.

In fact, this welcome offer is quite comparable to those found on many no-annual-fee cash-back cards.

Benefits of the Amex Cash Magnet

This card offers a range of advantages as part of the American Express network. For no annual fee, cardholders can access several valuable benefits, including:

• Car Rental Loss and Damage Insurance: You'll get secondary coverage for rental cars when you forgo the collision damage waiver at the rental counter and pay with your card.
• Global Assist Hotline: Available 24/7 to help with your travel arrangements.
• Amex Offers: Earn extra rewards on select purchases through targeted offers from Amex.

Moreover, as an Amex cardholder, you can take advantage of the Plan It® program, which enables you to break down purchases of $100 or more into monthly payments. Eligibility is based on your credit history, and if approved, you can manage your plan through the American Express app.

Enrollment is necessary for certain benefits; terms apply.

Earning Cash Back with the Amex Cash Magnet

A standout feature of the Cash Magnet is its unlimited cash-back offer. With this card, you earn 1.5% cash back on all purchases, with no restrictions.

You won't have to worry about tracking bonus categories or remembering spending limits.

A downside is that other cards with bonus categories can enable you to earn significantly more cash back compared to this card's flat earning rate.

This card is ideal for those who prefer a simple cash-back process, though it may not offer the best value for every transaction.

How to Redeem Cash Back with the Amex Cash Magnet

Cash Magnet cardholders earn cash back in the form of 'Reward Dollars,' which can be used for statement credits or at Amazon.com checkout.

Keep in mind that this card does not allow you to earn or redeem Amex Membership Rewards points, which could be a drawback if you're interested in redeeming rewards for travel, as noted by TPG credit cards editor Emily Thompson.

What are the competitors to the Amex Cash Magnet?

While simplicity has its advantages, there are superior cash-back options available.

• For a higher earning rate: The Citi Double Cash® Card stands out with a generous 2% cash back on all purchases (1% at purchase, 1% when you pay your bill). Plus, cardholders can convert their cash back into ThankYou Points through another qualifying Citi card. For more information, check out our full review of the Double Cash.
• If you prefer bonus categories: The Chase Freedom Unlimited® matches the 1.5% cash back on purchases, but also offers 5% back on travel booked through Chase Travel℠ and 3% on dining and drugstores. You can convert your cash back to Chase Ultimate Rewards points with the right card combination. Learn more in our full review of the Freedom Unlimited.
• If you're open to an annual fee: The Blue Cash Preferred® Card from American Express might be worth considering. It has a $0 introductory annual fee for the first year, then $95 annually thereafter. This card earns 6% cash back at U.S. supermarkets (up to $6,000 in spending annually, then 1%) and select U.S. streaming subscriptions, 3% back at U.S. gas stations and transit, and 1% on all other purchases. For further details, see our full review of the Amex Blue Cash Preferred.

For more alternatives, take a look at our complete list of the best cash-back cards.

Is the Amex Cash Magnet a good choice?

The Amex Cash Magnet is a solid pick for earning cash back on your everyday purchases. However, there are numerous superior cash-back credit cards available, so it's wise to explore your options before making a decision.

Summary

Although the Amex Cash Magnet offers a straightforward approach, its earning potential falls short compared to its competitors. You can still derive some good value from this card, but if your aim is to find a no-annual-fee cash-back card, there are better choices than the Amex Cash Magnet.