The Apple Card to Have Lower Interest Rates?
On March 25, Apple Announced their new Apple Card credit card. “Apple Card is designed to help customers lead a healthier financial life, which starts with a better understanding of their spending so they can make smarter choices with their money,” said Jennifer Bailey, Apple’s vice president of Apple Pay.
Among other things the following features were mentioned in the presentation: no fees, lower interest rates, and better rewards program. So, what is the real state of affairs? As the card’s key terms and conditions are already posted on the network, let’s take a look.
Apple Card’s Terms and Conditions
- Intro APR: not provided.
- Ongoing APR: variable 13.24%-24.24% based on creditworthiness.
- Fees: no annual fee; no late payment fee; no international transactions fee; no over-the-limit fee.
- Cash Back: 3% on purchases made directly from Apple; 2% on Apple Pay purchases; 1% on purchases using the physical card. Added as Daily Cash to customers’ Apple Cash card.
- Cash Back Redemption: anytime for purchases with Apple Pay, transfer to other customers through iPhone Messages app or as statement credit.
- Other perks: a digital version in the iPhone Wallet app and a physical titanium card with no card number, expiration date, signature and CVV code on it for better protection; weekly and monthly spending diagrams; possibility to make bigger or more frequent payments; 24/7 support through Messages app.
Are Apple’s APRs and Fees Really Worthwhile?
At their website Apple indicated Apple Card’s goal as “to provide interest rates that are among the lowest in the industry”. A 13.24%-24.24% APR seems to be quite competitive for a cash back credit card indeed. Both lower and upper limits tend to be one of the lowest. However, the main word here is “variable”. Thus, it is still not clear what rate you will be approved for in the end. In addition, do not forget that there is no intro APR offer that could reduce your costs significantly in the first 6-18 months of use.
As for the $0 fees, of course, they cannot but rejoice. Nevertheless, this does not mean that you can constantly miss the payment due date or not pay off your balance at all. For sure, Apple will come up with some kind of penalty.
The card will be available in the US only this summer and in consideration of its main features may turn rather attractive for iPhone users. So, see all characteristics in proper perspective and decide whether it is a good deal for you.
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