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American Express Cash Magnet vs Upgrade Cash Rewards 2024

investor.com

Written by investor.com

December 18, 2023

In head-to-head competition, which of these rewards credit cards wins out? Here’s what each has to offer and how they fare when put to the ultimate test — the cash back you’ll earn for using them.

American Express Cash Magnet
The American Express Cash Magnet card offers unlimited 1.5% cash back on purchases. Welcome offer: 0% intro APR on purchases for 15 months from the date of account opening. Earn $200 back after you spend $2,000 or more on purchases within the first six months of card membership.

Upgrade Cash Rewards
Use the Upgrade Card at retail locations and online and earn unlimited 1.5% cash back on all purchases when you pay them back. Funds from your line of credit are also available to be sent to your bank account. Welcome offer: Get a $200 bonus when you also open a Rewards Checking account and make three qualifying debit card transactions within 60 days.

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dining Dining
theater_comedy Entertainment
local_gas_station Gas
shopping_cart Groceries
monetization_on Other
local_pharmacy Pharmacy
card_travel Travel
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storefront Costco
construction Home Improvement
shopping_bag Online Shopping
smart_display Streaming
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Best for Low-Hassle Rewards

American Express Cash Magnet

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American Express Cash Magnet Logo
Cashback Per Year
$...
Annual Fee
$0
Welcome Bonus
$200

Upgrade Cash Rewards

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Upgrade Cash Rewards Logo
Cashback Per Year
$...
Annual Fee
$0
Welcome Bonus
$200
Apply Now

On Upgrade’s site
Rates & Fees

Want to compare more cards? Use our full calculator.

Which credit card earns more cash back overall?

Based on identical spending inputs, you’ll earn $180.00 cash back per year with American Express Cash Magnet and $180.00 with Upgrade Cash Rewards. For context, the average annual rewards payout from the cashback credit cards in the investor.com database is $181.73.

The annual rewards payout assumes you charge $1,000 each month spread across the following spending categories: Dining ($145), Entertainment ($134), Gas ($140), Groceries ($198), Travel ($128), Pharmacy ($15), and Other ($240). The dollar amounts for each category are based on consumer spending data collected by the U.S. Bureau of Labor Statistics (i.e., how much the average American spends proportionally across the major credit card rewards categories). But you can — and absolutely should! — customize the inputs based on your actual monthly spending habits, using our rewards calculator.

To ensure the most accurate results possible, the rewards calculations for American Express Cash Magnet and Upgrade Cash Rewards incorporate bonus rewards rates, spending caps, default rewards rates and annual fees, where applicable.

Is the American Express Cash Magnet good?

A flat, category-agnostic, unlimited 1.5% reward rate? Although less rewarding than other flat-rate cash-back cards, Amex Cash Magnet offers preapproval (handy if your credit score is on the fence) and installment payment plans for purchases you can't pay off in full right away.

thumb_up Likes

  • 1.5% unlimited cashback rate on purchases
  • $200 sign-up bonus
  • Preapproval with no impact to your credit
  • 0% intro APR on purchases/balance transfers for 15 months
  • Offers installment payment plans
  • Comes with Amex network perks

thumb_down Dislikes

  • Lower-than-average flat cash back rate
  • Flat 1.5% rewards rate less generous than other Amex cards
  • American Express not as widely accepted abroad as Visa and Mastercard
  • Le yuck 2.7% foreign transaction fee


Category Default Rate Bonus Rate Bonus Spend Cap Bonus Spend Period (Months)
Gas 1.50% - - -
Travel 1.50% - - -
Dining 1.50% - - -
Entertainment 1.50% - - -
Pharmacy 1.50% - - -
Groceries 1.50% - - -
Other Purchases 1.50% - - -

Is the Upgrade Cash Rewards good?

Calling this a “cash back credit card” is a loose interpretation of the genre. The Upgrade Cash Rewards card is basically a no-grace-period personal loan packaged in plastic, offering rewards that can only be used for one thing — paying down your balance.

thumb_up Likes

  • 1.5% rewards rate on purchases as they’re paid off
  • No security deposit required
  • Predictable monthly payments and fixed payoff date
  • Balances subject to fixed-rate APR
  • Offers prequalification
  • No late fees

thumb_down Dislikes

  • Rewards can only be applied as a statement credit
  • No grace period on purchases or transfers
  • Welcome bonus requires opening a checking account
  • Loans ineligible for cashback rewards
  • Charges 3% foreign transaction fee
  • No extra benefits
  • No authorized users allowed


Category Default Rate Bonus Rate Bonus Spend Cap Bonus Spend Period (Months)
Gas 1.50% - - -
Travel 1.50% - - -
Dining 1.50% - - -
Entertainment 1.50% - - -
Pharmacy 1.50% - - -
Groceries 1.50% - - -
Other Purchases 1.50% - - -

compare_arrows Compare cash back credit cards

Select and compare two credit cards head to head to see which offers the most bang for your buck.


