Some fans may have thought that Apple’s 2019 announcement of the debut of a new Apple-branded credit card would revolutionize how we make purchases. However, the product’s attributes make it more like a Red Delicious than a credit card—widely available but not particularly flavorful.
Consumers might be able to make room in their digital wallets for another card that offers rewards, especially for pricey Apple purchases, despite the competitive market for cash-back cards.
The crucial query to ask is: Is this product right for you? this is true of all Apple product launches (and, frankly, all credit cards). Enjoy our Apple card review below!
For whom is this credit card ideal?
This is a good, inexpensive addition to your Apple Wallet because of the cheap cost, so that’s the only place you should keep it. You’re better off using one of the several no-annual-fee cards that give 1.5 percent or 2 percent cash back on all transactions and have a number of advantages when making purchases outside of Apple or without Apple Pay. For instance, this card does not have a promotional purchase APR, which is a feature that many other cash-back cards have.
However, you will have up to 24 months to pay off Apple products you bought directly from Apple interest-free with Apple Card Monthly Installments—while also continuing to earn 3% cash back. For instance, if you spent $1,000 on a MacBook Air, you would earn $30 in daily cash and have two years to pay it off interest-free.
The pros include outstanding rewards for purchases made through Apple and partner merchants; interest-free payment plans for Apple devices; excellent rewards rates on Apple Pay transactions; and financial management tools. The best APRs are at the low end of the range.
Cons: limited benefits; only useful for Apple users; poor rewards rate on non-Apple and non-Apple Pay transactions; only useful for Apple customers; limited availability connection with budgeting tools.
Advantages Explanation
Rewarding Apple and partner-merchant purchases: You’ll earn 3 percent Daily Cash at Uber, Uber Eats, Duane Reade, Exxon, Mobil, Panera Bread, Walgreens, Nike, and T-Mobile (in shops, app, and internet).
Interest-free Apple payments: Apple offers up to 24 months with no interest on card-charged Apple purchases. Installment purchases earn 3% cash back automatically added to your card’s minimum payment. Not all Apple products qualify, and installment terms vary.
Apple Pay transactions get rewards: Major businesses, websites, vending machines, and transit networks accept Apple Pay. The card’s Apple Pay rewards rate is on par with or better than the best flat-rate rewards cards.
Financial-management tools: Apple gives credit card statements their unique design. The interactive features show how your payment habits affect credit card interest. In-app texting simplifies customer service. Goldman Sachs gives non-cardholders options to improve their finances and get authorized. (Discussion follows.)
APRs are low: If you qualify, the Apple Card APR is lower than the typical cash-back credit card rate. Even though the high end is modest, you don’t want to pay it.
Even if you get the Apple Card’s finest terms, pay your bill in full. Never carry a balance on a card with a double-digit APR, no matter how low.
Disadvantages Explanation
Only Apple users will find it useful: The value of the card is derived from Apple Pay, which requires an Apple smartphone to use.
Poor rewards rates for purchases made with non-Apple and non-Apple Pay: If you’re okay with carrying more than one credit card, there’s no need to carry around the physical Apple Card, even though it could look interesting. A better rewards rate is available on all purchases with cards like the Capital One Quicksilver or the Chase Freedom Unlimited.
A few advantages Apart from the rewards on Apple purchases and Apple Pay, this card doesn’t offer much as a financial tool. This isn’t the card for you if you’re hoping for a welcome bonus or benefits like a free credit score or rental car insurance.
Limited compatibility with apps for budgeting: It won’t be able to automatically assimilate your Apple Card spending if you use third-party software to manage your finances. The seamless connection that many credit cards offer is not available when you export your transactions and upload that file to your money management software. 2. To track your card usage, Apple Card offers a number of proprietary functions. Read more about some Apple card fees below.
Earning Reward Details
Every time a cardholder spends, they receive Daily Cash benefits. Rewards are available in three tiers:
- Daily Cash is available on purchases made at Apple Stores, Apple.com, the App Store, and iTunes.Members get an extra 3% Daily Cash when they use Apple Pay with their cards at Walgreens, Panera Bread, Exxon Mobile, Nike, and T-Mobile stores.
- This offer is valid on all Apple Pay transactions across all spending categories and is worth 2% per day.
- Daily Cash of 1% is applied to all non-Apple Pay purchases.
Your Apple Cash Card in the Wallet app receives credit for any daily cash you earn. There are no restrictions on where you can earn cash rewards or on how much daily cash you can earn. However, as you can see, when you shop at Apple or pay with Apple Pay, your incentives will be worth the most.
The Benefits of the Apple Credit Card
- A deadline reminder
- Real-time fraud defense
- Chat support for customer service
- Use maps to keep track of where your money goes and get weekly and monthly summaries of it.
- Simple category or merchant filters for purchases.
- To help determine monthly payments, use the interest calculator and smart payments tools.
How to Increase Your Benefits
Spending wisely is the key to earning the most rewards with the Apple Card. First, you should use the card to pay for any upcoming Apple purchases, such as recurring subscription services. You will receive the sweet 3 percent Daily Cash rewards rate by doing this.
Next, use your card at the few businesses on the list above to keep getting 3 percent Daily Cash.For instance, if you spend $20 per day on gas from Exxon Mobile or purchases from Walgreens, you may save $219 annually.
The final way to maximize earnings is to use your card with Apple Pay elsewhere, which will earn you the 2% cash back.
However, you might wish to avoid using this card at stores or websites that do not allow Apple Pay. For instance, you could be better off with a card that offers 2% or 3% cash back at supermarkets if you frequently shop at a gourmet store in your neighborhood that doesn’t accept mobile payments.
Are You a Good Fit for an Apple Card?
This card could be a useful addition to your wallet if you use an iPhone and other Apple devices and currently pay for many of your purchases with Apple Pay. Think carefully before applying if you don’t frequently make purchases at stores that accept Apple Pay at the register because you’ll need to use the mobile payment option to maximize the benefits of this card.
Without a qualifying iPhone or iPad, you can use the card, but you won’t be able to accomplish anything. You will only be able to use your line of credit to make eligible purchases at Apple if your Apple Card isn’t added to your eligible device. The features that make this card worthwhile, such as collecting rewards, managing your account and payments through the Wallet app, paying for Apple products interest-free using monthly installment plans, and more, are unlocked by adding the card to your iPhone or iPad.
Since you’ll earn the highest rewards rates on Apple purchases and anything else you make using Apple Pay, the Apple Card is perfect for consumers who already regularly use an iPhone or other Apple device and want to spend more money with Apple in the future. Anyone else should likely think about using a different cash-back credit card. Apply now for the Apple card below.
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