Money Analysed

Is the Apple Card Worth It? Exploring Its Benefits and Alternatives

The launch of the Apple Card in August 2019 marked a significant milestone for the tech giant as it made its entry into the financial services industry. The Apple Card is a credit card created in partnership with Goldman Sachs, known for its sleek design, appealing cashback rewards, and a range of benefits that set it apart from other credit cards.

In this article, we will explore the reasons to get the Apple Card and the various benefits it offers to its owners.

Reasons to Get the Apple Card

Apple Related Benefits

One of the primary reasons to get the Apple Card is the benefits that Apple provides to its users. The card allows members to take advantage of exclusive deals on Apple products such as discounts on purchases or interest-free payment plans.

For example, using the Apple Card, customers can buy a new iPhone and pay it off interest-free over 24 months with no fees at the time of purchase. It is an excellent opportunity to buy the latest iPhone or Macbook without having to pay extra fees or interest rates.

Cash Back Rewards

The Apple Card offers some of the highest cash back rewards on purchases. Cardholders earn up to 3% cashback on all purchases made through Apple, including Apple Store, iTunes Store, and App Store purchases.

Members also receive 2% cash back on all other transactions made using Apple Pay, and 1% cashback on purchases made using the physical Apple Card. Furthermore, the cashback rewards are deposited daily to the user’s Apple Cash account, also known as the Daily Cash.

Other Benefits

Immediate Use

Apple’s credit card offers instant approval for eligible applicants. The card application process takes only minutes and provides an instant decision, allowing the user to start making purchases immediately after approval.

This feature is especially beneficial to individuals who are planning to buy Apple products or those who need a credit card for an emergency situation.

Metal Card

The Apple Card is a metal credit card made of laser-etched titanium. The card has a sleek design and unique texture, making it a status symbol among credit cards.

The card does not bear any numbers such as the card number, expiry date or CVV printed on the front or the back, ensuring the user’s security and privacy.

No Fees

Apple Card has no annual fees, foreign transaction fees, late fees, over-limit fees, or any other hidden fees. Also, users are not required to pay any charge or interest rates on purchases made through Apple’s Monthly Installment payment plan.

This feature makes it easier for individuals to budget their expenses and reduce expenses related to credit card usage.

Apple Card Family

The

Apple Card Family feature allows users to share credit lines with other users and build their credit score together. Users can add each other to their Apple Card accounts as a co-owner, meaning that they share the same credit line, but each user’s usage is reported separately to the credit bureaus.

Moreover, when users share their credit lines with their children, they can monitor their spending and set spending limits, providing a safer and controlled way for children to learn about finances.

Apple Card Monthly Installments

The

Apple Card Monthly Installments feature offers Interest-free payment plans on purchases made through Apple. This feature allows users to spread the costs of Apple products over six, twelve, eighteen, or twenty-four months without any additional fees.

Apple Card Monthly Installments feature is available on eligible purchases made at Apple Stores, Apple online stores, and Apple authorised resellers. Users can take advantage of this feature to buy the latest Apple products without worrying about high-interest rates or hidden fees associated with traditional credit cards.

Trusted Partners

Apple partnered with Mastercard and Goldman Sachs to provide its credit card services. The partnership allows members to use the Apple Card seamlessly with any merchant that accepts Mastercard.

Goldman Sachs, on the other hand, handles the issuing of the Apple Card and its related financial services. The partnership between these two trusted partners ensures that users have access to secure and reliable credit card services.

Conclusion

The Apple Card provides numerous benefits to its owners, including cashback rewards, exclusive Apple-related benefits, and no hidden fees, among others. Its unique features such as the

Apple Card Family, instant approval, and metal card design make it stand out in the credit card market.

The Apple Card provides an opportunity for individuals to buy Apple products with interest-free payment plans, build credit through its Family share feature, and offers a daily cash-back rewards competitive with other cashback credit cards.

When the Apple Card is Worth It

Apple Purchase Habits

If you’re someone who frequently purchases Apple products, getting the Apple Card can be worth it. The card gives you the option to pay off your new Apple products over time with zero interest rates.

