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  • Writer's pictureBob Brooks

A Review of the Apple Credit Card


Someone asked me what I thought about the Apple Credit Card. So, I thought a review was in order. Apple users are going to love the Apple Credit Card. If you are not an Apple user, there is room for you to switch your allegiances. Design and technology are what Apple users crave. The Apple Credit Card app, of course, is nothing but top-notch. The app even helps you calculate ways to get out of debt and pay less interest with the touch of a finger. The bottom line is that the app is extremely cool. In fact, I am even tempted to get it.


No Fees


This is their big marketing push. There are no fees of any kind. When I see that pitch, I wonder about late fees. What if you are always late? That would be credit irresponsibility, and credit card companies don’t like that type of behavior. They can always place you in default or raise your interest rate. Fees would be cheaper.

Interest Rates


The interest rates are horrible. However, not as bad as other card companies. On this deal, the range was from 15.74% to 26.74%, depending on your credit. The American Airlines card, as a comparison, ranges from 20.74% to 29.74%.


As far as I know, there is not a 12 or 18 month free balance transfer.


Rewards


The rewards for using the card are strictly cash back. The app immediately tells you whether it is 1%, 2%, or 3% cash back, and you get it immediately added to your cash account. I thought that was pretty impressive. How does that stack up to the competition? Well, one would assume that Apple is not going to put out something that is not competitive. However, Discover has as high as 5% cash back. Then, of course, there are all types of fine print and limitations.


The reality is that there is hardly a good way to compare and contrast these cash-back programs without doing an enormous amount of research. Even then, it will probably come out very close. Remember that the cash-back percentage is dependent on many variables.


Apple Savings Account


What makes this credit card even more attractive is the ability to create an Apple Savings account and connect the two. The new Apple Savings account is currently paying 4.15% on the savings account.


Apple is about to change the banking system with its ability to draw in customers based on technology alone. The combination of new banking products and Apple technology is an unbeatable benefit.


So what is the bottom line?

As you have heard me say on the radio many times – Credit card companies don’t give good deals. They just make you think that they are giving good deals. Just think “politicians”!


Just remember, when you sign your life over to a credit card company, you are agreeing to a pretty awful consumer contract. They can change anything they want at any given time for any given reason…period. Apple is no different. By the way, they are marketing it with the Apple brand, and the card is underwritten by Goldman Sachs.


As far as credit cards go, it looks to be a little better terms and conditions than the competition. The real benefit is the technology which is why people love Apple in the first place. This would be a go for me!


If you have further questions for Bob, please visit the Ask a Question page on the website, and Bob will get back to you.

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