All you need to know about the new Apple credit card

Apple wants a permanent place in your wallet, and from this summer, you can give it one.

The company announced Monday the launch of the Apple Card, a new credit card designed for the iPhone. The map, which is both a digital map in the Wallet app and A physical MasterCard is supposed to be easier to use and understand than most conventional credit cards, according to Apple. And it offers fascinating benefits, such as no fees and a daily rewards program.

However, as with any new credit card, it is important to read the fine print to determine if the Apple Card is right for you.

A digital map and a physical map

A brilliant laser engraved titanium card with an Apple logo may seem like the ultimate status symbol, but Apple Card is really optimized for mobile payments. This means that you can use it wherever Apple Pay is needed, and you are very much encouraged to do it.

In fact, purchases made via Apple Pay, whether in applications or on NFC terminals of companies, earn 2% of the "Daily Cash" reward, while old-fashioned credit cards yield only 1%. (Apple Pay purchases directly from Apple report the most with a 3% return.)

Keep this in mind when you examine the map. If you are already a big fan of Apple Pay or if you tend to shop at major retailers and other establishments accepting NFC payments, it will probably not be so difficult to keep your card in your wallet and d & # 39; Use your phone. instead (it can actually make things even more convenient). However, if you spend a lot of money in restaurants or in other local businesses that do not take Apple Pay, you will have a hard time maximizing your rewards.

You do not have to worry about the card number

Speaking of the physical map, one of the most interesting aspects of the map itself is that it does not have numbers on the front or back. While this helps give the physical card a minimalist appearance worthy of Apple, it is also useful in practice.

Since your credit card number is generated in the Wallet app, you can change it yourself, without having to make phone calls or issue a brand new card. So, the next time you hear about a retailer presenting a serious violation of your credit card, for example, you will simply be able to access the Wallet app and get a new number.

Another benefit: If you use your Apple card on a website or app that does not accept Apple Pay alone, entering your credit card number should be a little easier than usual. If you use Safari on your phone or Mac, the browser will automatically populate your credit card credentials.

Daily Rewards

Apple Card comes with a rewards program called Daily Cash. It's quite simple and potentially attractive, depending on your consumption patterns. As noted above, you get 3% of Apple purchases (when using Apple Pay), 2% of Apple Pay transactions and 1% of payments made with the physical card. Again, it's worth repeating: you'll want to use Apple Pay as much as possible if you want to maximize your rewards.

But there is another aspect that Apple hopes to distinguish from other rewards programs: you get these rewards every day. While most credit cards require you to wait until the month of the month to qualify for rewards programs, Apple Card allows you to use Daily Cash at the end of the day when funds are deposited on an Apple Pay Cash card.

You can then use these funds in your overall balance or use them as money for your future purchases. You can also use it to send money to friends with Apple Pay Cash, as if you were using a Venmo balance.

You can not add authorized users

This may seem surprising, since Apple insists on sharing the family for most of its new services, but if you get the Apple card, you will not be able to add a family member as a family. authorized user.

Although this is not a major business, it is a disadvantage if you tend to share accounts with a spouse or other family members.

Keep track of your expenses

One of the main selling points of his new credit card is the fact that it aims to improve financial health by facilitating the understanding of information related to payments and transactions. When you view the history of your transactions, the app retrieves information from Apple Maps for easy identification of merchants. The app will also help you understand your spending habits through color-coded charts that seem familiar to anyone who has used a budgeting app like Mint (it also looks a bit like Screen Time, with the exception financial data that replaces applications.)

As for payments, the Wallet app also uses graphs to help you understand how much you will end up paying in interest if you do not pay the full balance. It also allows you to set up more frequent payments if you want to pay more often than once a month.

Apple Card also does not charge a late payment fee because it eliminates the fees associated with many credit cards. There are no membership fees, transaction fees abroad or late fees.

What about interest rates?

The interest rate is one of the most important details of any credit card (and an Apple did not talk much about this event). The company said it expects its rates to be "among the lowest" in the industry, without sharing details on the scene. If you read the fine print, Apple says that interest rates for Apple cards range from 13.24% to 24.24%.

This is a pretty wide range, and your exact rate will vary depending on your credit score and other factors. However, although the high-end is not particularly competitive, an expert who spoke to CNBC said it probably meant that the card would be available to users with less credit than Stellar (Apple does not). has not provided details on eligible credit ratings.) for Apple Card). So, take it into account in potential decisions. As with most cards, the better your credit, the more likely you are to get a great rate – and it's always a good idea to regularly check the amount of your interest you pay if you do not pay all your balance.