Apple Card casts a wide net, accepts applications from users with less-than-stellar credit scores

Goldman Sachs, which is in charge of deciding who gets the Apple Card, is accepting some applications from users with less-than-stellar credit scores, according to people with knowledge of the matter.

Hugh Son for CNBC:

Goldman Sachs is casting a wide net for customers of its new credit card with Apple, approving some subprime borrowers for the product… accepting some applications from users with less-than-stellar credit scores, according to people with knowledge of the matter.

From the start, Apple wanted its bank partner to create a technology platform that would approve as many of its 100 million-plus U.S. iPhone users as possible, within the bounds of regulations and responsible lending, according to the people. That’s in line with the tech giant’s desire to provide a good user experience for its customers.

While there is no standard definition for who qualifies as subprime, most fall under a FICO score of 660, and their loans often sour before borrowers with higher credit scores… “Apple is only making one card, so they have to target everyone,” said Ian Kar, author of the Fintech Today newsletter. “It’s not like they’re Chase with multiple cards like Sapphire Reserve to target a higher demographic and other cards for lower segments.”

Apple’s desire to reach as many of its customers as possible with a credit product isn’t new. When Apple held discussions with Capital One about creating a joint card in the late 1990s, Apple co-founder Steve Jobs “had an aversion” to rejecting any of his customers for the card, according to a former executive of the bank.

Goldman won’t provide more credit to a person than their profile suggests they can handle, according to a person with knowledge of the firm’s plans. The card was designed to encourage responsible use, this person added.

MacDailyNews Take: As we wrote earlier this week, “Apple and Goldman Sachs have a big winner on their hands here. Anecdotally, and via our own poll from a few weeks back, it looks like many really want to get their own Apple Card!”