Posted by William Charles on June 14, 2018
Credit Cards

Published on June 14th, 2018 | by William Charles

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American Express Launches Cash Magnet Card – $300 Sign Up Bonus & 1.5% Everywhere

Bonus is now $250.

As previously rumored American Express has officially launched a new card called ‘Cash Magnet‘. Let’s take a look at the new card.

Card Overview

  • No annual fee
  • Card earns 1.5% cash back on all purchases
  • Sign up bonus of $300, broken down as follows:
    • Earn $150 back after you spend $1,000 or more in purchases with your new Card within the first 3 months of Card Membership.
    • Plus, earn an additional $150 back after you spend an additional $6,500 in purchases within your first 12 months.
  • 0% intro APR on purchases and balance transfers for first 15 months then a variable APR of 14.49% to 25.49% (3% or $5 balance transfer fee, whatever is more)

Our Verdict

This is a weird card from American Express, the 1.5% rate is supposed to compete with the Chase Freedom Unlimited but that card is significantly more useful due to the fact that it actually earns 1.5x Chase UR and those points can be transferred if you have a premium Chase card (Sapphire Preferred, Reserve, Ink Plus or Ink Preferred). There are a lot of other cards on the market offering 2%+ cash back so using this card long term doesn’t make sense. That being said the sign up bonus is good, so I suspect a lot of readers will sign up for the card/bonus just for that. I don’t see the bonus going any higher than this in the short to medium term, in fact I suspect it will probably go lower after the 7/18/18 end date (saw something similar with the Blue Business Plus card, although that has a better long term earning rate). In total you need to spend $7,500, you’d earn the $300 sign up bonus and $112.5 from the spend ($412.5 total). If you put the same $7,500 spend on a 2% card you’d only earn $150 so the bonus is significant in that respect. Personally I’d recommend signing up now if you value cash sign up bonuses, it might also be useful to have another no fee American Express card for holding long term for AmEx offers.

Keep in mind that you might get a pop up saying you’re not eligible for the sign u bonus now on American Express cards due to a vague new rule, although at least they are being up front about it. If you have any other questions, read this post first and if it’s still not answered ask below and I’ll do my best to answer.



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Well, hell! I was just excited about the Chase Amazon 2% deal through end of 2018. Thought I had a good daily driver and could get off the credit card signup bus until then.

The Wells Fargo Business Platinum has a better signup bonus and lower spend requirement than this. And being a biz card, it doesn’t report to the credit bureaus.

Wells Fargo Biz cards are pretty hard to get if you have a “business” correct?

guy bucktastik
guy bucktastik

I mean ya, you gotta fill out a form. The whole form, too.

I thought you need a checking account for a year before you could apply for that card

Not if you apply in-branch.

Does the four credit card limit for Amex count business and personal cards? Or just personal?

Both. Credit cards, not charge. Remember that.

boridi as Joe said. But keep in mind some/most people are able to now get 5 cards (maybe even 6).

I know applying and earning the bonus is option one for everyone, but I do wonder if this will be able to be converted to from any of the other cards they have. Probably just the Blue Cash, which is a better card to SD, and keep with a zero annual fee anyways. Still wondering!

Actually I just contact Amex and they told me that I can change my blue cash every day to this card (I only have BCE for five months)

You’re right. This new card doesn’t compete with Chase Freedom Unlimited, because the CFU’s 1.5% can become 2.25% through the redemption process. The new card’s true competitors are Capital One Quicksilver and NFCU cashRewards, both of which earn 1.5% with no possibility of improving upon that rate via the redemption process.

approved! good credit card with no annual fee. does the “cash back” report under MR points or how does it work? thhis is my first american express card.

also is there a hard or soft pull? im sure a lot of us are curious

First Amex card will be a HP on Experian. You most likely will not get pulled again in the future on your other Amex cards

You get “rewards dollars” and you can redeem for statement credit after you get to $50.

I thought it was $25 for Amex reward dollars. Did that change or am I recalling it wrong?

Maybe this card is different, but Blue Cash cards had cash redemptions of $25 increments, and changed to any amount over $25 last month.

Approved without any pop ups! I was really expecting the pop up.

Card looks pretty cool, IMO

If only it were made of a solid bar of metal.

One can only hope.

I’m guessing this is not a charge card.

I was approved with a soft pull since I was preapproved for this card. 740 Fico 8 score.

petitesybarite

i thought all cc applications were hard pulls, even if you’re pre-approved? do you already have another amex cc?

approved. I figure the additional $6500 comes to about 3.8% after 1.5% +$150.

Good way to convince yourself 🙂

Right, it is 3.8% at that threshold, which seems pretty mediocre relative to other signup bonuses for that much spend.

Given AMEX’s new mysterious bonus-denying rules I think I’d avoid signing up for another Amex unless it’s got an amazing bonus or is worth holding. This is neither.

100% agree. There has to be a reward for taking the risk. You’re basically going to be putting 6.5k spend hoping for 3.8% return, whereas if they don’t like your exact spend, then you end up getting merely 1.5%.

There are already cards that earn 3% on any spend, and even more cards that earn between 3% and 6% on category spend that’s pretty easy to MS — groceries, OSS — so, I’m definitely going to pass this one, even though I do like cash bonuses quite a bunch.

In addition, AmEx only allows 5 total cards on the account; so, this’ll be taking a spot that might as well better be kept open for something more interesting.

petitesybarite

which cards give you 3% cash back on discretionary spend? i only know of alliant, but it’s 3% CB the first year

discover miles ul in 1st yr

jennifer miller
jennifer miller

As far as I know, usaa limitless is highest at 2.5%. which one pays 3%?

petitesybarite
petitesybarite

alliant gives 3% back the 1st year, subsequent years 2.5% CB but it does have an annual fee from year 2 on ($59). which would make USAA limitless the highest for nondiscretionary spend since it doesn’t have an AF.

B of A has a total (or travel?) rewards that also gives 2.625% CB and no AF, but you need to have $100k parked at merrill edge.
https://www.bankofamerica.com/credit-cards/products/travel-rewards-credit-card/
https://www.doctorofcredit.com/bank-america-travel-rewards-card-review-2-6x-everywhere-relationship-no-annual-fee-no-foreign-transaction-fee/

i think there are some 3% amex but have a high AF. not positive though…

the card design looks refreshing but the perks are just meh.

I take it there’s a fee for balance transfers.

The RAT team really needs to crack down on CF Frost.

Yeah, CF Frost seem like the biggest churner ever.

Not sure why anyone would get this card as it is 7500 spend to get 300 dollars and Amex is cracking down on people opening and closing cards. Seems like are easily 10 Amex cards better than this one.

Decent card for a low spender like me that wants to take a break from new cards for a while.

Essentially 5.5% cashback for a year. Takes me a long time to spend $7500.

jennifer miller
jennifer miller

To be exact, it’s 4% not 5.5% ($7500×4%=$300)

Shaun is correct. You forgot to add the non-signup bonus earning of 1.5%

4% bonus + 1.5% regular earn = 5.5%

jennifer miller
jennifer miller

Ahhh, thank you, makes sense now.

What Shaun said, decent card for low spenders.

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