AmEx Cash Magnet Review: No Longer Taking Applications
The Bottom Line
4.8
It's a solid option for those who prize simplicity in a rewards card. Just keep in mind that the redemption options are a bit limited.
Rates, fees and offers
Rates, fees and offers
Annual fee
$0
Rewards rate
1.50%
Bonus offer
Earn a $200 statement credit after you spend $2,000 or more in purchases with your new Card within the first 6 months of Card Membership. Terms Apply.
Intro APR
0% intro APR on Purchases for 15 months
Ongoing APR
APR: 18.99%-29.99% Variable APR
Cash Advance APR: 29.99%, Variable
Penalty APR: 29.99%, Variable
Foreign transaction fee
2.7% of each transaction after conversion to US dollars.
More details from American Express
More details from American Express
- Earn a $200 statement credit after you spend $2,000 or more in purchases with your new Card within the first 6 months of Card Membership.
- Unlimited 1.5% Cash Back on your purchases.
- 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.
Pros and Cons
Pros
No annual fee
Bonus offer for new cardholders
Intro APR period on Purchases
Cons
American Express isn't accepted at as many merchants as Visa or Mastercard
Detailed Review
» Editor's note
The American Express Cash Magnet® Card is no longer available to new cardholders, so this page may be out of date.
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The American Express Cash Magnet® Card is a relative newcomer to the issuer's family of cash-back products. But unlike its siblings, it's a simple, flat-rate card: You get 1.5% back on all eligible purchases.
On the upside, that guarantees you'll earn solid, uncomplicated rewards on everything you buy. On the downside, you can find plenty of cards — even within the AmEx family — that earn higher rates.
The American Express Cash Magnet® Card does offer a welcome bonus, among other benefits, and it's a good option for someone seeking simplicity in a rewards credit card. Plus, its annual fee is $0.
American Express Cash Magnet® Card: Basics
All information about the American Express Cash Magnet® Card has been collected independently by NerdWallet. The American Express Cash Magnet® Card is no longer available through NerdWallet.
Card type: Cash back.
Annual fee: $0.
Welcome bonus: Earn a $200 statement credit after you spend $2,000 or more in purchases with your new Card within the first 6 months of Card Membership. Terms Apply.
Rewards: 1.5% cash back on purchases.
Interest rate: 0% intro APR on Purchases for 15 months, and then the ongoing APR of 18.99%-29.99% Variable APR (as of June 2023).
Foreign transaction fee: 2.7%.
Travel perks: Car rental loss and damage insurance and global assist hotline.
Compare to Other Cards
Benefits and Perks
Straightforward rewards
1.5% back on all purchases is a standard rate for cash-back credit cards, and it's the same rate as that offered by popular cards like the Capital One Quicksilver Cash Rewards Credit Card. As with those cards, the American Express Cash Magnet® Card will also cost you nothing to carry each year, assuming you don't rack up interest charges.
Welcome offer
The card's bonus offer for new cardholders is on par with what you'll find with many other cash-back credit cards, although it does come with a higher-than-typical spending threshold. The offer: Earn a $200 statement credit after you spend $2,000 or more in purchases with your new Card within the first 6 months of Card Membership. Terms Apply.
Good 0% intro APR period
The card offers 0% intro APR on Purchases for 15 months, and then the ongoing APR of 18.99%-29.99% Variable APR. That's a decent window of time to finance a big-ticket purchase without interest charges.
Drawbacks and Considerations
Limited earning potential
While a 1.5% flat rate is a decent return on purchases, a card with elevated rewards on specific spending categories might be better. For example, if you're a foodie, the Capital One Savor Cash Rewards Credit Card gives you 3% cash back on dining, entertainment, grocery stores and streaming services. You can also find cash-back cards that offer 5% bonus rewards on categories that change quarterly.
Other flat-rate cards are more rewarding
If you don't want to put in the effort to track spending categories, 1.5% cash back is a perfectly respectable rewards rate. But you can still do better with a different flat-rate credit card. The Wells Fargo Active Cash® Card, for example, earns 2% cash back on every purchase. It comes with a solid introductory offer, too: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
Limited redemption options
Reward Dollars can’t be redeemed as cash back to your bank account. They can be redeemed only for statement credit, gift cards or merchandise.
Potentially limited acceptance internationally
American Express is not as widely accepted outside the United States as Visa or Mastercard. Even if your American Express Cash Magnet® Card is accepted at your international destination, you'll be charged a 2.7% foreign transaction fee for each purchase — and that could add up over the course of an overseas vacation. It's difficult, although not impossible, to find a cash-back card that charges no foreign transaction fees. If you're looking for a credit card to use internationally, better options exist.
How To Decide If It's Right For You
If you're not interested in keeping track of rewards tiers or bonus categories and just want an uncomplicated cash-back system, the American Express Cash Magnet® Card fits the bill. Just keep in mind that there's no shortage of cards on the market offering at least 1.5% back on all purchases — so evaluate your options to find the one that works best for you.
And if you think a little extra work is worth it in exchange for supercharging your cash-back earnings, you'll likely be better off with a different card.
All information about the American Express Cash Magnet® Card has been collected independently by NerdWallet. The American Express Cash Magnet® Card is no longer available through NerdWallet.
This card pays 5% cash back in quarterly categories that you activate (on up to $1,500 in spending per quarter) and 1% on everything else. Categories in recent years have included such things as restaurants, gas stations and digital wallets. The annual fee is $0.
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Methodology
NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.
About the author
Chanelle Bessette
Lead Writer & Content Strategist
