Apple Credit Card Review: Has Apple Reinvented Credit Cards?
Unless you’ve lived in a jungle for the past 30 years, you’ll have heard of the tech giant Apple. The company is better known for its spectacular products and simple design. However, as the company grew, the tech leader started moving towards the financial sector.
For one, in 2014, Apple Pay was released. This is the official mobile payment and digital wallet service of the company. Now, the app is one of the most popular payment methods in the world. As such, it was only a matter of time for them to move towards providing credit cards.
Thanks to the collaboration with Goldman Sachs, the Apple Card was released in 2019. Just like with all Apple products, it received lots of hype and enthusiasm from the user base. But does it stand up to its reputation?
In this Apple Card review, we’ll be looking to answer the following questions:
- What is the Apple card?
- What rewards does the Apple Card offer?
- What are the financial considerations of the Apple Card?
- Does the Apple Card have other benefits?
- Is the Apple Card right for you?
This should give you all the information that you need to see if the Apple Card is the right fit for you. If you choose to go for the Apple Card, you should know how to make the most of it. Let’s get started!
What Is the Apple Card?
The Apple Card is the first foray of the tech giant into the credit card market. Launched in 2019, it is the card for those of us who are already invested in the Apple ecosystem. Let’s be honest; Apple makes great products, and the same does apply to this card.
If you already use Apple Pay for a multitude of your digital spending, the Apple Card will fit right in. It is the first credit card designed specifically for the iPhone. With the Apple Card, the company claims to have ‘reinvented the Credit Card’… And we agree, this card has innovated in several ways.
The Apple Card lives on your Wallet app, and signing up for it takes as little as a minute. This integration makes your financial information easy to check and oversee. Your transactions and payments are all in the same place for you to track.
You can check your transactions by merchant or category. This makes it really easy to manage your finances as you can see what you’ve been spending your money on. On top of that, you can make summaries of your weeks or months’ spending.
Even if you want to check your spending habits on another platform, exporting your transactions is easy. This way, you can track your budget on a more dedicated spreadsheet should you need it.
This integration with the Wallet app makes making payments simple as well. You can make them right in the application. You just select the amount, tap a button, and you’re good to go.
If you’re worried about the card being accepted in the places you mostly use, you can rest assured it will be. The card is technically a MasterCard issued by Goldman Sachs, and this entails that it can be used anywhere that Mastercard is accepted. As such, you should have no issues being able to use it as Mastercard is accepted virtually everywhere.
The Apple credit card ranked highest in the Midsize Credit Card segment in the J.D. Power 2021 U.S. Credit Card Satisfaction Study. Apple Card and Goldman Sachs also ranked highest in the Midsize Credit Card segment across all of the surveyed categories.
This includes categories like interaction, credit card terms, communication, benefits and services, rewards, and key moments.
This rating shows that the partnership was a total success. The team at Apple Pay achieved its goal of providing a simple and transparent product that customers love.
What Rewards Does the Apple Card Offer?
So now that we know that the Apple Card is a great product let’s take a look at its rewards. This is probably the most exciting aspect of any credit card, and the Apple Card is no exception.
Unlimited Daily Cash
Daily Cash is the Apple Card’s cash back reward program. The Apple Card rewards you with a percentage of what you buy on every purchase. Given that it’s real money, it doesn’t lose any value or expire. This money is added directly to your Wallet app every day… unlike with other credit cards that require you to claim the reward and wait a certain number of days!
How much you earn depends on how you pay for it and what you buy. You can get a 1-3% rebate on your purchases. While this is not convenient if you are a fan of financial planning, the rewards are competitive enough to warrant it.
3% Cash Back
There are two ways to earn 3% cash back when using the Apple Credit Card. The first way is by making any purchase directly from Apple. This also includes all Apple services such as the App Store and Apple Music.
The other way to earn 3% is by making purchases from select retailers using Apple Pey. These retailers include Nike, Walgreens, Panera Bread, T-Mobile, and Exxon Mobil stations.
2% Cash Back
If you’re making Apple Pay purchases away from those mentioned above, you’ll be seeing a 2% Daily Cash reward. This applies to everywhere that accepts Apple Pay, in every category.
1% Cash Back
If you choose not to use Apple Pay services, you’ll be seeing a 1% Daily Cash as that percentage is given on all other purchases.
Regardless if you’re using Apple subscription services or just filling your car’s tank, you’ll be getting a lot of returns.
Apple Cash Account
Now, if you want to make use of your Daily Cash, you’ll have to set up an Apple Cash account. Your Daily Cash is then set up directly in the Wallet app.
With Apple Cash, you’re not at all limited in what you can spend it on. This means you can spend it on purchases made with Apple Pay, send it to another person who has Apple Cash, or you can even have it go towards paying for the Apple Card.
If you don’t have Apple Cash, the rewards won’t go to waste either. In this case, the Daily Cash rewards will accumulate and can be applied to your Apple Card balance.
Now this Daily Cash is a really good reward system and is a definite benefit to the Apple Card. Having unlimited rewards for items that you may be buying already is quite attractive. But we know this may not be enough to convince you… As such, let’s continue to the next section of our Apple Card review.
