Wednesday, 13 November 2019

American Express Cash Magnet Card Review: What You Need to Know

American Express Cash Magnet Card Review: What You Need to Know
07 Nov
1:38

American Express is plunging further into the cashback rewards credit card segment with the American Express Cash Magnet® Card. This card provides stiff competition for three other popular cashback cards: the Blue Cash Everyday® Card from American Express, the Citi® Double Cash Card – 18 month BT offer and the Chase Freedom Unlimited®. All three offer cashback programs and don’t charge an annual fee. But what sets the new American Express Cash Magnet® Card apart from the pack? We’ll cover that and more in this review.

How the American Express Cash Magnet® Card stacks up

American Express Cash Magnet® Card

Blue Cash Everyday® Card from American Express

Citi® Double Cash Card – 18 month BT offer

Chase Freedom Unlimited®

Annual Fee

$0

$0

$0

$0

Regular Purchase APR

14.49%-25.49% Variable

14.49%-25.49% Variable

15.49% – 25.49% (Variable)

16.74 – 25.49% Variable

Rewards

Unlimited 1.5% Cash Back on your purchases

3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 2% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases.

Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.

1.5% cash back offer.

Welcome Offer / New Cardmember Offer

$150 back after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.

$150 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

No bonus

$150 Bonus after you spend $500 on purchases in your first 3 months from account opening. Earn unlimited 1.5% cash back on all purchases.

Foreign Transaction Fee

2.7% of each transaction after conversion to US dollars.

2.7% of each transaction after conversion to US dollars.

3%

3% of each transaction in U.S. dollars

What we like about the card

The Welcome Offer. Like many rewards cards on the market today, the American Express Cash Magnet® Card is looking to woo new cardmembers with a Welcome Offer — <span data-sheets-value="{"1":2,"2":"$150 back after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.<!–American Express Cash Magnet® Card–>"}” data-sheets-userformat=”{"2":513,"3":[null,0],"12":0}”>$150 back after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.

Simplicity. Earn a straightforward Unlimited 1.5% Cash Back on your purchases Unlike rotating category cards, you don’t have to worry about remembering points in different spending categories, nor do you have to sign up quarterly to get higher rewards.

Good intro offers. The American Express Cash Magnet® Card comes with an intro 0% on purchases for 15 months on purchases and an intro 0% on balance transfers for 15 months on balance transfers (after, <span data-sheets-value="{"1":2,"2":"14.49%-25.49% Variable<!–American Express Cash Magnet® Card–>"}” data-sheets-userformat=”{"2":513,"3":[null,0],"12":0}”>14.49%-25.49% Variable APR).

Flexible repayment. The card offers access to the Plan ItSM feature, which gives cardmembers flexibility by allowing you to create up to 10 payment plans for purchases costing $100 or more. You’ll have a fixed finance charge each month a plan is active.

Some travel perks. It comes with the familiar rewards and protections you expect from American Express, including auto rental insurance, Global Assist® Hotline, purchase protection and access to presale tickets to events like concerts and sporting events.

What could be better

You get your cash back as a statement credit. You can’t redeem it on things like airline tickets, hotel stays, gift cards and merchandise. You also can’t transfer it to airline or hotel loyalty programs. However, the card may occasionally offer other ways to redeem reward dollars, like gift cards or merchandise.  Note: cash back cannot be used to pay your minimum due.

You can do better than 1.5% cashback these days. If you’re looking for a higher cashback rate, check out the Citi® Double Cash Card – 18 month BT offer as an alternative, where you <span data-sheets-value="{"1":2,"2":"Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.<!–Citi® Double Cash Card – 18 month BT offer–>"}” data-sheets-userformat=”{"2":8403841,"3":[null,0],"10":2,"11":0,"12":0,"14":[null,2,0],"15":"Calibri, sans-serif","16":11,"26":400}”>Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.

Not the best for travel. If you travel regularly, this card doesn’t offer things like trip delay/interruption or baggage insurance like other travel credit cards. And you’ll pay a foreign transaction fee of 2.7% of each transaction after conversion to US dollars..

Check out our roundup of the best travel rewards cards.

Alternatives to the American Express Cash Magnet® Card:

Blue Cash Everyday® Card from American Express

Blue Cash Everyday® Card from American Express

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on American Express’s secure website

Terms Apply | Rates & Fees

Blue Cash Everyday® Card from American Express

Regular Purchase APR
14.49%-25.49% Variable
Intro Purchase APR
0% for 15 months
Annual fee
$0
Rewards Rate
3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 2% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases.
Blue Cash Everyday® Card from American Express: If you’re looking for a flat-rate cashback card for supermarket spending, this is a hard one to beat. It also carries a $0 annual fee and a welcome offer that lets you $150 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

Citi® Double Cash Card – 18 month BT offer

Citi® Double Cash Card – 18 month BT offer

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The information related to Citi® Double Cash Card – 18 month BT offer has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Terms Apply.

Citi® Double Cash Card – 18 month BT offer

Regular Purchase APR
15.49% – 25.49% (Variable)
Annual fee
$0
Rewards Rate
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.
Credit required

good-credit

Excellent, Good

Citi® Double Cash Card – 18 month BT offer: The card doesn’t offer a sign-up bonus, but you have the potential to earn a higher cashback rate. It offers the same cashback rewards simplicity as the American Express Cash Magnet® Card, but at a better rate. Cash back can be redeemed for statement credits or credited to either your linked Citi savings or checking account, or to a checking account from which you have paid a card bill at least two times, among other options.

Chase Freedom Unlimited®

Chase Freedom Unlimited®

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The information related to Chase Freedom Unlimited® has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Terms Apply.

Chase Freedom Unlimited®

Regular Purchase APR
16.74 – 25.49% Variable
Intro Purchase APR
0% Intro APR for 15 months
Annual fee
$0
Rewards Rate
1.5% cash back offer.
Credit required

good-credit

Excellent/Good

Chase Freedom Unlimited®: This card looks similar to the American Express Cash Magnet® Card. If you use the Chase Freedom Unlimited® in combination with your existing Chase Sapphire Preferred® Card or Chase Sapphire Reserve® card, there are opportunities to earn even more cash back. You can do this by combining the cash back on the Chase Freedom Unlimited® with points earned on the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®. You can then use those points in the Chase Ultimate Rewards® portal, where you can get 25% to 50% more value when you redeem them for airfare, hotels, car rentals and cruises. You can also transfer those points to four hotel or nine airline partners.

The information related to the Chase Sapphire Preferred® Card and Chase Sapphire Reserve® has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Our final take

For those who are loyal to American Express-branded cards, the new American Express Cash Magnet® Card could be a good proposition. It offers simple cashback rewards with a $0 annual fee. It has a limited time welcome offer that can put extra rewards in your pocket if you spend the amount required to get it.

The American Express Cash Magnet® Card comes with some travel and protection perks that aren’t offered by other credit cards in the no-annual-fee, cashback rewards category. And getting flexibility in how you make payments on the card is something not offered by competitors.

So if you want a simple cashback rewards card with decent perks, this is a good option. But if you spend more on things like travel and dining, and you don’t need the payment flexibility option, there are more robust card offerings out there.

Source: https://www.magnifymoney.com/blog/credit-cards-2/american-express-cash-magnet-card-review/

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