AMEX Cash Magnet Card Review and Benefits

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Cash Magnet Features

  • 1.5% Cash Back (unlimited)
  • New cardholder sign up bonus
  • 0% introductory APR rate for 15 months
  • Variable APR 15.24% to 26.24%
  • No Annual Fee

American Express offers many premium credit cards.  The American Cash Magnet Card offers a slightly different approach.  This card does not have an annual fee which is normally associated with other premium AMEX Cards.  Instead, the Cash Magnet Card offers a simple rewards structure with no fees.  All purchases are eligible for 1.5% cash back with no limit to the amount which can be earned.

AMEX Cash Magnet
AMEX Cash Magnet – A Bold Blue Design Featuring The Iconic AMEX Centurion

American Express Cash Magnet Review

Overall, this is going to be a strong option for many consumers.  There are several factors that set this card apart from other zero annual fee cards.  First, this card has a very competitive rewards program.  The baseline reward rate for a reward card is generally set at 1%.  Many cards offer 1% back for all purchase and then use additional categories to earn more (such as 3% for gas).  The Cash Magnet Card makes things simple by offering a flat 1.5% back on all purchases.

Another great thing about this card is that it comes with a new card holder sign up bonus.  We will discuss this further below but consumers interested in a new credit card should always look for the best sign up bonus.  Many cards do not provide sign up bonuses so this puts the AMEX Magnet Card in a category above these competitors.  Furthermore, the intro 0% APR will be a big draw for consumers who may carry a balance.  With this said, we would recommend making sure your balance is entirely paid off by the end of the intro rate to avoid costly interest.

The Magnet Card is going to be a great option for consumers who are looking for a simple rewards card.  Added with the fact that there is no annual fee will make this a very popular for many credit card users.

Magnet Card Sign Up Bonus

One of the best features about the AMEX Magnet Card is the new customer sign up bonus.  Currently, new customers are eligible to receive $150 when they spend $1,000 on their card in the first three months of opening their new account.  The spending can be made for any type of purchase and customers will still earn the standard 1.5% back in addition to the sign up bonus.

Once customers complete the sign up bonus their $150 will be applied to their card as statement credit.  This will go towards your existing card balance.  The required spending for this card is relatively low.  There are some competing cards like the Chase Freedom Unlimited Card that have even lower spending requirements ($500).  However, $1,000 is a very achievable spending requirement for most consumers in a three month period.  These two cards both offer 1.5% cash back so the primary deciding factor will be which company you want to do business with – AMEX or Chase.  Ultimately, neither is a bad choice and some consumers will take advantage of both card sign up bonuses.

Cash Magnet Card – Redeeming Your Rewards

When you earn cash back with the AMEX Magnet Card it will be credit to your rewards balance as “Reward Dollars”.  This adds a nice level of flexibility for using your rewards.  The simplest way to redeem your rewards is to simply apply it as statement credit.  This means your balance will be reduced by whatever amount you apply to your account.

Reward Dollars can also be used for additional award options.  Customers can also choose from gift cards and select merchandise through their rewards account.  You can easily review what type of reward will best suit your needs by reviewing all of the options available to you.

Payment Flexibility and “Plan It”

Some credit cards, especially American Express cards, do not allow customers to carry a balance.  These are more accurately termed charge cards.  Users of these types of cards must pay off their balance in full each month.  The AMEX Cash Magnet Card allows cardholders to carry a balance when necessary.  Interest rates will apply but this adds an extra level of flexibility to managing your finances with this card.

The American Express Plan It features allows further flexibility for payment options.  For select purchases, customers can set up a payment plan.  These purchases will not be charged interest but will requirement fixed monthly payments be made.  Failure to pay your adjusted balance will subject the balance to interest so this feature should be used accordingly.

AMEX Magnet RSVP – Responding To A Mail Offer

American Express provides pre-qualifying offers for select consumers. If you have received a mail offer to apply for the Cash Magnet Card you can access your application online.  Customers will need to visit the mail offer website and complete the short form to apply online.

AMEX Magnet RSVP
AMEX Magnet RSVP – Responding To A Mail Offer

In order to respond to an offer you will need to provide the 14 character RSVP code you received.  You will also need to provide your zip code.  Once you enter this information you will be transferred to your application page.  After filling out the entire application you can submit for a credit review.  Credit decisions are typically provided immediately in as little as 30 seconds.

Final Thoughts

If you are looking for a simple cash back credit card the Cash Magnet is a great option.  This card is not going to have some of the features of Premium AMEX Cards but offers many of the protections customers expect from American Express.  American Express is widely accepted so there will be very little stopping your from earning 1.5% back on every purchase you make with your AMEX Magnet Card.

Helpful Links:

amex.us/magnetrsvp

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