It represents all the things Apple stands for. Like simplicity, transparency, security, and privacy. You can buy things effortlessly, with just your iPhone. Or use the Apple‑designed titanium card anywhere in the world.
Simon Hill for Digital Trends:
While surprise unveilings are not uncommon for Apple, the announcement of a new credit card at its March event was unexpected. The Apple Card promises no fees, cash rewards, and Apple’s trademark commitment to privacy and security. It’s housed in the Apple Wallet app, so you can use it through your iPhone or Apple Watch anywhere that accepts Apple Pay. For places that don’t accept Apple Pay, there’s the titanium physical card with your name laser etched on it.
“This depends on how you spend and on what,” Dana Marineau, vice president and financial advocate at Credit Karma, told Digital Trends. “Since the card rewards you more when you use Apple Pay, the likely target consumer is iPhone users. It may make more sense for an avid Apple fan and user to use this card — those who buy a lot of Apple products or use its subscription services, such as Apple Music, etc.” That’s because you get 3% cash back on Apple purchases – something Apple calls Daily Cash. If you make purchases through Apple Pay, you also get 2% cash back. Use the physical card and you get 1% cash back…
There are other advantages, too. Marineau highlights the lack of an annual fee, late fees, international fees, or over-limit fees. You can redeem Apple’s Daily Cash at Apple Pay whenever you make a purchase, even the same day. You can also use it to pay down your credit card bill or share it with your family and friends.
MacDailyNews Take: We’re going to get Apple Card as soon as it’s available and it will quickly supplant our other go-to credit card immediately, we suspect!
I’m also waiting for this to eliminate my AMEX $90 annual fee.
There is more money in moving money around then in actually doing things or making stuff. You can’t really blame Apple for that, but it is a sign of the problems in the western world.
Ditched them years ago.
Me too.
If that works for you, Rob, then great. But credit cards are fine if used properly, and they can even confer some advantages over a cash purchase, such as purchase protection. Credit cards become problematic when people build up large balances because of financial difficulties, such as a lost job, or by purchasing items/services on credit that they don’t really need and can’t afford.
The evil in credit cards lies with the credit card industry. They have far too much power over the consumer and can crank up interest rates to outrageous levels on outstanding balances on almost any pretext. For instance, pay your utility bill late and you might be facing 22.9% on your credit card balances, even if you have never missed a credit card payment. The credit card companies also have too much control over litigation/arbitration. They literally hold all of the cards.
If you are able to responsibly leverage credit cards as a financial tool and pay off your balances most of the time, then you are fine. If not, then you are in danger of being screwed by the credit card companies.
Honestly, with long term interest rates near historical lows, is there any justification for revolving credit interest rates above ~12%? How can anyone justify 18.9%, 22.9%, or even higher? This should be regulated under usury laws.
Tons of fraud, late payments and defaults justify the rates. If you think you can run a credit card company more lean and make money, by all means do so. People will line up. Of course if you give even bad credit risks super low rates, well, we’ll see how long you stay in business.
Until their card offers 2% cash back on all purchases like the Citi double card, meh, it will never be my top card. I don’t know why apple, as big and rich as they are, are so cheap with regard to their customers. Big fail.
I am a complete Apple fan. They always are most concerned about making their products WORK for the customer. But in this case, how is it better to use the Apple Card without loyalty rewards other than the $3 back. $60,000 spent on Apple Card gets you a rebate of $1800.
Using a Chase Sapphire Reserve card gets you, with bonuses, effective about 2 points per dollar spent, or 120,000 points for $60,000 spent. And using the Chase travel portal with their rebate bonus, 120,000 points gets you about $1800 in purchasing power. If the bonus is 1.5 points per dollar then 90,000 points gets you about $1270 in purchasing power. So these two situations are just about equal in purchasing power. Is there any other reason to keep the Chase card?
