Summer 2019 Apple started accepting applications for its new credit card offer issued by Goldman Sachs. From Amazon to Uber, Many tech companies have credit cards. Is the new Apple Credit Card any good?
Should you get it? What does the launch mean for the credit card business overall?
Experts from the personal-finance website WalletHub have the answers, after performing a review of the Apple Card’s publicly available terms.
What You Should Know
Not a Good Financing Option: Apple previously said its goal is to provide interest rates that are among the lowest in the industry. But the card should be avoided by anyone who doesn’t pay their bill in full every month. It doesn’t offer 0% introductory rates and has a regular APR of 12.99% to 23.99%. This rate is unfavorable compared to the average APR 15.09% on a credit card.
Strong Apple Pay Rewards: The Apple Card is most rewarding when used through Apple Pay. Cardholders earn 3% back when buying Apple products using Apple Pay. Other Apple Pay purchases earn cardholders 2% back.
Average Physical-Card Rewards: Apple Card purchases made with the physical credit card, rather than via Apple Pay, earn just 1% back. The average cash rewards card gives 1.06% back on all purchases, according to WalletHub data. In contrast, the best rewards credit cards offer the equivalent of at least 2% back on all purchases.
No Fees: The Apple Card has no annual fee, no foreign transaction fee, and no late fee. The average credit card charges a $18.61 annual fee, a 1.49% foreign fee and a late fee of up to $32.94, according to WalletHub’s Credit Card Landscape Report.
Q&A with WalletHub CEO Odysseas Papadimitriou
Who should apply for the Apple Card?
“The only people who should consider applying for the Apple Card are those who pay their bills in full every month and spend a lot via Apple Pay,” said WalletHub CEO Odysseas Papadimitriou. “Everyone else is better off with one of the best rewards credit cards or one of the best 0% APR credit cards.”
Does the Apple Card improve privacy and security?
“Apple Pay is a more secure way to pay, but you can use any credit card with it. The seemingly unique aspect of the Apple Card is the access it gives users to virtual card numbers, but most credit card companies allow users to request virtual card numbers these days. So that alone isn’t a reason to get a specific card,” said WalletHub CEO Odysseas Papadimitriou. “Most importantly, at the end of the day, all credit cards give $0 fraud liability guarantees, so consumers are protected from having to pay for unauthorized charges no matter which card they use.”
