has our attention. Apple's new mostly digital credit card which is an extension of Apple Pay promises approval within minutes, up to 3 percent cash back, no late penalties and virtually no extra charges to use. Published by Goldman Sachs and Master Card, Apple's seems to be almost too good to be true.
Maybe it is. We dive into the fine print to see what types of details we could reveal about Apple's major interference payment cards. We're not trying to discourage you from signing up for Apple Card ̵1; we can't wait to try it either – but like all credit cards, there are ins and outs to knowing when to choose the right one for you
Here's what we learned through to read Apple's footnotes.
You still need to qualify
During his presentation on Monday, Apple made it as if someone could open the Wallet app, apply for the Apple card and start using it a few minutes later. That may be the case for many, but you still need to qualify to be approved for an Apple card. Apple has not shared the details, but clarified that you must qualify:
US customers can now sign up for the latest Apple Card news at apple.com/apple-card. Apple Card will be available to qualified US customers this summer.
You can still earn Daily Cash rewards without an Apple Cash account
Daily cash is what Apple calls a 1 to 3 percent cash back reward you get each time you use the Apple Card online or in stores. So what is Apple Cash and why is it relevant? Good question. It seems to be related to the Apple Pay Cash card, which includes a peer-to-peer switch system such as Venmo or PayPal that lets you send money to other people using iOS. You can also use it to shop in stores, in an app or online just as you would with a credit card linked to Apple Pay. Expect these two names to merge in the future.
Apple says an Apple Cash card is required to receive Daily Cash, but if you don't have an Apple Cash account:
Daily money can be applied by you as a credit to your statement balance. Daily cash is subject to exceptions and additional details apply. See the Apple Card Customer Agreement for more information.
There is a limit on unlimited daily cash rewards
Apple stroked for unlimited daily cash winnings, meaning there is no arbitrary cap on how much money you can make. So, for example, if you were to spend $ 6,000 on the purchase of iPhones ($ 1000 on Amazon) for the family, you could earn $ 180. If you spend more than that, you could earn more.
It's all theoretical. In fact, you will manage if you try to exceed your credit limit. So, if your limit is $ 3000, you can only make $ 90 in Daily Cash for the next billing period. If you are a maximum of $ 10,000, you can earn up to $ 300.
The credit limit is a common part of being issued a credit card. Usually the better your credit and the longer your maturity with a credit card, the more credit your bank will extend over time.
Keep track of interest rate estimates
An Apple Card feature that Apple celebrated is the ability to track how much you are required to use the app. If you do not pay your balance at the end of the month, you can tell the app how much you pay. Apple's software will then calculate the interest cost for you so you can see how much more you have to pay to clear your balance.
The nice print here is not a "gotcha", it's just a reminder that the estimate is based on your balance when using the app. Pending transactions and other purchases you make before the end of the billing cycle do not enter into the interest rate estimate.
Late payments cost you
Let's talk about fees. Apple Card does not charge you if you are late in payment, and there are no annual fees, international fees or fees to cross your limit. All that is good.
But yes there is a catch. While Apple does not charge you a penalty for missing a payment – eg. no $ 25 late fee beyond what you already owe – you still get paid interest. According to Apple's website:
Late or missed payments lead to additional interest accumulating against your balance.
In other words, Apple gives you no money for nothing.
Interest rates still apply (of course)
In terms of interest, Apple did not specifically discuss the interest rates when it showed the Apple card, but looking at footnotes on the site becomes clear:
Variable APRs range from 13.24 percent to 24.24 percent based on creditworthiness. Prices as of March 2019.
The software may change, but no big surprise there
The final takeaway from the Apple Card fine paper is not particularly shocking. It is that Apple Card software may change as Apple reviews iterations of its app and service.
However, it is enough a reminder that software, such as services, is changing and maturing. Apple Cards terms and services may change before it is launched this summer, so if you are interested in signing up for a card, check the terms before logging into the digital line.
Published March 25 at 2:41 pm PT.
Update, 4:54 p.m. PT : Added details about Apple Pay Cash.
Updated latest March 26 at 10:32 pm PT