An Apple Credit Card Review: Is It a Good Deal?.
Apple has created a credit card For people who mostly think of Apple as a computer (or phone) company, this might come as a surprise. However, Apple is not so much a tech company as it is a brand that offers a specific perspective on how things should look, feel and work. So basically, Apple’s credit card isn’t such a weird thing. Apple thinks they’ve reinvented the traditional credit card, but how beneficial is that in real life?
We’ve taken a close look at what Apple’s credit card has to offer on paper and have looked at sites like Reddit and social media to get a feel for the day-to-day challenges people face when using this Titanium card.
So if you’re tempted to try Apple’s new (card) item, read this first to make sure you know what’s in store for you.
Apple Credit Card: What’s the Deal?
Why would someone want an Apple credit card instead of a traditional card from a well-known banking institution? Apple Credit Card offers several core values, which can be summarized as follows:
- Fully integrated and dependent on the iPhone
- Apple Pay integration
- Clear and intuitive dashboard for payments and interest.
- Very favorable interest rates (if you can get them)
- Cashback (with higher rates for Apple and partners)
- Interest-free terms for Apple devices
Also, the physical card itself is a typical Apple design. Minimalist and made from titanium, the card hardly ever wears out. However, in this article we are not interested in the physical map, but in the transaction as a whole. So let’s discuss these value propositions in more detail.
IPhone integration (for better or worse)
One of the completely unique aspects of Apple’s credit card is that it relies on the iPhone If you don’t have an iPhone, you won’t be able to get an Apple credit card
The card itself is actually just an extension of the digital wallet system that exists on your phone. It doesn’t have a credit card number on it and is practically blank. A physical card essentially gives you the option to pay if Apple Pay isn’t available. This means getting 1% cashback instead of 2%. Sure, the titanium card is great and cool, but that’s not the point.
The Interest Advantage on Apple Credit Card
Apple claims their card is different as it encourages you to pay less interest. It seems a little counterintuitive because the credit card companies make money from the interest you pay on the loan.
Apple has gone to great lengths to show you when and how to pay to avoid interest on the outstanding balance. You also pay only for the part of the balance that you decide not to pay. This is actually not all that different from how most credit cards work. If you borrow money from a credit card for a short period and return it within a certain period of time, you will not be charged interest.
The main difference here is that Apple displays numbers that help minimize interest payments, rather than hide them from view.
Apple credit card differs not only in the transparency of interest calculation. Apple also offers some of the lowest interest rates on the market for a cash back credit card
While your potential interest rates are generally quite low, how close you get to the lowest possible interest rate will depend on your credit rating and the algorithm Apple uses to determine card limits and interest rates.
When it comes to cashback rewards, Apple has a rather unbalanced solution. If you buy Apple products or make purchases with Apple Pay from partners, the cashback will be significant. If you buy things outside of this affiliate network, there are cards that offer higher returns on average.
So whether an Apple credit card is profitable depends a lot on whether you are a frequent Apple customer, use Apple Pay regularly, or shop at retailers that are part of their partner network.
Apple Gadget feature
To be honest, one of the main reasons Apple probably invented their credit card is so they can sell more Apple stuff to people. Since you need to have an iPhone to get the card, only people who are already part of their ecosystem will be eligible for it.
Apple offers to sell you Apple products using their card at no interest. In other words, you get Apple Gadgets for cash, but on a payment plan. Not all products are eligible and the maximum redemption period varies, with 24 months being the longest possible.
The Goldman Sachs Connection
While the card boldly depicts the iconic Apple logo, you probably won’t be surprised to learn that Apple hasn’t become a fully independent financial institution. Their card is actually backed by Goldman Sachs.
While there is nothing wrong with this step in principle, anyone considering applying for a card should know who they are actually doing business with. There have been reports in the media about privacy concerns and potential problems of discrimination with algorithms in interest rate determination.
If you’re not happy with the way Goldman Sachs does business, you won’t be happy with an Apple credit card
For whom is an Apple credit card suitable?
Let’s solve the main problem first. If you’re not an iPhone user yet, or are not going to stick with the iPhone and the Apple ecosystem in the long run, the Apple card just isn’t worth it. Sure, it doesn’t have an annual fee, but the cheapest iPhone actually costs $ 400. So do what you want out of it.
Since you will need to get an iPhone first, which is not cheap, the reward does not justify it. If you are looking for a way to get Apple’s fix at the best price, the card will be much more attractive. Interest-free payment plans on Apple gadgets are a great deal. You also get another 3% cashback when you repay the loan to the device.
It’s the same with Apple Pay purchases. If you already use Apple Pay in your daily life, the card offers great benefits. If none of your regular retailers offer it, there is no reason to use an Apple card.
Another problem that can be a problem for many is the fact that Apple does not allow more than one person to use the card. So if you need a second card for a spouse or child, you’re out of luck if that person doesn’t buy their own iPhone and apply for their own Apple credit card
So, to summarize the answer to the question of whether an Apple credit card is beneficial or not, all you have to ask yourself is whether you love Apple, whether you have an iPhone or want one, and whether you have many options to use Apple Pay If you answered yes to these questions, then this is a great deal. If the answer is no, then it is better to move on to something else.