The American express cash magnet credit card is a relatively new member of the Cashback Products family of American Express. But unlike its siblings, it is a simple, flat-rate card that offers you a Cashback Reward of 1.5% on all eligible purchases.
On the upside, you can earn Cashback Rewards that are solid and hassle-free on all eligible purchases.
On the flip side, you may find many cards, even within the AmEx family, that offer you higher Cashback Rewards if you are willing to keep an eye on tiered rewards or bonus categories.
The American express the cash magnet card offers you a welcome bonus, among other perks, and it’s an excellent option for you if you seek simplicity in the Cashback rewards provided.
Table of Contents
- Rates & Fees
- Additional Perks
- Potential Drawbacks of American express cash magnet card
- Potential Alternatives & Quick Comparison
- How to do a Balance Transfer with American Express?
- How to redeem Cashback Rewards?
- Bottom-line: Is American express cash magnet a good card-?
Rates & Fees of American express cash magnet credit card
|Balance Transfer Fees||Nil|
|Foreign Transaction Fees||2.7%|
|Introductory APR||0% APR is Applicable for 15 Months.|
|Regular APR||Variable APR- 13.99%-23.99%|
|Grace Period||25 Days|
|Cash Advance APR||25.24% Variable|
|Max Late Fees||$40|
Benefits of American express cash magnet credit card
The Top-Notch Customer Care Services
American Express Customer Care Service is the highest rated by J.D. Power among the top 11 credit card issuer companies. It offers 24/7 Customer Care Service.
Its services can be availed by online mode (Chatting) & offline mode (Customer Care Call Centers). Moreover, the American Express app is rated highly on Google Play-Store & Apple AppStore.
Straightforward Cashback Rewards
The American express cash magnet credit card offers you the ability to earn an unlimited cashback of 1.5% on all purchases. It does not have any bonus categories in purchases. So, there is no need to match spending to a category.
That means it gives you good leverage to spend on various types of purchases while earning equal cashback rewards.
Moreover, there is no cap on your spending, implying that your reward earning potential is not restricted.
Magnet Card is on par with many cards that offer a welcome bonus to its new cardholders worth $200 on purchases made up to $2,000 within the first 6 months of Account Opening.
Good 0% introductory APR Period
The American express cash magnet credit card offers you a good relief from interest rates due to the 0% APR on Purchases for the first 15 months. After that, it charges you the Regular APR, which is variable (ranging from 13.99%-23.99%).
This gives you a decent window of time to finance an expensive purchase.
Car Rental Loss and Damage Insurance
Receive up to $50,000 in coverage per rental agreement if your car sustains damage or theft or you are hooked for other covered charges.
Global Assist Hotline
You can call this hotline 24 hours a day to coordinate your travel plans.
If you qualify for $1,000 per incident (up to $50,000 annually) in purchase protection when an item you have purchased in the 3 months.
Zero Fraud Liability
In case of fraud, you are not hooked on fraudulent purchases made using your credit card.
Potential Drawbacks of American express cash magnet credit card
Limited Earning Potential
This card offers you a decent cashback reward of 1.5%. But there are a lot of cards that offer you a higher Cashback Reward.
These include Discover It (Cashback Rewards of 5% on purchases up to $1,500, then unlimited 1% Cashback), Citi Double (Cashback Rewards of 2% on all purchases), Blue Cash every day (Cashback Rewards of 3% on Supermarkets, Cashback Rewards of 2% on Gas Stations, & Department Stores).
Limited Acceptance Internationally
Limited Acceptance internationally is one of the major limitations of this card as it restricts this card’s cashback rewards to the U.S. only.
Other issuers like Mastercard, Visa cards have a broader international acceptance.
Limited Redemption Options
Reward Dollars can not be redeemed as cash back into your account. They can only be redeemed in the form of credit statements, gift cards, or merchandise.
Moreover, cardholders have to earn at least $25 in Reward Dollars to be able to redeem. Other cards do not have any minimum redemption amount.
Potential Alternatives & Quick Comparison of American express cash magnet credit card.
Here are the Best Alternative of this credit card.
Citi Double: Citi Double vs. Cash Magnet by American Express
A flat-rate card offers you an unlimited cashback reward of 2% (1% when the purchase is made, 1% when the payment is made/completed) compared to 1.5% of the Cash Magnet Card.
Moreover, the 0% intro APR of Citi Double is 18 months compared to 15 months time period of Magnet Card.
