iPhone 7 Upgrade Program - credit check

[Anonymous]

Anyone have experience doing this through Apple ? I really want the new iPhone 7 and this seems to be a good option for financing. I could pay for it in full but this gives you the option to upgrade in 12 months and Apple Care comes with it free. There is an application and credit check, I called and got confirmation that it is a HP. I would hate to leave the garden for this so I want to get your opinions. Would this be considered a new account on ones CR and would it classify as a personal loan ?

The iPhone Upgrade Program is financed through Citizens One Personal Loans.

"Your personal information and credit card.

You will be asked to provide your Social Security number and date of birth for a credit check. You will also need a valid U.S. credit card. Debit cards and prepaid cards are not accepted."

http://www.apple.com/shop/iphone/iphone-upgrade-program

[Anonymous]

Got some clarity on this if anyone was wondering as well. I just got off the phone with Citizens One. You will receive 1 HP from only Equifax. The account itself is considered a 24 month personal loan. It is not reported on your credit report. This plan allows you to pay monthly (monthly charge is dependent on which phone and how many gigs you choose) anywhere from $32/month to $45/month. Now the question is a HP worth being able to finance a cell phone for 24 months with the option to upgrade your phone after 12 months and receiving Apple Care for free.

[Anonymous]

I think it's nice to have the option of getting a new phone at 12 months.

Pricing inclusions are listed under the FAQ:


What do my monthly payments cover?
Your monthly payments spread the full cost of iPhone and AppleCare+ over 24 months. Your first monthly payment also includes any applicable sales tax on the full price of the iPhone and any shipping costs.


Not sure if I want to do all that and then only get $250 upgrade if I want to get a new phone the following year... I need to see more info on this.

[Anonymous]

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@Anonymous wrote:
I think it's nice to have the option of getting a new phone at 12 months.

Pricing inclusions are listed under the FAQ:


What do my monthly payments cover?
Your monthly payments spread the full cost of iPhone and AppleCare+ over 24 months. Your first monthly payment also includes any applicable sales tax on the full price of the iPhone and any shipping costs.


Not sure if I want to do all that and then only get $250 upgrade if I want to get a new phone the following year... I need to see more info on this.

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I'm trying to find more info as well. I'm thinking about just doing it through my service provider which is AT&T. They offer something similar called AT&T next. No credit check is needed, they base your eligibility and possible downpayment on your credit history with AT&T. I've always been on time or early so that shouldn't be an issue. Also AT&T offers 30 month financing instead of 24 months which will lower your monthly payment and they will reduce your monthly rate for the phone if you sign a new 2 year contract. Only downside is that it doesn't come with Apple Care but I already have insurance through AT&T on my line.

IMO a HP is not worth it for Apple Care and just to finance a phone that I could pay off in full right now if I wanted to.

[Siopao]

I've also been exploring this option so I don't become tied to my current provider.  I like the fact that this will enable me to switch providers if I choose to.  

I think it's worth the 1 HP, but what I'm wondering is when I'm able to upgrade will they pull my credit again?  Will I have to basically get an inquiry every time I decide to upgrade?  If that's the case, I would rather pay for the phone in full and buy AppleCare on top of it.  If I decide to sell the phone after a year when I upgrade again, I can always get a partial refund on my AppleCare.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
I think it's nice to have the option of getting a new phone at 12 months.

Pricing inclusions are listed under the FAQ:


What do my monthly payments cover?
Your monthly payments spread the full cost of iPhone and AppleCare+ over 24 months. Your first monthly payment also includes any applicable sales tax on the full price of the iPhone and any shipping costs.


Not sure if I want to do all that and then only get $250 upgrade if I want to get a new phone the following year... I need to see more info on this.

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I'm trying to find more info as well. I'm thinking about just doing it through my service provider which is AT&T. They offer something similar called AT&T next. No credit check is needed, they base your eligibility and possible downpayment on your credit history with AT&T. I've always been on time or early so that shouldn't be an issue. Also AT&T offers 30 month financing instead of 24 months which will lower your monthly payment and they will reduce your monthly rate for the phone if you sign a new 2 year contract. Only downside is that it doesn't come with Apple Care but I already have insurance through AT&T on my line.