Does the Apple Card Have Other Benefits?
Now a 3% back system may not be enough of a carrot for many people. After all, while it is a competitive cash-back system, other credit cards do have better ones. So what else does the Apple Card bring to the table?
Apply in Minutes
Applying for the Apple Card is as simple as using Apple products. You can find the option directly in your Wallet app. It’s as simple as completing three steps:
- Filling the application.
- Agreeing to the terms of service.
- Once your application is approved, you have 30 days to accept the offered credit limit and APR.
With those three steps done, you can request your Apple Card. It’s as simple as that.
Applying for the card doesn’t impact your credit score so there’s not a lot to lose. Only if your application is approved and the Apple Card offer is accepted will a hard inquiry be made.
Now, we know that Apple prides itself on keeping users’ data private, and the Apple Card is no different in this regard. Whenever you make a purchase, the card needs your device number and authorization through your phone’s security features.
A second unique feature of the Apple Card is that it has no numbers on its titanium card face. This means that someone can’t take a picture of it and start making unauthorized purchases.
That doesn’t mean that your card doesn’t have a card number to use in online services. You can simply access this number via your Wallet app. The Card information section of your Apple Card will provide all the needed details.
The Wallet app will also give you access to other standard security measures. If you’ve misplaced your card, you can just freeze it until you find it again. Should you believe it’s been lost forever, you can ask for a replacement in the same place.
In the age of user data being bought and sold, it’s natural to have concerns over what data can be seen by Apple. You can rest assured that the tech giant does not access this information. Goldman Sachs will, however, need to access some of it for fraud detection purposes. This is still only visible to Goldman Sachs as they won’t share that information with third parties.
Apple Card Family
Apple makes it easy for you to share your credit card with your trusted family members. For one, you can co-own your Apple Card with your partner or another family member for that part. This co-ownership lets you build credit together and share your credit line.
Now, a co-owner has the same responsibilities as the cardholder. This added responsibility, however, means that a co-owner must be over 18 to be eligible.
You can also add family members to your card as a participant. A participant won’t hold the responsibilities of a co-owner and is designed for the little ones of the family. This gives family members over the age of 13 access to an Apple Card with spending limits designated by you, the owner.
This is an excellent feature because it allows you to teach your kids how to budget and spend responsibly. After all, we have talked in the past about why it is important to teach your kids financial responsibility!
Up to six people can be on a shared Apple Card account. This means that there is space for you, your partner, and four children… or any other variety of family structure you may have.
Apple Card Monthly Installments
The Apple Card helps you stay in the Apple ecosystem. This lets you make payments for your Apple products in installments with no interest on them. The process is as simple as checking out with ‘Apple Card Monthly Installments’ selected.
On top of that, you’ll get the 3% Daily Cashback. This merges the technology side of Apple with the financial section. This credit card seems to be a win-win all around!
What Are The Financial Considerations Of The Apple Card?
Now that we’ve touched upon the benefits let’s take a look at the fees and interest rates that the Apple Card provides.
In terms of fees, that’s an easy answer. There are none. This includes:
- No annual fees
- No over-the-limit fees
- No foreign transaction fees
- No late fees.
It’s as simple as that. There is a caveat though, to the last one. Late or missed payments will result in additional interest accumulating toward your balance, but that’s it.
And if you are worried about missing payments, the Apple Card makes that easy too. I’m sure you’re also annoyed by those due dates that always change, and you’re never sure when it’s due. With this card, you’re frequently reminded of how much you need to pay, and the due dates are always at the end of the month.
Even if you can’t pay the full balance, there are the interest calculator and smart payments features. These let you make an informed decision on how much you are going to pay before you have to—all without pulling out a spreadsheet.
That being said, your unpaid balance will still accrue interest at the standard rate. How much exactly is that? Your APR depends on your creditworthiness and can vary between 10.99 to 21.99%. The APR is very competitive as some cards go as high as 29%! This makes the Apple credit card’s APR an excellent offer.
Is the Apple Card Right For You?
Now we move to the crux of this Apple Card review. Is it the right one for you? If you are an iOS user and want to find a card that works seamlessly with Apple Pay… the answer is a resounding yes! In fact, no matter if you already have another credit card.
With the 0% interest on purchases of Apple products, you are rewarded for staying in the Apple ecosystem. On top of that, the main pulling force is the unlimited Daily Cash for things that you would be purchasing anyway. If you don’t use Apple Pay frequently, you may be thinking of using a different cashback service that can provide more than the 1% for other purchases.
That being said, the no-fee structure makes getting into the card easy. It’s clear that it targets the existing Apple fans looking to earn rewards for their Apple products. If you are an Apple user and have access to Apple Pay where you live, it’s worth considering. It’s simple to use, and you can share your card with your family. The sleek titanium card is nothing to scoff at either.
If you are still not convinced, you can check some of our other credit card reviews so you can compare the Apple Card with different options. In any case, we hope this Apple Card review has given you an insight into the tech giant’s card and how you can best use it in your daily life.
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