Who is the American Express Cash Magnet card for?
The American Express Cash Magnet card is ideal for consumers looking for a simple and straightforward rewards system with low introductory fees and a good signup bonus. With a flat 1.5% cash back on every purchase, this card is user friendly and easy to use. Cardholders do not need to keep track of specific categories for rewards, and there is no limit on the amount in rewards consumers can receive.
This card is a good entry-level card for people looking to keep one card for their wallet, as the American Express Cash Magnet card’s rewards are versatile. However, a good credit score is recommended to obtain this card. This makes the American Express Cash Magnet card good for cardholders transitioning from secured accounts to an unsecured account.
In addition, this card does come with foreign transaction fees, so frequent travelers should keep that into consideration when deciding to get this card. This card lacks a robust travel rewards program in comparison to other credit cards, and it is best used by people who don’t travel often.
The American Express Cash Magnet card offers a good incentive for people to try the card: after spending $1,000 in the first 3 months, cardholders receive $200 cash back (keep in mind that this is temporarily upgraded from their usual cash back offer of $150). In addition, this card also features a lengthy 15 month introductory period with 0% APR on purchases and balance transfers.
The American Express Cash Magnet card keeps it sweet and simple: 1.5% cash back on all purchases, regardless of category. This is beneficial to new credit card owners as they don’t have to keep track of various spending categories and their respective cash back rewards rate. In addition, there isn’t a cap on the amount that owners can earn through the rewards program of this card. As a result, owners can enjoy the rewards on this card without having to worry about reaching a ceiling. This feature is especially beneficial to heavy shoppers, since they can make expensive purchases and continue to get rewarded. In comparison, many other credit cards reduce the cash back percentage or create a limit to reduce the benefits that cardholders can enjoy.
The cash back program from the American Express Cash Magnet card works by rewarding card owners with Reward Dollars. Reward Dollars can be redeemed for gift cards, merchandise, and can be used to pay for a portion of the monthly statement. However, owners must have at least 25 reward dollars before they can redeem their points for statement credit.
Through the American Express Cash Magnet card, owners get access to the American Express entertainment portal for exclusive access to ticket presales. Entertainment venues range from Broadway to concerts to sporting events. So, for concertgoers and sports fans alike, this card offers a great chance to snag top seats for your favorite event.
This card is also ideal for consumers who shop a lot or make big purchases. In addition to unlimited 1.5% cash back on all purchases, cardholders also get free access to ShopRunner. Through ShopRunner, consumers have access to free two-day shipping from major boutiques such as Saks Fifth Avenue and Ann Taylor. And if you don’t love your order, ShopRunner also lets American Express customers return their order for free. Through this partnership, shoppers can buy from popular department stores in a fast and inexpensive manner.
Recently, American Express has also rolled out a feature called Pay It Plan It. By using American Express’ mobile app, cardholders can pay off purchases under $100 right away to reduce the interest they pay during their monthly statements. For purchases over $100, users can choose to split the payment into smaller statements and pay a monthly fee with no interest. This enables cardholders to slowly pay back large purchases for a smaller amount each month.
The American Express Cash Magnet card comes with many programs designed to protect consumers. When using the American Express Cash Magnet card to pay for a rental car, American Express extends an insurance policy to cover cardholders if their rental car is damaged or stolen.
Furthermore, cardholders also have access to the Global Assist Hotline, an American Express support feature that provides assistance to cardholders while they travel. For example, if someone loses their passport, needs a lawyer, or needs translation services, the Global Assist Hotline is there to protect cardholders.
This card also comes with Dispute Resolution, a feature intended to help customers dispute fraudulent charges on their credit card. With this feature, cardholders can shop with confidence, knowing that American Express will protect them.
To qualify for this card, card holders generally need to have a good credit score - the minimum recommended credit score is in the high 600s. So, if your credit score is not as high, it is important to work on rebuilding your credit before you can obtain the American Express Cash Magnet card. A good way to do so would be to use a secured credit card instead.
Another thing to be conscious about are the late fees and penalties that American Express imposes on its cardholders. For late fees, American Express charges up to $40. As such, it is important to try and pay all outstanding payments on time. After more than one late payment is made, a penalty variable APR of 29.24% is charged to your account. This APR lasts for 6 months after the late payment is made.
Since American Express looks at credit history to determine APR, your APR can range from 12.99% to 23.99%. Multiple late payments may result in a higher APR for extended periods of time.
In addition, since this card does come with a foreign transaction fee, it is detrimental to be using this while traveling frequently. Over time, these transaction fees will add up and ultimately hurt the cardholder. If you are a frequent traveler, it may be worth considering alternative credit cards intended for traveling.
The American Express Cash Magnet card is a simple but effective card for consumers who shop a lot and do not want to be overwhelmed with confusing rewards programs. This card entails a moderate signing bonus with plenty of protection features and benefits. Along with no annual fees, a lengthy introduction period with low APR, and an unlimited cash back feature, the American Express Cash Magnet card is a good card for consumers desiring simplicity. However, if your main goal is to earn good rewards on shopping, there are also many other cards that offer higher rewards rates than the American Express Cash Magnet card.