Features and benefits
The Apple Card provides a different experience than your typical credit card. Your card and transaction information is all available on your iPhone, and like everything Apple makes, it's well-designed and easy to use. It has a mix of standard credit card perks and some that you don't see often -- or from any other card.
A card that eliminates fees and encourages you to avoid interest
Unlike most credit cards, the Apple Card has no fees. That means:
It's always nice when you don't need to worry about fees when, for example, you miss a payment or make purchases abroad. Just keep in mind that if you don't make your payment for 30 days or longer, it can hurt your credit score.
This card charges interest, but Apple put a unique twist on it. Most card issuers are more than happy if you only make minimum payments on your credit card bill. It works out well for them, because people end up paying quite a bit of interest this way.
When you're making a payment on your Apple Card, it shows you an estimate of how much interest you'll end up paying, based on the payment amount you choose. It will show you a new estimate each time you change the payment amount. This is a fantastic tool that I haven't seen from a credit card before. By seeing how much interest could cost you, it motivates you to pay more.
RELATED: How Credit Card Interest Works
Cash back that you can use right away
The Apple Card is a cash back card, and it earns:
- 3% on purchases made through Apple
- 3% on purchases made through Apple at select merchants that have partnered with Apple, when you pay with Apple Pay
- 2% on purchases made through Apple on other eligible Apple Pay purchases
- 1% on purchases made through Apple on other purchases
These are reasonable rates. The card isn't the biggest earner, but you should have plenty of opportunities to earn at least 2% back. Apple reports that over 85% of U.S. merchants accept Apple Pay.
Apple also handles cash back differently. You get your cash back every day in the Wallet app. From there, you can use it however you like. Apple even offers a high-yield savings account, and you can have your cash back automatically deposited there. Most card issuers pay out cash back once a month, so the Apple Card makes the process much faster.
Interest-free installment plans to pay off Apple purchases over time
As every Apple fan knows, Apple products aren't cheap, but they're worth every penny. Now, the best way to pay for products like these is in full with money you've saved already. That way, you don't end up in debt, making payments on your new iPad or MacBook.
But sometimes you don't have time to wait, like if you need a new computer for school or work. With the Apple Card, you can pay off Apple products interest-free in monthly installments.
Plan options range from six to 24 months, depending on the product. Most of Apple's product lines are eligible for a payment plan, including the iPhone, MacBook, iPad, and even the Apple Vision Pro.
Add family members to your account for convenience and to build their credit
It's easy to share your account with Apple Card Family. This is similar to adding authorized users, which most credit cards let you do. But with Apple, there are two types of users you can add:
- Co-Owners: You and another adult, such as your spouse, can merge credit lines to form a single, co-owned account.
- Participants: You can add anyone who is 13 or older to your Apple Card account so they can learn to use credit responsibly. Those who are 18 and older can also build a credit history this way.
The option to add a Co-Owner is something you don't see often anymore. Very few card issuers offer joint credit cards, where two adults share responsibility for a single account. The Apple Card lets you do this, so it's perfect if you and your partner want to completely merge this part of your finances.
Drawbacks to know about
The Apple Card is unique, which has its advantages and disadvantages. On the one hand, it offers some interesting benefits that most credit cards don't. But it's also missing important benefits that most credit cards have.
The rewards program could use some work
Although this card earns cash back, there are much better options available. Its biggest problem is that it doesn't have a sign-up bonus. Many credit cards offer these for new cardholders, and even with no annual fee cards, you can find sign-up bonuses worth $200 or more. With the Apple Card, you may need to spend $10,000 before you earn that much cash back.
The bonus categories on the Apple Card are also lackluster. The only 3% categories are Apple and select merchant partners where you use Apple Pay.
Other cards earn 3% to 5% back in much broader bonus categories, like groceries, gas, dining, and entertainment. Or, you could get a card that earns a flat rate of 2% on purchases, without any requirement to use Apple Pay. Make sure to look at other credit card reviews to see how the Apple Card compares to what else is available.
LEARN MORE: The Ascent's Best Cash Back Credit Cards Hub
Missing useful extras, including credit monitoring and purchase protections
The best credit cards generally have exciting perks that get all the attention, as well as more low-key extras. Even though they aren't as popular, these extras can be useful. Here are some of the most common examples:
- Free credit monitoring to keep you up to date on your credit score
- Purchase protection covering new purchases that are damaged or stolen
- Extended warranty coverage
- Complimentary rental car insurance
Those are just a few examples of benefits you can get from lots of credit cards -- but not the Apple Card. It doesn't offer purchase protection, something that would be very nice to have on an expensive new MacBook, iPad, or AirPods. This may be the Apple Card, but for buying Apple products, I'd personally pay with a card that has purchase protection.
The Apple Card doesn't have a tool to check your credit score, either. That's surprising, considering Apple's focus on educating consumers about how much interest they'll pay. You'd think it would also want to help them stay on top of their credit rating. You can at least get your credit score online for free, but it doesn't change the fact that many other cards make this easier for you.
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