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American Express Cash Magnet Card Review: Is It the Right Choice for You?
What Is the American Express Cash Magnet Card?
The American Express Cash Magnet Card is a straightforward cash back credit card that offers a flat rate of 1.5% cash back on all purchases. With no annual fee and a simple rewards structure, this card is designed for those who prefer uncomplicated earning and redeeming of cash back rewards.
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American Express Cash Magnet Card Pros & Cons
Pros:
- Flat 1.5% cash back on all purchases
- No annual fee
- Welcome bonus for new cardholders
- 0% intro APR on purchases for 15 months (then a variable APR applies)
- American Express benefits like purchase protection and car rental loss and damage insurance
Cons:
- No bonus categories for increased cash back
- Foreign transaction fees apply
- Not as widely accepted as Visa or Mastercard
- Potentially higher APR compared to some competitors
Who Is the American Express Cash Magnet Card For?
The American Express Cash Magnet Card is ideal for:
- Simplicity seekers: Those who prefer a straightforward rewards structure without tracking bonus categories.
- Moderate spenders: Individuals who make regular purchases but may not spend enough in specific categories to benefit from cards with tiered rewards.
- New credit card users: The card's simplicity makes it a good option for those new to credit card rewards.
- People who value Amex benefits: Cardholders who appreciate American Express's customer service and additional perks.
Comparing the American Express Cash Magnet Card With Other Credit Cards
When considering the American Express Cash Magnet Card, it's helpful to compare it with other popular options in the cashback credit card category:
- Annual fee: $0
- Sign-up bonus: Cash bonus after meeting spending requirements
- Key rewards: 5% on travel purchased through Chase Travel℠, 3% on dining and drugstores, 1.5% on all other purchases
- Standout feature: Flexible redemption options including cash back, travel, and gift cards
Capital One Savor Cash Rewards Credit Card (rates & fees):
- Annual fee: $0
- Sign-up bonus: Cash bonus after meeting spending requirements
- Key rewards: 3% on dining, entertainment, popular streaming services, and grocery stores
- Standout feature: No foreign transaction fees
Blue Cash Everyday® Card from American Express (rates & fees):
- Annual fee: $0
- Welcome offer: Cash bonus after meeting spending requirements
- Key rewards: 3% at U.S. supermarkets (up to $6,000 per year, then 1%), 2% at U.S. gas stations and select U.S. department stores. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout
- Standout feature: This card offers a generous intro of APR on purchases and balance transfers
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.
Each card offers unique benefits tailored to different spending habits and preferences. Consider your personal financial goals when choosing the best card for you.
Key Takeaways:
- American Express Cash Magnet Card excels in offering uncomplicated earning and redeeming of cash back rewards
- Chase Freedom Unlimited® offers diverse category bonuses
- Capital One Savor Cash Rewards Credit Card rewards dining and entertainment spending
- Blue Cash Everyday® provides strong rewards on everyday purchases
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Consider Using Kudos to Maximize Your Rewards
While the American Express Cash Magnet Card offers a solid 1.5% cash back on all purchases, savvy shoppers can potentially earn even more by using Kudos, a free AI-powered browser extension. Kudos helps you maximize your credit card rewards by:
- Suggesting the best card to use for each purchase
- Offering up to 5X rewards during "Flash Boost" events
- Working with over 15,000 online stores
- Providing personalized credit card recommendations based on your spending habits
By using Kudos alongside your American Express Cash Magnet Card, you can ensure you're always getting the most value from your purchases and potentially earning more than the standard 1.5% cash back.
Our Expert Takeaway
The American Express Cash Magnet Card is a solid choice for those seeking a no-frills cash back credit card with no annual fee. Its 1.5% flat rate on all purchases makes it easy to earn rewards without the need to track rotating categories or spending limits. The card's simplicity, coupled with Amex's renowned customer service and additional benefits, makes it an attractive option for many consumers.
However, for those willing to put in a bit more effort, there may be more rewarding options available. Cards with higher flat rates or those with bonus categories could potentially offer greater returns, especially for big spenders or those with specific spending patterns.
To truly maximize your rewards, consider pairing the American Express Cash Magnet Card with Kudos. This free AI-powered tool can help you make the most of your credit cards, ensuring you're always using the best card for each purchase and potentially multiplying your rewards.
If you're looking to get more out of your credit cards, Kudos is the best free shopping app to use when you shop online. And, they're currently offering $20 back after your first eligible purchase — just sign-up for free with code "GET20" and make a purchase at a Boost merchant.
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American Express Cash Magnet Card FAQ
How do I redeem my cash back rewards?
Cash back is earned as Reward Dollars, which can be redeemed for statement credits, gift cards, or merchandise through the American Express Rewards program.
Is there a welcome bonus for new cardholders?
Yes, new cardholders can earn a welcome bonus, typically in the form of statement credit after meeting a minimum spending requirement within the first few months of card membership.
Does the card have an annual fee?
No, the American Express Cash Magnet Card does not have an annual fee.
What is the APR for this card?
The card offers a 0% intro APR on purchases for the first 15 months. After that, a variable APR applies based on your creditworthiness and the prime rate.
Are there any foreign transaction fees?
Yes, the card charges a 2.7% foreign transaction fee on purchases made outside the United States.
What additional benefits does the card offer?
The card includes benefits such as purchase protection, extended warranty, car rental loss and damage insurance, and access to the Global Assist Hotline.
Can I add authorized users to my account?
Yes, you can add authorized users to your American Express Cash Magnet Card account. They will receive their own card linked to your account.
Supercharge Your Credit Cards
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