However, Cash Magnet has the upper hand regarding the welcome bonus of $150 on purchases of $1,000 made within the first 3 months of account opening,
which Citi Double doesn’t offer. Another upper hand of Cash Magnet is the best-ranked customer service among credit card issuers in the U.S., according to J.D. Power.
Discover It: American Express Cash Magnet vs. Discover It:
It is a well-renowned 5% Cashback card that offers you a 5% cashback reward on purchases made worth $1,500 within the first 3 months of account opening.
It is well-renowned due to its excellent Customer Care Service Experience matched by none other than American Express.
While we compare the APR, both are equal as Cash Magnet offers you a 0% APR for 15 months compared to 14 months time period of Discover It. However, Discover It charges APR ranging from 11.99%-22.99% compared to the regular APR of Cash Magnet, ranging from 13.99%-23.99%.
American Express Everyday Card: American Express Everyday Card vs. American Express Cash Magnet Card
It offers you a higher cashback reward (a Cashback reward of 3% on purchases made in Supermarket come with a cap of $6,000 per year, along with a Cashback reward on purchases made in Gas Stations & Department), as compared to 1.5% Cashback Reward of Cash Magnet Card.
Though it offers a better Cashback reward rate, these rates are applicable on a spending cap of $6,000, then 1% Cashback rate is applicable. Cash Magnet Card, on the other hand, does not have a spending cap.
Moreover, its cashback rates are decent and consistent across all categories.
|Fees & Rates||American express cash magnet credit card||American Express Everyday Card||Discover it Cash back Credit Card||Citi Double Cash Card|
|Welcome Bonus/Sign-up Bonus||$150 on purchases of $1,000 within the first 3 months of Account Opening||$200 on purchases of $1,000 within the first 3 months of Account Opening.||None||None|
|Cashback Rewards||1.5% unlimited, with no spending cap||3% Cashback Rewards on purchases at U.S. Supermarkets, 2% Cashback Reward at U.S. Gas Stations & Departmental Stores, 1% Cashback on rest of the purchases.||5% Cashback on purchases up to $1,500 made within the first 3 months of Account Opening, then 1% unlimited Cashback is Applicable.||2% total Cashback (1% as you buy and 1% as you pay)|
|Intro APR||0% APR for 15 Months||0% APR for 15 Months||0% APR for 14 Months||0% for 18 Months|
|Regular APR||Variable APR- 13.99%-23.99%||Variable 12.99%-23.99%||Variable 11.99%-22.99%||Variable 13.99-23.99%|
|Foreign Transaction Fees||2.7%||2.7%||0%||3%|
How to do a Balance Transfer with American express cash magnet credit card?
You can transfer the balance with an Amex Credit Online and on your Account Management Page.
First, you have to log in to your account, then click on ‘Account Services,’ and then choose the option that says ‘Payment & Credit Options,’ from there, you have to click on the button that says ‘balance Transfer’ and the process will begin if you are eligible.
How to redeem Cashback Rewards?
The first notable detail about this card is that it does not earn you points in the Membership Rewards Program. Instead, you make a flexible form of Cashback that can be redeemed as a gift card, merchandise, or statement credit.
Your Cashback never expires as long as your account is open. Redemption options begin once you accrue at least $25 in cash.
Frequently Asked Questions
Here are some of the Frequently Asked Questions American express cash magnet credit card
What Credit Score is required for American express cash magnet credit card?
A person good to excellent Credit Score of 670 & above to is good enough to get approved for the acquisition of the American Express Cash Magnet Credit Card.
What is the Credit Limit of American express cash magnet credit card?
The Credit limit is not pre-approved, your credit limit will depend on Annual Income, Credit Score and Credit creditworthiness. When you apply American Express cash magnet credit card, then you can know limit within 30 seconds.
What is the grace period for American Express cash magnet card?
American Express cash magnet credit card have 25 days grace period.
Bottom-line: Is American express cash magnet a good card ?
American express cash magnet credit card review
If you are not interested in keeping track of rewards tiers or bonus categories and just want an uncomplicated cashback system, the American express cash magnet credit card fits the bill.
Just keep in mind that there are plenty of cards on the market offering a minimum Cashback of 1.5% on all purchases — so evaluate your options find out the one that is best suited for your needs.
And if you think a little extra work is worth it in exchange for supercharging your cashback earnings, you’ll likely be better off with a different card.
And in case if you can do some extra work to avail of Cashback rewards, then you might go for a different card like American Express Blue Cash every day and Discover It. Both of them offer you good cashback rewards while maintaining the top order of Customer Care Service.
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