In August 2019, Apple announced that it would launch its credit card, the Apple Card. The Apple credit card joined the market with the promise of disrupting how the credit cards space functions. During its launch, Apple promised that this card would come with smart features matched by none. So, did Apple live up to their hype? This article will discuss the Apple Credit Card, how it works, and the benefits of using the card.
What Is the Apple Credit Card?
The Apple Card is a credit card designed by Apple Inc. for Apple Pay but also to function like traditional credit cards. Apple released this card in partnership with Goldman Sachs, which acts as its issuing bank to optimize transactions. However, this card is similar to other traditional cards such as Mastercard, with the only difference being its affiliation to Apple.
How Does It Work?
Apple designed their card for use with Apple pay. The Apple card works similarly to traditional cards, meaning that you can use it with other debit or credit cards in the Wallet app. You can also enjoy other benefits like setting the Apple Card as a default payment method where you can use it for online and in-store purchases.
What Are the Benefits of Having the Apple Credit Card?
There is a lot of buzz going around about the Apple credit card, revolving around its simplicity and smartness. Apple describes its card as a simpler and smarter alternative. The popularity of the credit card is enough proof that the card does more than what other cards do. Here are some of the celebrated benefits of the Apple credit card;
- Seamless application process: You can apply for a card in less than 5 minutes.
- Cashback guarantees: Every time you pay with your card, you get a 3% daily cashback for all purchases in Apple stores and 2% cashback for other purchases, allowing you to save on cash with every transaction.
- Apple card family: The Apple Credit Card allows you to choose who will be part of your credit card family. After adding members to your family, they can start using the card right away.
- Co-owners: The Apple Card also comes with co-ownership options. This option is not only useful in spending money, but it also allows the co-owners to build their credit score as equals and enjoy cashback.
- Payment reminders: The feature allows you to set reminders every time you need them. You can also see all the Apple Card monthly installment details in the Wallet app. The reminders ensure that you never miss any payments.
- Smart payment suggestions: The Apple card takes care of all your financial needs. It gives smart payment suggestions so you can pay off your debts faster. Smart payment is a money management feature that monitors your spending and makes suggestions.
- No fees: There are no other fees while using the Apple card. Fees such as late fees, annual, over the limit, and cash advance do not apply.
- MasterCard Network: The Apple Card is nested under the MasterCard network. This makes sure that the card is secure and safe since MasterCard is a global leader in card security.
How to Apply for the Apple Credit Card
Applying for the Apple Credit Card is simple. Here’s how to do it:
- Open the Wallet app on your iPhone.
- Tap the + on the upper right corner of the screen and select Apple Card. A form will appear requiring you to provide your details. Fill in the form and submit it.
- After this, wait for your approval, which will only take a few minutes. Once you have been approved, you can start using the card immediately.
Once you get your card, you can use it in three ways. The first way is through the Wallet app and on Apple Pay. The second method of using the card is swiping the physical card when making purchases in physical stores. The third method is where you only need to give the credit card number to a merchant when purchasing on online stores.
What Is the Credit Limit of the Apple Credit Card?
The credit limit on this card varies for every user. However, users can also request an increase on their card by chatting with the Apple specialists they are unsatisfied with what they’ve been offered.
To view your limit, open the Wallet app on your phone, then tap on the Apple Card option. Select the More button, then scroll to Credit Details to see your limit.
To request a limit increase, scroll up to the message button and type a message to request a limit. Goldman Sachs will review your history and credit information before granting your request. You will need at least six months of payment history to increase your limit.
What Credit Score Do You Need?
To qualify you need a fair or average credit score of at least 600. However, Apple also considers clients with scores ranging from 580-669. Unfortunately, if your credit score is lower than this, you don’t qualify for this card.
If you do not qualify for the Apple card, do not give up. Join the Path to Apple Card program, meant for people wishing to have the card who have lower credit scores. This program consists of credit-building tasks to help you improve your credit score and gain eligibility for the card.
Does the Apple Credit Card Help Build Credit?
An Apple card promises you more than just the ability to pay bills. If you use your card responsibly, then the card will help you build your credit over time. To improve your score, make sure you make timely payments and keep your balance as low as possible. Remember that Apple is currently reporting all of your credit activity to credit bureaus such as Equifax and Transunion. Therefore take advantage of the card and increase your credit scores.