Select Credit Cards

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  • check_box_outline_blankcheck_boxAlliant Cashback Visa Signature Credit Card
  • check_box_outline_blankcheck_boxAlly Everyday Cash Back Mastercard
  • check_box_outline_blankcheck_boxAlly Unlimited Cash Back Mastercard
  • check_box_outline_blankcheck_boxAmazon Prime Visa
  • check_box_outline_blankcheck_boxAmazon Visa
  • check_box_outline_blankcheck_boxAmerican Express Cash Magnet
  • check_box_outline_blankcheck_boxApple Card
  • check_box_outline_blankcheck_boxBank of America Customized Cash Rewards
  • check_box_outline_blankcheck_boxBank of America Unlimited Cash Rewards
  • check_box_outline_blankcheck_boxBlue Cash Everyday from American Express
  • check_box_outline_blankcheck_boxBlue Cash Preferred Card from American Express
  • check_box_outline_blankcheck_boxBMO Harris Bank Cash Back Mastercard
  • check_box_outline_blankcheck_boxBread Cashback American Express Card
  • check_box_outline_blankcheck_boxCapital One Quicksilver Rewards
  • check_box_outline_blankcheck_boxCapital One Quicksilver Rewards for Good Credit
  • check_box_outline_blankcheck_boxCapital One QuicksilverOne
  • check_box_outline_blankcheck_boxCapital One Savor Rewards
  • check_box_outline_blankcheck_boxCapital One SavorOne Rewards
  • check_box_outline_blankcheck_boxChase Freedom Flex
  • check_box_outline_blankcheck_boxChase Freedom Unlimited
  • check_box_outline_blankcheck_boxCiti Custom Cash Card
  • check_box_outline_blankcheck_boxCiti Double Cash Card
  • check_box_outline_blankcheck_boxCostco Anywhere Visa Card by Citi
  • check_box_outline_blankcheck_boxCredit One Bank American Express Card
  • check_box_outline_blankcheck_boxCredit One Platinum Rewards Visa (No Annual Fee)
  • check_box_outline_blankcheck_boxCredit One Platinum Visa
  • check_box_outline_blankcheck_boxCredit One Platinum X5 Visa
  • check_box_outline_blankcheck_boxDiscover it Cash Back
  • check_box_outline_blankcheck_boxDiscover it Chrome Gas & Restaurant
  • check_box_outline_blankcheck_boxFidelity Rewards Visa Signature Card
  • check_box_outline_blankcheck_boxNavy Federal cashRewards Credit Card
  • check_box_outline_blankcheck_boxPayPal Cashback Mastercard
  • check_box_outline_blankcheck_boxPenFed Power Cash Rewards
  • check_box_outline_blankcheck_boxPetal 2 Visa Card
  • check_box_outline_blankcheck_boxPNC Cash Rewards Visa Credit Card
  • check_box_outline_blankcheck_boxSam's Club Mastercard
  • check_box_outline_blankcheck_boxSoFi Unlimited 2% Credit Card
  • check_box_outline_blankcheck_boxTD Cash Credit Card
  • check_box_outline_blankcheck_boxTruist Enjoy Cash Credit Card
  • check_box_outline_blankcheck_boxU.S. Bank Cash+ Visa Signature Card
  • check_box_outline_blankcheck_boxU.S. Bank Shopper Cash Rewards Visa Signature Card
  • check_box_outline_blankcheck_boxUpgrade Cash Rewards
  • check_box_outline_blankcheck_boxUpgrade Triple Cash Rewards
  • check_box_outline_blankcheck_boxUSAA Cashback Rewards Plus American Express Card
  • check_box_outline_blankcheck_boxUSAA Preferred Cash Rewards Visa Signature Card
  • check_box_outline_blankcheck_boxVenmo Credit Card
  • check_box_outline_blankcheck_boxWells Fargo Active Cash Card

Compare

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Methodology

The results of the investor.com Credit Card Rewards Calculator are based on the monthly spending amounts you enter and the annual dollar value of the rewards each credit card program pays per $1 spent. Credit card companies often express this payout amount as a percentage (e.g., 1.5% of every dollar spent) or on a points basis (e.g. ,1.5 points for every dollar spent). We converted all of them to a dollar amount (“Cash Back Per Year”) to make comparing offers easier.

To calculate the amount of cash back you could earn per year, we factored in:

  • Spend category inputs: The default dollar values for each “Spend Category” in the Best Cashback Credit Cards tool — gas, groceries, travel, restaurant, entertainment, pharmacy, other — are based on average American spending data from the Consumer Expenditure Surveys from the U.S. Bureau of Labor Statistics. We also include additional spend categories (such as streaming services, online shopping, utilities, transit, Amazon and more) to help you see which rewards cards are most closely aligned with your actual spending patterns. We encourage you to customize the monthly spend inputs for the most accurate results.
  • Tiered rewards rates: If a rewards credit card pays higher cashback rates on certain spending categories (also called “Bonus Rewards”), that difference is reflected in the total “Cash Back Per Year” tally.
  • Rewards spending caps: Some cards impose category- or time-based limits (monthly, quarterly, annually) that affect the amount of rewards you can earn. For example, a card may pay 3% cash back on groceries on up to $1,000 of spending each quarter, then revert to the base/default rewards rate until the following quarter. We accounted for bonus spending caps and timeframe in the calculations.
  • Default rewards rates: Purchases that exceed a spending cap are usually subject to a lower default rewards rate (e.g., 1% or 1.5%). We mathed that out too.
  • Annual fees: If a rewards card charges an annual fee, we deducted that amount from the “Cash Back Per Year” total to provide a true accounting of a card’s annual rewards payout.

What’s not included in the “Cash Back Per Year” total is the cash value of any sign-up/introductory bonus. We highlight any Welcome Bonus separately. While sign-up bonuses can be the most lucrative part of getting a new cashback rewards credit card, not everyone will want or be able to do what it takes to earn the extra cash. (It usually requires spending a certain amount in a specified time period after the card is activated.)



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