IMO a HP is not worth it for Apple Care and just to finance a phone that I could pay off in full right now if I wanted to.

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Honestly, it's not worth the hard pull.  I'm on the fence right now with AT&T service wise, but I refuse to do the NEXT program with them.  I foresee myself just paying outright for the 7 or 7s.  I still may consider this but I need to see the trade in value once this kicks off.

Good luck with your decision NobleFunk.

[Anonymous]

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@Siopao wrote:

I've also been exploring this option so I don't become tied to my current provider.  I like the fact that this will enable me to switch providers if I choose to.  

I think it's worth the 1 HP, but what I'm wondering is when I'm able to upgrade will they pull my credit again?  Will I have to basically get an inquiry every time I decide to upgrade?  If that's the case, I would rather pay for the phone in full and buy AppleCare on top of it.  If I decide to sell the phone after a year when I upgrade again, I can always get a partial refund on my AppleCare.

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This unfortunately sounds like the case. I enrolled in the iPhone upgrade program when getting my fiance the 6S last year and after reading Apples terms a few minutes ago it does state that in order to upgrade you will need to enter and apply for another 24 month loan. I am going to be applying for a mortgage in the next 12-24 months so am trying my best to avoid any HP's until then if I can. The only reason I applied was to give her the option to get the new iPhone every year but it turns out she really doesn't care anyway. I was also thinking about going for the AT&T Next program but they do not offer their phones unlocked so I would not be able to use it overseas when I travel. 

Also, to the original poster, Applecare+ is not "free", if you look at the total amount you'd pay after the 24 month loan it turns out to be the same price as the phone and the Applecare at full price. They just like to put the word free in there so more people purchase Applecare. This was pasted from Apples website:

1. Exercising your Upgrade Option. To exercise your Upgrade Option you must:
   • Trade in your Financed iPhone in good physical and operational condition, as directed by Apple; and
   • Enroll in a new iPhone Upgrade Program which includes applying for and entering into a new 24-month 0% APR installment loan (“New Installment Loan”) with Bank. 

[Xistaben2]

Which means your payment goes up if the phone cost goes up.

Just simply 0% financing which can be done by providers or with like an Apple Rewards card.

[Creditplz]

I'm going through AT&T for my my financing, free unlimited data if you have Direct TV which I do !

[Anonymous]

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@Anonymous wrote:

Anyone have experience doing this through Apple ? I really want the new iPhone 7 and this seems to be a good option for financing. I could pay for it in full but this gives you the option to upgrade in 12 months and Apple Care comes with it free. There is an application and credit check, I called and got confirmation that it is a HP. I would hate to leave the garden for this so I want to get your opinions. Would this be considered a new account on ones CR and would it classify as a personal loan ?

The iPhone Upgrade Program is financed through Citizens One Personal Loans.

"Your personal information and credit card.

You will be asked to provide your Social Security number and date of birth for a credit check. You will also need a valid U.S. credit card. Debit cards and prepaid cards are not accepted."

http://www.apple.com/shop/iphone/iphone-upgrade-program

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To put it in perspective, that's done through Citizens One as you mentioned, what they are doing is acutally financing the full price and AppleCare+ upfront for you, thus creating a monthly 24 installment payment loan. It is a HP but it doesn't report, at least it hasn't since it was introduced with the iPhone 6s last year. It coul dchange at any time honestly as with any lender. Anyone pulling your credit will see the HP but not the actual loan itself.  BTW AppleCare+ isn't free under the program, it's a part of your cost like if you get the iPhone 7 32GB that's $649 and AppleCare+ is $129 your payments are $778 / 24...Upfront you pay the taxes on the full price of the phone and AC and the first installment $32.41

THis is a good option for anyone that likes to upgrade often and prefer an unlocked iPhone. If not do one of the carrier financing options if you're with one of the big four carriers, let it bill on your phone bill and pay for AC+ out of pocket upfront. That way there's no hard pull but you're still getting the benefit of installments with no HP.