Apple is one of the most popular companies in the world. His fan base is fiercely loyal. Heck, if you’re even wondering if you should ever get an Apple Card, you’re probably one of those fans.
But does the card really suit your Apple-centric lifestyle?
Maybe but Only if you are an avid Apple user. Otherwise, this no-year fee card is terrible for those who don’t have an iPhone. The only significant income you will receive with this card is the use of it through Apple Pay – up to 3%. In this case, it’s pretty decent for a card with no annual fee.
Apple Card Overview
- Suitable for: Anyone who makes frequent payments with Apple Pay
- Annual fee: $0
- year: From 13.99% to 24.99% varies depending on creditworthiness
- Introductory sentence: Nobody
- Awards: 3% daily in cash at select stores using Apple Pay; 2% daily cash on all other purchases using Apple Pay; 1% daily cash on all purchases when using a physical Apple Card
- Unique features: Refusal to pay interest on the purchase of Apple products; free budgeting software for your iPhone
Pros and cons of Apple Card
Pros:
- Decent return rate You’ll get 3% cash back at select stores and 2% back on all other purchases when you use Apple Pay.
- Rewards are instant – The cashback you earn is credited to your account on the same day it was earned.
- No annual fee This card is free to keep forever.
- Interest-free funding for Apple products – You can buy a new Mac, iPhone, iPad, and more with monthly Apple Card payments and pay no interest.
Minuses:
- No sign up bonus Most cards (even without an annual fee) offer some form of signup bonus. Apple Card loses out here.
- Rewards can only be used in the form of cash − Many competing cashback cards offer the option to convert your rewards into airline miles and hotel points. Apple Card is not one of them.
- Terrible interest rate for those who do not use Apple Pay – You’ll get a meager 1% cashback when you swipe an Apple Card instead of paying with Apple Pay.
An in-depth analysis of the Apple Card
Awards
Apple Card earns daily cash that is returned to your account the same day you earn it. You do not have to wait for the end of the billing cycle, as is the case with most other bonus cards.
Here are the card earning rates:
- 3% cash daily on Apple Pay purchases with Apple, Ace Hardware, Duane Reade, Exxon, Mobil, Nike, Panera Bread, T-Mobile, Uber/Uber Eats and Walgreens
- 2% cash daily on all other Apple Pay purchases
- 1% daily cash on all purchases made with your physical Apple Card
As you can see, if you don’t have an iPhone, the card is vastly inferior to other cash-back credit cards with no annual fees.
Read more: The best cashback credit cards
Bonus for registration
More precisely, without a bonus for registration.
This is a big deal. You will not receive a bonus for opening an Apple Card. Compare this to other cards with no annual fees, such as:
Apple is confident enough in the benefits of its cards to deny you a welcome offer.
Read more: Best credit card sign up bonuses
Annual fee
Apple Card does not charge an annual fee. This means that the risk of opening is very small. You can test drive it for a year and decide if it suits your lifestyle. If not, you can undo it if you want – no harm done.
Or, even better, you can just toss it in the sock box. The longer you hold the card, the more value it will bring to your “credit history”, which is an important factor in improving your credit score. Just remember to use it once or twice every six months – some credit card issuers will preempt your credit card if you never use it.
Read more: The best credit cards with no annual fees
Other fees
This card prides itself on having no fees. Not only are there no annual fees, but there are also no foreign transaction fees or late fees.
Just note that late fees will result in additional interest. If you do not pay off your balance in full, you are subject to variable annual interest rates ranging from 13.24% to 24.24% depending on your creditworthiness.
Special funding for Apple products
One of the biggest benefits of this card (again, only if you’re an avid Apple user) is its ability to waive interest payments when you buy a new Apple product. You can simply charge your new device with an Apple Card and choose Monthly Apple Card Payments at checkout. Your installment plan will then automatically appear on your card statement in the Wallet app.
If you’re in the habit of buying new Apple devices, it can save you tons of money. Plus, you’ll still earn 3% on those purchases.
Financial health tools
Apple Card offers useful financial tracking tools that will appear in your Wallet app. You can view your spending habits weekly or month by month using color-coded categories to help you identify your personal trends more easily.
You even have the geographic location of each purchase, so if there’s a transaction you don’t recognize, you can see where it happened.
Apple Card versus competitors
Pursuit of Unlimited Freedom®
- Annual fee: $0
- Introductory sentence: $200 bonus after you spend $500 on purchases within the first three months of opening an account. In addition, 5% cash back on grocery purchases (except Walmart and Target)
- Awards: 5% cashback on trips purchased through the Chase Travel Portal; Cashback 3% in restaurants and when shopping in pharmacies; 1.5% cashback on all other purchases
- Unique feature: You can convert your money back into Chase Ultimate Rewards® points (very useful for travel) if you also have a Chase Sapphire Preferred® Card, Chase Sapphire Reserve® Card, or Ink Business Preferred® Credit Card.
We consider Chase Freedom Unlimited® to be one of the best credit cards for everyday spending, especially because it can be used to return the money earned in air miles or hotel points. You can absolutely easily double the value of your rewards by doing so.
However, if you’re most interested in cash back, Apple Card can beat Chase Freedom Unlimited® in non-bonus spending as you can earn 2% daily cash on Apple Pay purchases. Mobile wallets are accepted almost everywhere these days.
Apply for Chase Freedom Unlimited® or read our full review.
Discover a credit card with cashback
- Annual fee: $0
- Introductory sentence: Nobody
- Awards: 5% back on quarterly rotating bonus tiers up to $1,500 spent each quarter (you must activate this offer); 1% cashback on all other purchases
- Unique feature: Discover will match all cashback you earn during your first 12 billing cycles.
The Discover it® Cash Back Credit Card often offers a rotating 5% bonus tier which is very rewarding. Think Amazon, grocery stores, restaurants, etc. These categories change every three months.
And for the first 12 billing cycles, that rate actually doubles to 10% as Discover will match the cashback you earn. This overlap of rewards means you will also receive 2% cashback on all other purchases.
If you don’t have the brainpower to handle the alternating categories, Apple Card is the easier option. As long as you make payments with Apple Pay, you will receive at least 2% cashback.
Should you buy an Apple Card?
Should you buy an Apple Card?
Well, if you’ve immersed yourself in the Apple ecosystem – using Apple Pay regularly to make purchases, always wanting the latest Apple products, etc. – this card will fit like a glove in your wallet.
But literally anyone else should look elsewhere. Competing cards with no annual fees offer huge signup bonuses, flexible rewards that can be turned into valuable travel currency, and smaller permanent benefits.
How to apply for an Apple Card
You can apply for an Apple Card through the Apple Card website or open the Wallet app on your iPhone. You must use your Apple ID to apply.
You can see if you are approved without any impact on your credit score. You will be given a credit limit and you can start using the card immediately via your phone – no need to wait for the card to arrive in the mail.
bottom line
Unfortunately, the Apple Card doesn’t really excel in either category. It brings a maximum of 3% cashback, which is what competing cards can do. You can get 2% cashback on almost every purchase that competing cards can do.
His only trick up his sleeve is the zero interest rate when buying products through Apple. If this is important to you, go for it! For everyone else, there are better options.
Featured Image: Evgenia Parajanyan/Shutterstock.com