AMEX Launches New Card, But It Pales In Comparison To Chase And Citi Offerings

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AMEX today launched the Cash Magnet card.

Ostensibly the consumer card is designed to compete with the Chase Freedom Unlimited®® card, as both cards market that they earn 1.5% cash back everywhere.

However as savvy point junkies know, the Chase Freedom Unlimited card actually earns Ultimate Rewards points. Those can be used as cash back, or they can easily be worth 2 cents each or more as airline miles or hotel points, meaning you can effectively earn 3% back everywhere without point earning limitations. If you have a Sapphire Reserve® then you also have a redemption floor of at least 1.5 cents each, making spending on the card worth a minimum of 2.25% back. Click Here to get more details on this card and compare to other cards! 

The Chase Freedom card is an essential part of my Chase Quadfecta thanks to the versatility of the points that card offers and the strength of the Chase Ultimate Rewards program.

The Cash Magnet AMEX earns Rewards Dollars that can’t be transferred into airline miles, so you won’t earn more than 1.5% back.

If you’re just looking for cash back, you may as well use a Citi Double Cash card, which earns 2% cash back everywhere with no annual fee:

 

What card do you use for everyday purchases in non-bonus categories?

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51 Comments On "AMEX Launches New Card, But It Pales In Comparison To Chase And Citi Offerings"

All opinions expressed below are user generated and the opinions aren’t provided, reviewed or endorsed by any advertiser or DansDeals.

Moshe

Freedom unlimited for every day purchases.

shoshana

Dan,
I am looking into the Amazon Prime Credit Card for when the SPG card looses its splendor in August. Honestly, most my purchases are on Amazon and would get 5% cash back and 2% back on gas and restaurant…..
I’m wondering why you never talk about or support that card….

Abe

I’m looking for a business cc that won’t show on my credit report, with 0 Apr for the beginning. What would be my best option besides Chase? High sign up bonus is a plus as well.

david

The new chase Business Unlimited card, earns 1.5 everywhere and it’s a business card. best choice after the SPG even better than the freedom since it’s a business card. no?

Achshell

AMEX purchase protection might be a selling point.

exShoYoGuy

SPG was always my card, you say to switch to Chase freedom unlimited but I always have much easier time when dealing with issues with Amex over Chase. Even with the loss I’ll probably be forced to still use SPG if there is a chance I may have an issue. Anything else can be Chase unlimited.

Sam

Isn’t there an AMEX business card that gives 2 MR points per dollar spent?

Zee

Yes there is
Amex Blue Business Plus earns 2x MR Points for the first 50K spent on the card

Plus u get 50K MR Points for Sign/Up Bonus
https://www.americanexpress.com/us/credit-cards/business/business-credit-cards/american-express-blue-business-plus-credit-card-amex

rebyid

“Cash magnet” because it holds on to your cash. Also good for decorating the fridge with.

Jack out of the box

There’s also the Capital One Quicksilver card with 1.5% cashback and no annual fee nor foreign transaction fee.

mh

Amex Blue Business Plus = 2% MR Points and have Schwab AMEX Platinum (got bonus on this and regular platinum)
Schwab is 1.25 cash into account. effectively if I am more interested in cash which I am now – I get 2.5% cash for each transaction now

Leah

Paypal MasterCard offers 2% cashback on all purchases

Sweatshirt

Why do you recommend the Freedom over Citi double cash 2% cash back and 24 months additional warranty?

mh

@Zee @ Dan This is the typical spend $5,000 get 20,000 MR Points.

The Blue card and the Schwab opens you up to 2.5% cash back for all MR points even those not earned on the Schwab Platinum

card player

I applies for both myself and my wife and we both got the message that we were not eligible for the bonus due to our history of closing cards. It seems they are being very strict. I would guess most commentators will get the same so save your breath unless your a newbie.

Avraham

I hardly ever travel so for me Cashback is the way to go. I have an AMEX preferred card that gets 6% back at grocery stores (once I hit the $6000 grocery limit I have the Amex blue cash that gets only 3% Cashback at grocery stores) and 3% back at gas stations. I have a Citi double Cashback card for just about everything else with 2% Cashback and a chase freedom card and a discover card for the 5% Cashback categories throughout the year. Dan, is there anything that I am missing or is there anything else I should get that would provide more Cashback?

Thanks

Jeremy

I think the SDFCU Premium Cash + is a better option.

Azar

Hey Dan, thanks as always for the info! Question – I downgraded my sapphire to the freedom unlimited and still have lots of UR points. But I don’t seem to now have the option to transfer them to miles, only gift cards for stores. Any ideas? Did I lose that value when I downgraded?

Nate

Does the new cash magnet card offer primary rental coverage?

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