Apple recently launched the new Apple card, a credit card offered in partnership with Goldman Sachs.
If you don’t already have one, and are curious about the benefits of the Apple Card, read on …
So, what is the Apple Card?
The Apple Card is a mobile-first credit card that is tightly integrated to the iPhone and offers exclusive cash-back benefits for Apple-related purchases. With this card, Apple is really focusing on a very user-friendly experience, security and privacy. For example, a digital version of the card lives in the Wallet app of your iPhone which can be used for online purchases and for contactless purchases in stores.
By using your phone to make a purchase, your credit card number and information is hidden from the merchant, making transactions more secure and private.
So, there is a digital version of your card always available in the Wallet app of your iPhone, and there’s also a physical version of the card. The actual card is made of titanium, and does not contain your card number, expiration date, CVV security code or signature in order to better protect your account information. You can get any of that information from the phone if you happen to need it for any reason.
What are the main benefits of the Apple Card?
- A better user experience: Apple has really gone out of their way to make it easier for you to see exactly how you’re spending your money with the card, with clear weekly and monthly summaries that use actual merchant names and categories, and less gibberish. It’s designed to make it much easier for you to understand where your money is going.
- Cash-back: The card offers 2% cash-back on all purchases when you use Apple Pay, and 1% cash-back when you use the physical card. You get 3% cash-back on purchases made directly from Apple, such as purchases from iTunes, the App Store, Apple Music, and so on. They also added 3% cash-back from Uber, and maybe other companies in the future.
- Security and Privacy: Not printing any account information on the card is just one way the Apple Card improves security. There is no printed statements for the card. You can also generate a new credit card number to use for situation where you need to disclose a credit card number, but would rather not give a merchant your real credit card number. Apple also promises that Goldman Sachs “will never share or sell your data to third parties for marketing or advertising.”
- No annual fee, late fees, or over-the-limit fees: The card basically has none of the fees that you may typically see with other cards. But, you should be aware that they will still report a late payment to credit bureaus, and you will continue to accrue interest on your balance.
There is already a ton of credit cards available for consumers in the U.S.
This card looks will appeal to a lot of people you are fans of Apple products. It’s probably ideal for anyone who already spends a lot in the Apple ecosystem and who really likes the idea of paying with their iPhones as often as possible. You’ll get the most cash-back under those circumstances. The summary and reports of financial activity look really good and informative. And there is definitely some innovative security features available with this card that you cannot really find anywhere else.
On the flip-side, the interest rates range between 12.99% and 23.99%, which is okay, but you can definitely find cards with lower rates than the Apple card. This is the first credit card offered by Goldman Sachs, so it will be interesting to see how that relationship and the card itself develops over time. Also, as of yet, the card doesn’t export data to financial apps like Mint or YNAB. So, if budgeting apps are important to you, this is probably not a good choice right now.
If you want to find out more about the Apple Card, check out this section of the Apple website that explains the card in more detail.
And if you need any help with any of your Apple products in the Atlanta area in general, give us a call or send us a message.