I agree with Zombie. I use my Citi Double Cash Card for most purchases, since it pays 2% cash back on everything, unlike Apple’s card which requires the use of ApplePay in order to get 2% cash back. Furthermore, I use the Costco Anywhere Visa Card at Costco for 2% cash back, 3% on travel and restaurants and 4% at gas stations. I use my American Express Blue Cash Everyday card for 3% cash back at supermarkets. Finally, I use my Wells Fargo Cash Wise Visa card for my cell phone bill for 1.5% cash back and free cell phone insurance. I see no advantage in having Apple’s card, except for 3% cash back on purchases at Apple, but I generally don’t buy my Apple products from Apple anyway.
Another +1 for Zombie. Maybe I’d get one of these cards before my next computer purchase, but with the continued butterfly keyboard fiasco, that won’t be anytime soon. In the meantime, it’s Citi 2% for me.
I’m surprised that so many posters carry multiple cards for a measly few bucks here and there.
Cards are meant to be convenient and searching through a library of cards toget the right one isn’t. Nor is monthly. quarterly or annual point distributions that don’t convert to cash easily.
I’m going to get the Apple Card because of its security when used/lost. Having lost a few cards over the last 30 years I can attest to the incredible inconvenience of going back and upgrading card numbers on multiple web sites, after waiting for up to 10 days for a replacement.
Nor did I relish having my card info being kidnapped on a trip to England, and used all over Spain. THAT was inconvenient as hell.
For such a small benefit, I think the multicard advocates are shills for competing firms.
It’s not that complicated to use a half dozen cards. I DO NOT carry a library of cards in my wallet. I only physically carry 2 cards: Citi Double Cash Card for 2% cash back on everything and my Costco Anywhere Visa Card by Citi for Costco, Restaurants and Gasoline. The Costco Visa doubles as a Costco membership card. The Apple Card will be a MasterCard, and is therefore will not be valid at Costco, which is a store that I shop at once or twice a week. I use my American Express Blue Cash Everyday card at my neighborhood supermarket for 3% cash back, but since my supermarket accepts ApplePay, I never carry the card. My cell phone bill is on auto-pay; I don’t physically carry my Wells Fargo Cash Wise Visa card to take advantage of the free cell phone insurance. My Amazon Prime Visa Card by Chase is stored in my Amazon account, so I don’t need to carry the card in order to get 5% cash back. Once a year, usually in December, I request to have my rewards electronically deposited into my checking account or I request a check in the mail, which I deposit by taking a picture of it with my iPhone. When I make online purchases, I take advantage of Citi’s virtual card number service, so I create a unique use-once card number for each online purchase. That’s provides me with security against card number theft if the online merchant experiences a data breach. If I travel outside of the USA, I still carry just 2 cards: my Costco Visa and my Amazon Visa because those cards don’t charge international transaction fees.
Useful information, BB. I appreciate the guidance. While I do not plan to implement your comprehensive credit card portolio, the combination of the Citi Double and the Costco Anywhere Visa seems like a winner. I might consider adding the AmEx Blue Cash for groceries, although that expense has dropped quite a bit now that the kids are moving out.
Greg gets it!
I’ll apply as soon as I can — you can never have too many credit cards. Like others, we use Costco at Costco, Target at Target, AMEX for groceries, etc. This will become our App Store/iTunes card.
Nowadays most people do not have the self control to use a credit card properly. The only way to use it properly is to pay off the balance entirely monthly. Otherwise forget sales to save money, as the interest charge wipes out that savings. And you are hostage to the prime rate increases. Kudos for Apple to provide the tool that should open some eyes on how much interest really costs you. Learn wise money management and your life will be better for it. And not from Social media or any media.
By the way, for those of you who have the Citi Double Cash Master Card, did you notice this interesting comment printed on the last page of your July statements? “Effective September 22, 2019, Worldwide Car Rental Insurance, Trip Cancellation & Interruption Protection, Worldwide Travel Accident Insurance, Citi Price Rewind, 90 Day Return Protection, Damage & Theft Purchase Protection, and Extended Warranty will be discontinued and will no longer be provided for purchases made on or after that date.”