Home Forums Apple Mac + Windows PC Apple Card – more information needed

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  • #2710 Reply

    At the March 25th Apple event the company announced the Apple Card. This is claimed to be a new kind of credit card created by Apple. It rethinks the credit card, makes it more transparent, and you can buy things with your iPhone.

    The event was lacking in a lot of detail and the information was so general that it is hard to say whether Apple Card is good or bad. The interest rate is variable between 13% and 24%, but that tells us nothing. At one end of this range the interest rate is good, but at the other end it is really bad. Where will Apple be? We don’t know the actual interest rate so we do not know whether Apple Card is good or bad, or, most likely, somewhere between.

    Apple Card has no fees, but there are many credit cards that have no fees, so this isn’t a benefit.

    You get cash back on purchases:

    • 3% when buying anything through Apple, including iTunes, in-app purchases and so on.
    • 2% when using Apple Pay with your iPhone
    • 1% when using the Apple Card like a regular credit card at a store

    Some other credit cards offer cash back, so it is not unique. It could be good, but maybe not. Cash back is good, but it is easy to imagine a scenario where you get cash back, but you end up paying for it through higher interest charges on borrowing. You get $10 cash back, but end up paying $12 in interest on the purchase for example.

    There was too little information provided at the Apple event and on the Apple website to decide whether Apple Card is good or not.

    #2713 Reply

    Apple owns everything – the card, the phone, the app, the operating system – and will be able to integrate everything better than existing credit card companies.

    Apple’s experience with building iPhone apps will show and I expect the Apple Card app to be the best among credit card apps. No doubt other credit card companies will copy features and they will up their game though. It could get very competitive, which is a good thing for us customers.

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