There’s no shortage of material written about the credit card Apple announced yesterday. In digging into how all this will work, a few things stood out. While much of this might be obvious to some of you, thought it worth sharing for those still trying to work all this out.
First things first, spend a minute to make your way through Apple’s new Apple Card page.
There’s tons of useful info on the page and, likely, answers to all of your questions.
One thing in particular to notice is the set of images of the physical, laser-etched, titanium Apple Card. Notice the MasterCard logo, as well as the chip on the front and the magnetic strip on the back. The physical card is for you to use in places that do not take Apple Pay. It’s a MasterCard.
Note the lack of a card number, expiration date, and CVV code. They serve no purpose other than as a reminder for when you have to type those things in or read them over the phone. Having them appear on the card does serve as a security risk, so why include them. If you need that info, it’s all contained in the Wallet app on your phone.
Side note: Obvious, I know, but Apple Card is not a good fit if you don’t own an iPhone. Yet another brick for the walled garden.
Another point that supports the Apple Card as MasterCard model is made by John Gruber in this Daring Fireball post:
Footnote 4 on the Apple Card web page says: “Variable APRs range from 13.24% to 24.24% based on creditworthiness. Rates as of March 2019.” What a crock of shit this “low interest rates” line is. Those interest rates are usury, right in line with the rest of the credit card industry. 24% interest ought to be criminal, and 13% is not “low”.
Yup. This is the world of credit card usury. If at all possible, pay off your credit card every single month. Credit card interest rates are beyond awful.
Those awful rates aside, there’s a lot to love here.
There’s the instant cash back (2% on everything you buy using Apple Pay, 3% on everything you buy from Apple). And the incredible detail in the statements, including the ability to tap on a transaction and have the merchant’s location appear on Apple Maps. That last is just genius.
There’s the fact that there’s no annual fee. Zero. And complete fraud protection. Don’t recognize a transaction? Tap it to let Apple know and you won’t be liable for the fraud.
And there’s the 24/7, text your questions, tech support. With a live person at the other end.
I’m digging this. The new Apple Card will definitely have a place in my Wallet.
“Having them appear on the card does serve as a security, so why include them.” This is confusing. you mean not having them on the card is more secure, right?
Good catch. Fixed. Thanks!
— Dave
“Side note: Obvious, I know, but Apple Card is not a good fit if you don’t own an iPhone. Yet another brick for the walled garden.”
The point of the card is that Apple customers are the most credit worthy people on earth.
What Bends In Your Wallet? ™
You know it’s going to. 🙂
Usury. N. A rate of interest the speaker disapproves of.
(Someone making anyone take this card? Or ANY credit card, rather than debit? No? Right.
If 14.67% [industry average for low interest cards, per the interwebs] is “too high”, why isn’t someone undercutting that significantly to take all the market from the competition?
(Credit banks have a profit margin of 4.36%, also per interwebs. This is no license to print money.
Hey, what are Apple’s prices and margins, again? Why isn’t the argument that Apple needs to charge less? No, really. Why?)
Gruber is not an economist, and it really, really shows.
“Credit should just be cheaper” is not policy or analysis. It’s wishing.)
Gruber was reacting to the on stage claim that the interest rates on this card would be low and the implication that they’d materially undercut standard rates. They don’t. They’re in line with every other card.
This would be particularly competitive in Canada. There’s no annual fee-free card that does 2% on everything up here. Hope it makes it up with at least the same reward.
One thing I’d like to know is if it offers any warranty extension, as many credit cards double the manufacturer’s warranty. I imagine not, as it would cut into AppleCare profits.
Is the card application too easy? Just because someone owns an iPhone doesn’t mean he is credit-worthy. Many bought 2nd hand iPhone for cheap.
How’s the apply/accept process handled?
Is the card application too easy? Just because someone owns an iPhone doesn’t mean he is credit-worthy. Many bought 2nd hand iPhone for cheap.
How’s the apply/accept process handled?
u·su·ry
/ˈyo͞oZH(ə)rē/Submit
noun
the illegal action or practice of lending money at unreasonably high rates of interest.
“the medieval prohibition on usury”
synonyms: extortionate moneylending, payday lending; More
ARCHAIC
interest at unreasonably high rates.
u·su·ry
/ˈyo͞oZH(ə)rē/Submit
noun
the illegal action or practice of lending money at unreasonably high rates of interest.
“the medieval prohibition on usury”
synonyms: extortionate moneylending, payday lending; More
ARCHAIC
interest at unreasonably high rates.
When it comes to rewards, this is an average to below average card. There is some value to the cash back being instant, but it’s pretty tiny in the grand scheme of things (particularly with interest rates where they are). The tech stuff is cool, like the location, but the card stuff is pretty much SOP.
https://twocents .lifehacker.com/the-apple-card-is-an-average-rewards-card-1833550903
Gruber is half right; Apple set the expectation that the rates would be lower. But he’s wrong that these rates “ought to be criminal” or amount to “usury”.
Criminalize 24% interest rates, and people with marginal credit won’t get credit cards with 10% interest. They’ll get no credit card at all.
The thing with this “usury” and “criminal” rhetoric is it’s patronizing and acts as if people don’t have agency. No one is obligated to pay interest on debt. You don’t have to apply for a credit card. You don’t have to use a credit card you’ve applied for. You don’t have to carry a balance on the things you buy with a credit card. If you do pay interest, it’s because of the choices you’ve made. Do you really need to be protected from your own choices, and if so, is the solution really to give you fewer choices?
When it comes to rewards, this is an average to below average card. There is some value to the cash back being instant, but it’s pretty tiny in the grand scheme of things (particularly with interest rates where they are). The tech stuff is cool, like the location, but the card stuff is pretty much SOP.
https://twocents .lifehacker.com/the-apple-card-is-an-average-rewards-card-1833550903
When it comes to rewards, this is an average to below average card. There is some value to the cash back being instant, but it’s pretty tiny in the grand scheme of things (particularly with interest rates where they are). I would also say that a 2% balance credit is superior to 2% going onto the Apple Cash card. The tech stuff is cool, like the location, but the card stuff is pretty standard.
https://twocents.lifehacker .com/the-apple-card-is-an-average-rewards-card-1833550903
No one gets forced into taking a credit card, but it can be mighty tough for many folks to buy something like a car or a home (or be considered for an apartment rental) without a credit rating.
I’ll be getting one just because it’s made out of titanium. You can bet I’ll be sharpening that bad boy for emergency use…