topic Re: Apple Card Pros and Cons? in Credit Cards

Apple Card Pros and Cons?

AfroPope — Thu, 13 Jul 2023 23:24:11 GMT

Hi folks,

Trying to see if this is the right move for me.

Right now I've got 3 cash-back credit cards, which I pay off entirely every month. I think I also have one or two store credit cards (Google Store and Samsung? Maybe?) But the newest of those was opened in 2019 and I can't remember when I last used them or what their limits are. The total credit limit on those three cards that I do use regularly is right under $40,000, which frankly is a bonkers amount of money for me to be trusted with access to. My FICO right now last I checked via Experian is hovering around 781.

Minus my student loans, I have no other debt (personal loans, auto loans, medical debt, etc). I do plan to buy a house at some point next year assuming a more favorable market in my area (a man can dream).

I am in the market for a new Mac as my PC that I use for freelance work has finally bitten the dust after a decade. I usually finance my iPhones through my carrier. I'm currently using an iPhone 11, so I'm planning to upgrade this year - is there a benefit to me opening an Apple Card for the 0% interest and on the new Mac and the iPhone in a few months? Do I also get 3% cash back on those, in addition to the 0% financing?

I would not be using the card for anything else unless they do one of those crazy "10% cash back on everything via Apple Pay this weekend" things.

Is there anything I need to be aware of that I am not considering? Do I understand the financing and interest correctly? Is it worth it for this purpose?

As an aside, my credit file is currently frozen - if I do choose to apply, which agency does Apple check? I'd like to make sure to unfreeze it beforehand. Just weighing my options.

Cheers!

Re: Apple Card Pros and Cons?

omegafalcon — Fri, 14 Jul 2023 00:43:19 GMT

I think right now is a good time to open an Apple card espeically if you plan on buying Apple products in the near future. You get 3% back on Apple products even when they have a sale in addition to the 0% financing. You also get 3% back on the App store and in-app subscriptions. I only use my Apple card for apple products and services.There's rumours AmEx might take over the Apple Card which could lead to a card refresh with the possibly of the Apple card being harder to get if Amex takes over. Things to think over.

Re: Apple Card Pros and Cons?

NoMoreE46 — Fri, 14 Jul 2023 01:53:21 GMT

Welcome to My FICO @AfroPope .

Yes you do get 3% back on direct Apple purchases along with the 0% for ## months.

If you're planning on a house within a year then you should consider whether this card is worth the short term gain in lieu of preparing your profile for undoubtedly your biggest purchase.

Your provided score is excellent. I do encourage you to check out the Mortgage section (pose your questions re: impact on applying for a card there.)

Re: Apple Card Pros and Cons?

md_rebuild — Fri, 14 Jul 2023 05:34:23 GMT

My Apple Card has been incredible this far. I've used it to finance 2 of my IPhones and put a few hundred dollars on it every month (and PIF). GS started me out at 7.5CL and I've increased it to $11K.

I'm just anxious to see if GS sells the card off to Amex as hopefully that will make the transition to Amex a bit smoother when I get to 5 yrs, 1 month from my BK7. Always nice to have a relationship with a future lender!

And yes, you get 3% on all Apple purchases. This was a selling point when I knew I was going to get MacBooks and AirPods for family at Xmas.

Re: Apple Card Pros and Cons?

Lou-natic — Fri, 14 Jul 2023 14:49:35 GMT

@AfroPope wrote:
Hi folks,

Trying to see if this is the right move for me.

Right now I've got 3 cash-back credit cards, which I pay off entirely every month. I think I also have one or two store credit cards (Google Store and Samsung? Maybe?) But the newest of those was opened in 2019 and I can't remember when I last used them or what their limits are. The total credit limit on those three cards that I do use regularly is right under $40,000, which frankly is a bonkers amount of money for me to be trusted with access to. My FICO right now last I checked via Experian is hovering around 781.

Minus my student loans, I have no other debt (personal loans, auto loans, medical debt, etc). I do plan to buy a house at some point next year assuming a more favorable market in my area (a man can dream).

I am in the market for a new Mac as my PC that I use for freelance work has finally bitten the dust after a decade. I usually finance my iPhones through my carrier. I'm currently using an iPhone 11, so I'm planning to upgrade this year - is there a benefit to me opening an Apple Card for the 0% interest and on the new Mac and the iPhone in a few months? Do I also get 3% cash back on those, in addition to the 0% financing?