You can also earn 3% cashback on Apple purchases, including the Apple Store, the App Store, and the iTunes Store. Buying Apple products with the Apple Card can help manage your expenses more efficiently and earn cashback, making it a great option for anyone who has regular Apple purchase habits.

Cash Back Earnings

The Apple Card offers a simple and transparent cash back rewards program. You can earn 2% cashback on any purchase made using Apple Pay and 1% cash back for all purchases made using the physical Apple Card.

The Daily Cash rewards are automatically deposited back to your Apple Cash account, which you can use to pay off your balance or transfer to your bank account. If you use your Apple Card for most purchases and make timely payments, the cashback earnings can add up significantly over time.

No Fees

The Apple Card has no annual fee, no foreign transaction fees, and no penalty fees, which means you can use it anywhere in the world without worrying about incurring any additional costs. Unlike traditional credit cards that charge late fees or increase interest rates if you miss a payment, the Apple Card has no such fees.

Additionally, the Apple Card does not have any over-the-limit fees, making it accessible for those with modest or tight budgets.

Apple Pay Usage

If you use Apple Pay frequently to make purchases, then the Apple Card can be worth it. The card offers 2% cash back on purchases made using Apple Pay.

This feature is an excellent incentive for frequent Apple Pay users to switch to the Apple Card. Apple Pay is available at many merchants worldwide, including small businesses, grocery stores, and restaurants, making going cashless a breeze.

Sharing Card Access

The

Apple Card Family feature allows cardholders to share their credit line with other users, making it easier to manage expenses and build credit together. The

Apple Card Family feature lets you add up to five people to your account, and can be a useful tool to manage your family’s expenses.

Additionally, each user’s spending is reported separately to the credit bureaus, so the credit score of each user stays independent of others.

When the Apple Card is Not Worth it

Android Product Users

If you’re an Android user, the benefits of owning an Apple Card are limited. You will not be able to take advantage of exclusive Apple-related benefits that come with owning the card, such as installment plans and discounts on Apple products.

Additionally, the 3% cashback on Apple purchases will not be as relevant if you do not have any intention of purchasing Apple products. Limited

Apple Pay Usage

If you rarely use Apple Pay to make purchases, the Apple Card may not be worth it for you.

You will only earn 1% cashback on purchases made with the physical Apple Card, which is lower than other credit cards on the market. This feature may not be significant enough to justify owning the physical card, especially if you do not make any significant purchases with it.

Preference for Travel Rewards

If you travel frequently, you may be better off with a travel rewards credit card instead of the Apple Card. While the Apple Card offers cashback rewards, travel credit cards provide greater value, earning points or miles that you can redeem for free flights, hotels, and other travel-related expenses.

Unsupported Bonus Categories

The Apple Card offers cash back on a limited range of categories. While 3% cashback on Apple purchases is an excellent incentive for Apple product enthusiasts, purchases in other categories do not receive the same level of rewards.

If you primarily purchase products in non-qualifying categories, you will not see the benefits of owning the Apple Card.

Poor Credit

If you have a bad credit score, you may not be eligible for the Apple Card. The application process for the Apple Card involves a credit check, and the card is only available to those with an excellent credit score.

If you have a low credit score, it is best to focus on improving your credit before applying for the Apple Card. Applying for a credit card with a sub-par credit score may lead to rejection, further damaging your credit score and financial reputation.

Conclusion

The Apple Card can be a valuable addition to your wallet if you have frequent Apple purchase habits, use Apple Pay regularly, and want cashback rewards without any fees. However, if you are an Android user, rarely use Apple Pay, have a preference for travel rewards, or have poor credit, the Apple Card may not be worth it.

Consider the pros and cons, your purchase behavior, and the fees associated with the card before making the decision to apply.

Alternatives to the Apple Card

While there are many advantages to owning the Apple Card, it may not be the best fit for everyone’s needs. Here are two alternative credit cards that offer similar benefits:

Chase Freedom Unlimited

The

Chase Freedom Unlimited credit card is a Visa credit card that offers unlimited 1.5% cash back on all purchases. It also offers a welcome offer of $200 cash back after spending $500 in the first three months of opening an account.

