Should You Apply For the Apple Card?

Should You Apply For the Apple Card? What are the credit score requirements for the Apple Credit Card?

Should You Apply For the Apple Card?
Photo by Michael Short/Getty Images News/Getty Images

In a move that did not supprise many, Apple announced the Apple Branded Goldman Sachs credit card earlier this year with a large selection of unique an valuable benefts that some consumers may find too good to pass up. There are a few catches that you should understand if you want to apply for the Apple Card?

Requirements to Apply

This credit card is not for everyone but if you choose to apply, you wiill need to meet or exceed the following:

  • An iPhone that supports Apple Pay
  • Be a US Resident
  • Be over the age of 18
  • Have a MINIMUM credit score of 700
  • Have established credit history
  • Report Income

It is worth noting that applying for the credit card, regardless on if you are approved for the credit card will impact your credit score. You should ensure you meet the requirements above and understand the impact of doing a hard pull on your credit history before applying. Even if you do not meet these requrements, there is still a chance that you may not be approved for the card.

Perks and Benefits

The Apple Card advertises itself as a premium credit card without all of the fees associated with these credit cards. The benefits do however fall short unless you are someone who makes frequent stops at the local Apple Store. If you are not someone who shops at the Apple Store frequently, this card falls short of many other cards on the market. The main benefit that those who shop at the Apple Store will get is is special financing on select purchases and enhanced cash back for purchases made with Apple.

Claims

Apple makes several claims about the benefits of this credit card, lets look into each of these benefits to separate facts from the marketing hype.

Claim Remarks
Daily Cash Back - When you buy something using Apple Card, you get a percentage of your purchase back in Daily Cash. Not a month from now, but every day. There’s no limit to how much you can get. And it goes right onto your Apple Cash card, so you can use it just like cash.2 This is mostly true however some purchases that use pre-authorizations may be delayed depending on the merchant

(Use Cash Back) - Order some sneakers. Or send it to your bank account. Or put it toward your Apple Card bill. Or pay a friend back for brunch, right in Messages. Only iPhone gives you that flexibility.

Pure marketing as most credit card companies allow you to cash out any earned cash back, apply it to purchases and use it to pay your bill. The only unique feature is that Apple seems to allow you to transfer cashback to other friends who also use iPhones.

No Fees, not even hidden ones - We want to make it easier to pay down your balance, not harder. So Apple Card doesn’t have any fees. No annual, cash‑advance, over-the-limit, or late fees. No fees. Really. And our goal with Apple Card is to provide interest rates that are among the lowest in the industry.

Mostly marketing - While it is true that the Apple Card does not have any annual fees, or over the limit fees, they do actually charge late fees, cash advanced fees and foreign transaction fees. The "Lowest Interest Rate" statement also does not stand up to other cards.
The first credit card that actually encourages you to pay less interest - Most credit card statements emphasize your minimum amount due. And if you pay just that, it costs you a lot in interest over time. Apple Card is different. When you’re ready to make a payment, Apple Card estimates the interest you’ll wind up paying, based on any payment amount you choose. And it does it in real time, so you can make an informed decision about how much of your balance to pay down.5 Pure Marketing and potentially dangerous. Most creit card companies offer this level of transparancy on the bill. Ideally you should be paying off your credit card in full with each statement, this is far from unique. The dangerous feature of this card is something called "Defferred Interest" which is an intentionally confusing practice that may cause many customers to pay more in interest if they do not pay each statement in full.
A new level of privacy and security - Apple Card is designed to make sure you’re the only one who can use it. All the advanced security technologies of Apple Pay — Face ID, Touch ID, unique transaction codes — are built right in. And the physical card has no numbers. Not on the front. Not on the back. Which gives you a whole new level of security

This statement is mostly true as there are several security benefits to not having a static card number but this is not unique as other issuers such as Capital One allow you to generate virtual credit card numbers. Biometric Security is also nothing new as any other credit card in Apple Pay and even Android Pay have the same feature. TouchID and FaceID are also not immune to attackers with physical access to your phone. 

The statement about enhanced privacy is mostly marketing fluff. It will prevent some retailers from tracking users via loyalty profiles attached to a credit card number such as that used by square. Apple and Goldman Sachs both have access to your purchase history.

 

Our Final Take

After looking over the fine print of this card, we are far from impressed. There are far better cards on the market such as the American Express Blue Cash Preffered which offers more benefits such as up to 6% cash bach on some purchases.