to our attention. Apple's new, essentially digital credit card, which is an extension of Apple Pay, promises approval in minutes, cash back up to 3%, no late penalties and virtually no additional fees to use. Posted by Goldman Sachs and Master Card, Apple seems almost too good to be true.
Maybe that's it. We delve into the details to see what kind of details we could discover about Apple's main disruptive payment card. We do not under any circumstances try to dissuade you from signing up for the Apple Card – we can not wait to try it either – but as with all credit cards, there are back-and-forth You have to know to choose the one that suits you best. .
Here's what we learned from reading Apple's footnotes.
You still need to qualify
During its presentation Monday, Apple hinted that anyone could open the Wallet app, request the Apple card and start using it a few minutes later. This may be the case for many, but you still need to qualify to be approved for an Apple card. Apple did not share the details, but clarified that you will have to qualify:
US customers can now sign up for the latest Apple card news at apple.com/apple-card. Apple Card will be available for qualified customers in the United States this summer.
You can still earn daily cash rewards without an Apple Cash account
Daily Cash is what Apple calls a cash back that you receive every time you use an Apple card online or in-store. So what is Apple Cash and why is it relevant? Good question. It seems to be linked to the Apple Pay Cash card, which includes a peer-to-peer money exchange system like Venmo or PayPal, which allows you to send money to other people via iOS. You can also use it to shop in stores, in an app or online, as you would with a credit card linked to Apple Pay. Expect these two names to merge in the future.
Apple says that an Apple Cash card is required to receive daily cash, but if you do not have an Apple Cash account:
The daily cash can be applied by you as a credit on the balance of your statement. Daily money is subject to exclusions and additional details apply. Refer to the Apple Card Customer Agreement for more information.
There is a limit to unlimited daily rewards in cash
Apple has taken advantage of the unlimited cash daily rewards, which means that there is no arbitrary limit to the amount of cash back that you can earn. So, for example, if you had to spend $ 6,000 to buy iPhones ($ 1,000 at Amazon) for the family, you could win $ 180. If you spend more than that, you can also earn more.
It's all theoretical. In reality, you will get the maximum if you try to exceed your credit limit. So, if your limit is $ 3,000, you can only earn $ 90 in daily cash until the next billing cycle. If you reach a maximum of $ 10,000, you can earn up to $ 300.
The credit limit is a standard part of issuing a credit card. Generally, the more you use a credit card and the more credit you have, the more credit your bank will have, the longer it will last.
Keep an eye on the estimates of interest
One of the features of the Apple card that Apple has celebrated is the ability to track how much you need to use the app. If you do not pay your balance at the end of the month, you can tell the application how much you are paying. The Apple software will then evaluate the cost of interest for you, so you can see how much you will have to pay to clear your balance.
The fine print here is not a "gotcha", it's just a reminder that the estimate is based on your balance at the time you use the application. Pending transactions and other purchases you make before the end of the billing cycle are not taken into account in the interest estimate.
Late payments will cost you
Let's talk about fees. If you are late for a payment, Apple Card will not charge you any fees, and there are no annual fees or international fees or fees to exceed your limit. All that is great.
But yes, there is a trap. Apple will not charge you for lack of payment, for example. no late fees of $ 25 in addition to what you already owe – you will still have imputed interest. According to the Apple website:
Late or missed payments will increase interest on your balance.
In other words, Apple does not give you money for nothing.
Interest rates continue to apply (of course)
Speaking of interest, Apple did not discuss interest rates specifically when it introduced the Apple card, but looking in the footnotes of its website, they become clear:
Variable APRs vary from 13.24% to 24.24% depending on solvency. Rates from March 2019.
The software can change, but no big surprise
The last delivery of the small print of the Apple Card is not very shocking. The fact is that Apple Card software is subject to change as Apple performs iterations of its application and service.
Published March 25th at 14:41 PT.
Updated, 4:54 pm PT: Added details about Apple Pay Cash.
Update of March 26 at 3 o'clock in the morning