Approximate annual rewards value: $276
First-year bonus cash back value: $150
First-year rewards value: $426
American Express Cash Magnet Card offers 1.5% cash back on every purchase, making it an excellent choice for people who don’t spend a lot in any one area of their budget or who don’t want to spend more time than necessary maximizing their rewards. With no annual fee, the card doesn’t force you to do any math to make sure you’re getting enough value to hold onto it, although that’s assuming you don’t carry a balance after the introductory 0% APR promotional period ends.
Based on average spending data from the U.S. Bureau of Labor Statistics, American Express Cash Magnet Card holders can earn an estimated $276 each year.
|Expenditure||Annual cost||Cash back earning rate||Annual cash back earned|
|Apparel and services||$1,800||1.5%||$27|
|Flights and hotels||$1,000||1.5%||$15|
|Personal care products and services||$800||1.5%||$12|
|All other expenditures||$2,000||1.5%||$30|
|Total annual cash back||$276|
|Bonus cash back||$150|
|Total first-year value||$426|
Values for each spending category are based on average data from the 2017 U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey. Each category is rounded to the nearest $100.
When you first get the card, you’ll have the chance to earn a $150 bonus in the form of a statement credit. To qualify, you’ll need to spend at least $1,000 or more in purchases with your new Card within the first 3 months. Be sure to have a plan to use your card enough during that time to earn the bonus.
You can redeem your cash back in one of three ways: a statement credit, gift cards or merchandise. Before you can redeem, though, you’ll need to have at least $25 in rewards dollars in your account. Some other cash back credit cards allow you to get cash in the form of direct deposit or a paper check, giving you more flexibility. Also, keep in mind that you can’t use cash back rewards with this card to make your minimum payment.
The American Express Cash Magnet Card offers a handful of benefits that add value to its rewards program and APR promotion. If you’re traveling, for instance, you’ll be covered with rental car insurance. Shopping benefits include purchase protection.
The card offers an introductory 0% APR on purchases, after which the APR jumps to 13.99% – 23.99% Variable, based on your creditworthiness. The promotional period can give you plenty of time to finance a large purchase. After it’s over, though, the card’s APR is slightly higher than average, according to U.S. News research.
The card also comes with a feature called Pay It Plan It, which allows you to pay for certain large purchases over time with a fixed monthly fee rather than interest.
American Express Cash Magnet Card doesn’t charge an annual fee, making it easier for cardholders to know exactly how much value they’re getting out of the card. The card also charges a 2.7% foreign transaction fee on purchases made abroad.
Should You Get the American Express Cash Magnet Card
- Want a simple cash back rewards program
- Need to finance a large purchase
- Prioritize having no annual fee
- Aren’t concerned with the card’s limited cash back redemption options
For rates and fees of the American Express Cash Magnet Card, please click here