Is the Apple Card Right For You?
Apple’s Latest Innovation? Not a Phone. Not a Laptop.
Welcome, Apple Card.
Apple once again has managed to capture the curiosity of its faithful followers and non believers with its announcement of its high anticipated Apple credit card.
Y2K Credit Solutions provides you a comprehensive breakdown and inside look into this years newest addition to the financial world.
Is this the card for you?
The Apple card is a reasonable option for people looking for an everyday credit card with simple rewards.
On top of having no annual fee or foreign transaction fees, you get 2% cash back on any purchases made through Apple Pay and 1% for purchases through the titanium Apple card. This card allows two ways for the cash back to be applied to the credit card’s bill. You could make it a statement credit. In addition to this, Apple offers a pay down calculator so you can estimate what your balance will be and the interest if you carry a balance into the next month. Those pay down features are great for people who are proactive in paying their credit cards off. But I like that it allows you to think about the result if you decide not to pay it off every month. This card is a good choice for iPhone users who place a high priority on convenience and security.
For those who are entirely focused on maximizing rewards, there may be better options. t’s unclear what kind of credit scores you’ll need to qualify for the Apple Card, but assuming you are creditworthy, you might benefit from this card.
Why you might pass on the Apple Card:
1. You’re an Android user
To use Apple Pay, you must have an iPhone model that can support it (typically iPhone 6 or later).
If you’re committed to a different mobile wallet, such as Samsung Pay or Google Pay, consider instead the Citi® Double Cash Card – 18 month BT offer. It pays 2% cash back on all purchases: 1% when you buy and 1% when you pay. The card’s annual fee is $0, and you can add it to the digital wallet of your choice.
2. You want travel rewards
Dreaming of a big sign-up bonus that can net you a free flight?
The Apple Card doesn’t offer that. A travel rewards card can, though. The $0-annual-fee Bank of America® Travel Rewards Visa® credit card, for example, earns 1.5 points per dollar on all purchases, not to mention a plum of a sign-up bonus: 25,000 online bonus points after you make at least $1,000 in purchases in the first 90 days of account opening – that can be a $250 statement credit toward travel purchases.
If you’re willing to pay the $95 annual fee, the Chase Sapphire Preferred® Card earns 2 points per dollar on travel and restaurant purchases and 1 point per dollar spent on all other spending, plus an even larger sign-up bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®. Plus, points are worth more when redeemed for travel through the Chase portal, and you can also transfer your points to multiple airline and hotel rewards programs.
3. You shop primarily at stores that don’t accept Apple Pay
Some major retailers, including Walmart, don’t accept Apple Pay. And while Costco does, you can only use Visa cards there; the Apple Card runs on the Mastercard payment network. This is to say nothing of the much smaller merchants where you may run into issues: Food trucks, mom and pop stores, bodegas and others simply may not be equipped to handle Apple.
4. You’d like to add an authorized user or finance a large purchase
For now, the Apple Card doesn’t allow you to include others on your credit card account. There’s also no introductory APR offer, and with APRs ranging from 12.99% to 23.99% as of August 2019, this is not an ideal card if you need to carry a balance. A card with a lengthy 0% intro APR offer would be a better option.
Do you have what it takes to qualify?
This card is subject to credit approval. Goldman Sachs requires a 750 credit score and 4 years of build credit history in order to qualify for this card.
Variable APR range from 12.74% to 23.74% bases on Credit Worthiness’s.
If you miss a payment, The bank will not charge you a late fee or apply a new high-interest penalty rate.
The tech giant created the card in partnership with Goldman Sachs and MasterCard. Goldman functions as the card issuing bank while Mastercard connects card users to any establishment that’s within its network.
It offers 3% cash back on purchases at Apple, 2% cash back on all purchases made on the card through Apple Pay, and 1% cash back on other purchases. The card charges no fees, offers daily cash back, and provides an app designed to help consumers understand the consequences of paying off a credit card over time
Innovative security features Debt and spending management tools
No fees Unique numberless titanium card
Promise of data privacy
Transactions linked to Apple Maps Late Penalty: $0, but additional interest will accrue
Synchronization of the card with phone features like Apple Pay and Apple Maps Touch ID and Face ID transaction approval
Provides additional ways to pay down balance
Low 1% cash back rate on purchases made outside of Apple or Apple Pay
Requires Apple hardware and Apple Pay
No welcome bonus
12.74% – 23.74% variable APR on purchases and balance transfers
“Additional interest” on late payments seems like penalty interest or a penalty fee
Have more questions?
Give us a call at (877) 552-1377 and ask for Andy! Visit us at Y2KCreditSolutions.com for more information on our full range of services.