When I was in law school in the 1990s, I used a credit issued by Apple. You could earn points that could be spent on Apple products, and after using it to pay my rent and for other purchases, I earned enough points to purchase a Mac at an extreme discount. Starting this week, if you live in the United States, you can now apply for a new credit card from Apple (in partnership with Goldman Sachs) called Apple Card.
Sign up
Signing up for the card couldn't be easier. Open the Wallet app on your iPhone and tap the plus at the top right to add a new credit card. Then select the Apple Card.
Next, confirm some basic information about yourself such as your name and address. Apple already knows all of this stuff you probably won't have to enter anything other than the last four digits of your Social Security number and your annual income.
Apple will then tell you what credit limit and APR you are approved for. I was instantly approved for $15,000, but I've heard reports of others being offered a higher and lower limit. Apple says that the APR ranges from 12.99% to 23.99% depending upon your credit history. Apple offered me 12.99%. And the whole process took just a few seconds to be approved.
Using the Apple Card
When you are at a store that accepts Apple Pay, you can use the Apple Card on your iPhone or Apple Watch just like any other credit card. In the Wallet app, you can see the number, expiration date, and CVV associated with the Apple Card so if you need to pay a bill online, you can enter that information. The Apple Card is a MasterCard, so it is widely accepted.
Apple will also ship you a physical card. I saw one a while back, and it looks distinctive because it is made of titanium and is laser-etched with your name. Notice that I didn't mention your number; the number is not printed on the card itself as a way to reduce the risk of theft. (If someone asks you for the number, you can just look it up in the Wallet app on your iPhone.)
Why use it?
Most of us select a credit card because of the rewards and benefits that the card provides. The same is true with Apple Card. Here is what you get:
Daily Cash. Every single time that you but something with the Apple Card, you get cash back. If a store doesn't take Apple Pay, or if you use the physical card, you get 1% back. If you use Apple Pay to make a purchase, you get 2% back. And for certain purchases, you get 3% back. For now, the 3% applies to anything that you buy from Apple and for Uber. I'm sure that Apple will add more 3% partners in the future.
If you spend $1500 on an iPhone or a high-end iPad, that's $45. Apple virtually never discounts its hardware, so this is a rare way to save money on an Apple purchase. And if the rumors are true and Apple comes out with a car at some point in the future, I suppose you can save $1,500 on what is sure to be a futuristic vehicle.
Spending summaries. Apple is promoting the Apple Card as a way to improve the way that you manage your money. Thus, the app shows you weekly and monthly summaries, color-coded by category.
Maps. The app can also show you where you were when you purchased something, which can be helpful if the name of the vendor is unclear and you are trying to figure out what a purchase was.
Payment aids. Of course, it is best to pay off the Apple Card credit card every month when due on the last day of the month. But if you cannot, the app helps you to understand how much interest you will accrue making a partial payment. The app also lets you pay multiple times a month, which keeps interest lower.
Fraud detection. The app alerts you instantly when there is a purchase, so if you don't think that the purchase was legitimate you can immediately do something about it. And by "do something" you actually text Apple, which means no long phone calls and being placed on hold.
Privacy. Apple has implemented numerous steps to keep your use of the Apple Card private. For example, your spending habits are not used for internal or external marketing.
No fees. There are no fees associated with Apple Card. Even if you go over your spending limit. Even if you pay late. Even if you have a foreign transaction.
Conclusion
The Apple Card isn't right for everyone, and you may have another credit card that offers rewards that work better for your lifestyle. But the Apple Card is very easy to sign up for, very easy to use, and seems very clear in the benefits that you get. As you can see from the pictures above, I started the process of applying but then stopped before I got to the last stage, simply because I don't really need another credit card in my life right now. But I may reconsider and sign up for the Apple Card when I am ready to make a larger purchase of an Apple product to take advantage of the 3% discount.