Additionally, the card has no annual fee and offers a 15-month introductory 0% APR on purchases and balance transfers. One notable advantage of the

Chase Freedom Unlimited card is its compatibility with many retailers worldwide that accept Visa cards.

It is also a great option if you are looking for a card that gives you a consistent cashback rate on all purchases, without any bonus categories or spending caps.

Citi Double Cash Card

The

Citi Double Cash Card is a Mastercard credit card that offers up to 2% cash back on all purchases. The card allows cardholders to earn 1% cashback on all purchases and an additional 1% cashback when they pay off those purchases, effectively providing 2% cashback on all transactions.

The card has no annual fee and also offers an introductory 0% APR on balance transfers for the first 18 months. One of the significant advantages of the

Citi Double Cash Card is that it offers cashback on all purchases, providing users with more flexibility to earn rewards and build their savings.

Additionally, the

Citi Double Cash Card offers frequent bonus categories such as restaurants, travel, and gas, which can increase cashback earning potential.

FAQs

Apple Card Benefits and Use Cases

Q: What are some use cases for the Apple Card? A: The Apple Card is a great credit card option if you frequently purchase Apple products and services.

It is also beneficial if you use Apple Pay regularly and want to earn cashback on your purchases. Additionally, the Apple Card is an excellent option if you want a credit card with no annual fees, foreign transaction fees, or late fees.

Payment Network

Q: What payment network is associated with the Apple Card? A: The Apple Card is a Mastercard-issued credit card, which means it is affiliated with the Mastercard payment network.

Mastercard is one of the largest payment networks worldwide, with millions of merchants accepting it globally.

Credit Limit

Q: How can I increase my credit limit on the Apple Card? A: To increase your credit limit, you can request a credit limit increase through the wallet app on your iPhone.

Go to the Apple Card information screen, click on the “” icon in the top-right corner, and select the “Request a

Credit Limit Increase” option. You can also increase your credit limit by making timely payments and maintaining a low credit utilization rate.

Conclusion

In this article, we explored the benefits and drawbacks of owning the Apple Card, along with alternative credit card options and frequently asked questions. The Apple Card offers a range of benefits such as exclusive Apple-related discounts, no fees, and competitive cashback rewards.

It is a great option for frequent Apple customers who want to earn cashback on their purchases and have a convenient way to pay off Apple products over time. However, it is essential to compare credit card offers to find the one that best fits your needs.

The

Chase Freedom Unlimited and the

Citi Double Cash Card are two examples that offer cashback rewards, no annual fees, and a range of benefits similar to the Apple Card. Overall, the value proposition of the Apple Card is significant for those who can take full advantage of its benefits, especially frequent Apple customers and users of Apple Pay.

The ability to earn cashback on purchases made through Apple, use interest-free payment plans on Apple products, and share the credit card with other users adds significant value to owning the card. However, it is crucial to consider your spending habits, payment preferences, and other factors when deciding which credit card to use.

Evaluating credit card terms, interest rates, annual fees, and other benefits can help you make an informed decision about which credit card is the best fit for you. In conclusion, the Apple Card offers a great option for those who want to earn cashback on their purchases, take advantage of exclusive Apple-related discounts, and manage their expenses efficiently.

However, comparing credit cards is crucial to finding the right fit and ensuring that you are getting the most out of the credit card. In summary, owning the Apple Card can be beneficial for frequent Apple customers and users of Apple Pay, providing cashback rewards, no fees, and exclusive Apple-related discounts.

However, it is crucial to compare credit cards and consider individual preferences and spending habits to find the best fit. Alternative credit card options like the

Chase Freedom Unlimited and

Citi Double Cash Card offer similar benefits, and evaluating the terms, interest rates, and annual fees are essential before making a decision.

Ultimately, the main takeaway is to choose a credit card that aligns with one’s financial goals and needs, ensuring that the card’s benefits and value proposition make a worthwhile addition to one’s financial portfolio.

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