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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"
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Freedom unlimited for every day purchases.
Solid choice. I’m using SPG right now, but that will switch to Freedom Unlimited on 8/1/18.
https://www.dansdeals.com/points-travel/milespoints/2-months-starwood-amex-devalued-racking-starpoints/
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….
Chase Ink Cash can earn 10% back on Amazon, 10% back on telecom, 10% back on office supplies/gift cards, and 4% back on gas and dining if you value Ultimate Rewards points at 2 cents each.
See more:
https://www.dansdeals.com/credit-cards/businesscreditcards/highest-public-offer-ever-earn-50000-point-signup-bonus-awesome-no-annual-fee-chase-ink-cash-card/
https://www.dansdeals.com/credit-cards/businesscreditcards/get-chase-ink-preferred-ink-cash-card-heres-comparison-chart-differences/
https://www.dansdeals.com/more/all-about/amazon-subscribe-save-watch-skip-button-pesach-psa-filler-items-tips/
But those are all business cards. What about for a personal card? Is amazon credit card not a good option?
Business cards are better than consumer cards. If you have any side business you can apply to get a credit card for it by applying as a sole proprietor.
Otherwise, yes. It’s a decent option.
Are there any issues in regards to filing taxes or with the IRS
No.
Thanks Dan for all your posts! Plan to apply for the AMX Blue Business card to get the 10k (or 20k?) bonus plus 2X earning, have 4 Amx credit cards (blue, Hilton, SPG, SPG business) and AMX platinum business (charge card?), is it better to cancel the personal blue card first, then apply for the blue business card? Had the personal blue card for several years already. Thanks!
Dan, Care to explain how does the chase cash ink earns 10% on amazon and telcom? I thought its 5% x 1.5 for CSR
thanks.
5×1.5 is the minimum value.
When I use airline miles I often get a value of 2, 3, 4, or even 5 cents per miles. That’s dependent on how you use the miles, but it’s not hard to get a value of 2 cents each.
Ok guess ill have to do a little research on that. thank you for pointing it out.
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.
Chase is really dominating the credit card market right now. Why besides for them?
Are you looking for miles or cash?
I prefer points.
Have quite a few with them already. I applied last month for the ink cash and got approved, last week i applied for 4 at a time 2 for each company after all Huca’s they didn’t budge since i have a lot of credit with them alrwady even tough not rhis products i applied for and they just opened me a new card and now i asked for 4 at a time, they want to see how that goes first. The 4 at a time was a big turn on for them as well even though i gave good explanation why i applied for each of them.
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?
Sure:
https://www.dansdeals.com/credit-cards/earn-50k-points-50-bonus-points-everywhere-brand-new-no-annual-fee-chase-ink-business-unlimited-card/
But I already have the Freedom Unlimited, so I don’t have a need for Business Unlimited.
AMEX purchase protection might be a selling point.
There are very few purchases that I make where I need purchase protection. But yes, in those limited circumstances that is a consideration. But that doesn’t affect everyday purchases.
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.
Agreed, if it’s something that might need AMEX protection then I’d still put that on a card like SPG. But I don’t think everyday spending will make sense going forward.
Doesn’t sapphire reserve come with basically the same purchase protection as SPG? Is it simply that Amex is easier to deal with from a customer service perspective?
Isn’t there an AMEX business card that gives 2 MR points per dollar spent?
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
I’m not seeing any signup bonus on that card. No idea where you see 50K.
Dan
You are right as allways
but I had a targeted promotion for that in the mail
For 50K? Sweet!
there’s a public offer for $300 statement credit. $150 after $1000 spend and another $150 after another $6500 in 12 months (yes, i also had to read it twice). I got turned down for the signup bonus by the infamous new popup.
I value 1.5 Chase points more than 2 AMEX points these days.
Also it’s capped at 50K spending.
And that card doesn’t have return protection, etc. And there’s no option to cash out.
But it’s not a bad option. Certainly better than cash magnet!
“Cash magnet” because it holds on to your cash. Also good for decorating the fridge with.
LOL
There’s also the Capital One Quicksilver card with 1.5% cashback and no annual fee nor foreign transaction fee.
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
Paypal MasterCard offers 2% cashback on all purchases
I’d take Citi over Paypal personally.
Any specific reason?
Better protections and Paypal is not as reputable as Citi.
Thanks. Definitely will consider your advice and look into the Citi card.
Why do you recommend the Freedom over Citi double cash 2% cash back and 24 months additional warranty?
Did you read the post?
@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
But that requires having a Schwab account and paying $550 in annual fees.
60,000 points sign up + GE +UBER+Airline credit – kept it after 1st year too – $200 Airline Credit +$200 UBER + Any AMEX Offers
Do you use the full airline and Uber credit?
The problem is that they’re both quite restrictive.
AMEX Offers would also exist if you had a free AMEX with free AU cards.
I’m not saying it doesn’t make sense, but you can’t just call that 2.5% back without factoring in the $550/year vs a Citi Double Cash at 2% or Freedom Unlimited, etc.
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.
Ouch.
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
I think the SDFCU Premium Cash + is a better option.
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?
Yes.
https://www.dansdeals.com/credit-cards/chase-quadfecta-least-23-arent-rightbut/
Does the new cash magnet card offer primary rental coverage?