Apple is known for its user-friendly products and the new Apple credit card is no different. It integrates with your iPhone and the Wallet app so you can make purchases using Apple Pay without having to use a plastic card. There’s no need to wait on cash-back rewards, either, because they’re applied to your account daily. The Apple card is also cheap to use, with no fees of any kind.
Meanwhile, the Wallet app provides weekly and monthly spending summaries to help you track expenses. Several payment options are available, and the app even calculates interest costs for different payment amounts. In a company press release, Jennifer Bailey, Apple’s vice president of Apple Pay, said customers “have told us they love Apple Card’s simplicity and how it gives them a better view of their spending.”
Not all customers are happy with the Apple Card, however. Bloomberg reported on Nov. 9 that there’s a probe into Goldman Sachs, the financial institution behind the card, after tech entrepreneur David Heinemeier Hansson alleged via Twitter that the Apple Card’s algorithms produced gender bias against his wife (Jamie Heinemeier Hansson) and gave her a lower credit limit even though her credit score was higher than his own.
- Apple Card Review
- Apple Card Advantages and Disadvantages
- How the Apple Card Compares With Other Credit Cards
- Who Should Consider the Apple Card?
- Who Should Pass on the Apple Card?
- How To Apply for the Apple Card
- Apple Card Review: Is the Card Worth Having?
The no-fee Apple Card earns 3% cash back on purchases at Apple and other select merchants and 2% back on everything else — but only if you use your iPhone and Apple Pay to make the purchases. No more reaching for your card in the wallet. Instead, you “swipe” your iPhone to make a payment. You can request a physical companion credit card to use at retailers that don’t accept Apple Pay, but you’ll only earn a 1% cash reward on those purchases. Here’s a look at the card details.
Annual Fee: No annual fee
Rewards: These rewards are available when you pay with your iPhone using Apple Pay:
- Get 3% cash back on Apple Pay purchases at Apple, Uber, Uber Eats, Walgreens, Duane Reade and in-store T-Mobile purchases.
- Get 2% back on all other Apple Pay purchases.
- Get 1% back on purchases made with the physical card.
Sign-Up Bonus: None, although you can apply for an Apple Card through the iPhone Wallet app and receive a decision in minutes to start using it right away
APR: Variable rate of 12.49% to 23.49% APR
Late Fees/Penalties: None, although interest will be charged on late payments
Foreign Transaction Fee: None
Retail Protections: None, aside from real-time fraud protection
Travel Protections: None
Credit Score Needed: Not disclosed
Other Benefits: Through the Daily Cash Program your cash rewards are sent to Apple Cash every day so you can send friends money or apply your cash towards Apple purchases. If you don’t have an Apple Cash account, you can request that your rewards go toward statement credits.
Read More: How Much Is Apple Worth?
Apple cardholders will be rewarded with 3% cash back on Apple retail and Apple Store purchases. Other purchases can earn 2% in cash-back rewards. To get the higher rewards rate, you must have an iPhone and use Apple Pay — paying with the physical card will earn you only 1% cash back. Take a closer look at the card’s advantages and disadvantages.
Apple and Goldman Sachs have put together a unique credit card product with many advantages.
There are absolutely no fees attached to the Apple Card — no late fee, no returned payment fee, no annual fee, no over-the-limit fee and no foreign transaction fee. Should you miss your payment due date, your card balance will accrue interest at regular interest rates. This forgiving card is a good fit for people who forget to make an occasional payment, though you should still make your payments on time or it could affect your credit score.
It’s All About Your iPhone
Everything you need is on your iPhone, making a real wallet nearly a thing of the past:
- Store your card in your phone’s Apple Pay app.
- Use your phone to make payments in stores that accept Apple Pay.
- Manage your spending and bills via the Wallet app.
- Reach Apple support via text message.
Rewards Can Be Used Instantly
Daily Cash automatically accrues on your Apple Cash card every day, enabling you to send some or all of the funds to friends and family or apply the balance toward Apple Pay purchases. Users without an active Apple Cash account can redeem Daily Cash rewards as a statement credit.
The Apple Card’s no-fee structure and cardless-purchase features are certainly huge pluses, but there are also drawbacks. Unless you’re an Apple user, this might not be the best store credit card for you. Here’s why.
You’ll Need a Newer iPhone To Earn Rewards
You’ll need Apple Pay to earn 2%-3% cash back, and to use Apple Pay you must have an iPhone 6 or later. If you’re an Android user or have an older iPhone model, you’ll miss out on the higher cash-back rewards.
Rewards for Everyday Spending Not the Best
Investing in Apple: How To Buy Apple Stock
Wondering how the Apple Card measures up to other store credit cards? Perhaps the most distinctive feature of the new Apple Card is no fees — even on late payments. Here’s a comparison of how the Apple Card measures up to other popular retail credit cards.
Apple Card Review and Comparison
|Card||Perks||APR||Fees and Penalties|
||Variable APRs range of 12.49% – 23.49%||
|Amazon Prime Rewards Visa Signature Card||
||Ranges from 15.74% to 23.74%, based on credit||
|Capital One Walmart Rewards Card||
||Variable rate of 17.99%, 23.24% or 26.99% APR based on credit||
|Costco Anywhere Visa Card by Citi||
||Variable 16.74% APR||
|Macy’s American Express||
||Variable 26.74% APR||
|Victoria’s Secret Credit Card||
||Variable 26. 49% APR||
About Investing: 10 Stocks That Could Be the Next Apple or Amazon
Consumers who regularly buy Apple electronics, apps, music and other products would benefit most from the Apple Card because of the 3% cash-back reward. Rewards are credited daily to your Apple Cash account. You can use your account balance to pay for Apple Pay purchases or send money to others, or you can apply your cash rewards to your statement balance.
Investing Tips: Are Apple, Facebook and Other Tech Stocks Now a Bargain?
Android users should pass because they don’t have access to Apple Pay and won’t get the full benefits of the card. If you regularly shop at small retailers, you should also probably skip the Apple Card. Apple claims that 74 of the top 100 retailers accept Apple Pay. But smaller retailers might not be set up for Apple Pay, which means you’ll only be able to earn 1% cash back on purchases using the physical card.
You can apply for the Apple Card in minutes. Here’s what you need to do:
- Open the Wallet app on your iPhone and tap the + button.
- Select the Apple Card.
- Fill in your name, date of birth, email address and phone number.
- Wait a few seconds for approval and accept the card’s terms.
- Add the card to the Wallet app and it’s ready to go.
The Apple Card is worth having if you’re a loyal user of the tech giant since it’s integrated with your iPhone. The card is user-friendly, easy to sign up for and can be used and managed entirely from your iPhone. One potential downside, as mentioned earlier, is the investigation to see if the Apple Card’s approval algorithm discriminates against women when determining the credit limit.
More From GoBankingRates
- What Is a Roth 401(k)? See If This Plan Is Right for You
- Marcus by Goldman Sachs Review: Savings Options With Competitive Rates
- Best Savings Accounts of 2020
- Retirees Confess What They Wish They’d Done With Their Money
Rates are subject to change. All other information on accounts is accurate as of Dec. 6, 2019.
This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Marriott International or Chase Bank.
Editorial Note: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.