I would not be using the card for anything else unless they do one of those crazy "10% cash back on everything via Apple Pay this weekend" things.

Is there anything I need to be aware of that I am not considering? Do I understand the financing and interest correctly? Is it worth it for this purpose?

As an aside, my credit file is currently frozen - if I do choose to apply, which agency does Apple check? I'd like to make sure to unfreeze it beforehand. Just weighing my options.

Cheers!

If you are planning a mortgage make sure not to apply for any other credit at least 120 days before the mortgage application unless you like preparing explanation letters. I didn't need to myself but I still had to fill out a form and ackowlege that a new account was opened. I think this is one of those things that varies by lender or perhaps because since I have a VA loan it won't ultimately end up underwritten by Freddie/Fannie but I'm not sure exactly. But anyway for traditional lending it's best to have as much time as possible between general credit apps and the mortgage app just in case. In my case I applied for (and was approved for) a credit card then applied for the mortgage later that night...I don't advise doing it just to be safe.

Re: Apple Card Pros and Cons?

AfroPope — Fri, 14 Jul 2023 15:14:30 GMT

Thanks for the insight, y'all.

Just to clarify, if I am buying a home it will be next winter, unless I somehow hit the jackpot and then I'm not worried about any of this.

Right now all of my savings are going towards a down payment or are bookmarked for other impending large expenses (when it rains, it pours) and I generally don't like buying things on credit that I can't pay off immediately, but I need a working computer to make money, so I figured this would be a decent route to go in the grand scheme of things.

Do y'all happen to know which bureau Apple/GS checks on application?

Thanks again for everything!

Re: Apple Card Pros and Cons?

mrphilli — Fri, 14 Jul 2023 16:16:22 GMT

@AfroPope wrote:
Do y'all happen to know which bureau Apple/GS checks on application?

Pretty sure it is TransUnion. That is who they soft pulled when I looked into the Apple Card recently. This Apple Card support web page seems to back that up.

Re: Apple Card Pros and Cons?

CreditCuriosity — Fri, 14 Jul 2023 19:13:06 GMT

TU/Chexs

Re: Apple Card Pros and Cons?

SouthJamaica — Fri, 14 Jul 2023 21:21:30 GMT

@AfroPope wrote:
Thanks for the insight, y'all.

Just to clarify, if I am buying a home it will be next winter, unless I somehow hit the jackpot and then I'm not worried about any of this.
Right now all of my savings are going towards a down payment or are bookmarked for other impending large expenses (when it rains, it pours) and I generally don't like buying things on credit that I can't pay off immediately, but I need a working computer to make money, so I figured this would be a decent route to go in the grand scheme of things.

Do y'all happen to know which bureau Apple/GS checks on application?

Thanks again for everything!

It's best to have no credit applications for at least 12 months prior to a mortgage application.

Re: Apple Card Pros and Cons?

GZG — Fri, 14 Jul 2023 21:35:44 GMT

@SouthJamaica wrote:

It's best to have no credit applications for at least 12 months prior to a mortgage application.

Is it purely a score thing or do home loan underwriters have discretion to just say no regardless of how good the credit is despite the new accounts?

Re: Apple Card Pros and Cons?

AfroPope — Fri, 14 Jul 2023 22:36:41 GMT

I think they have discretion. It's been a few years since I worked in that department (used to do HELOC origination at a large bank and brushed up against the mortgage folks) but I also know the standards have changed very rapidly over the past few years. I've heard 6-12 months, I'm probably 15-16 months out at a minimum. Just wasn't sure where we were at on that these days.

Candidly, at the risk of starting a larger macroeconomic discussion that's well outside the purview of this thread, I don't see it as particularly likely that homes in my area will be affordable to me in the next fifteen to sixteen months, but I don't want to touch my savings or too badly impact my credit just in case.

Cheers!

Re: Apple Card Pros and Cons?

TheRedHat — Fri, 14 Jul 2023 23:08:14 GMT

While there are the obvious things like unlimited 2 percent cashback with 3 percent cashback at certain merchants if using Apple Pay, no annual fee and no foreign transaction fees, there are other reasons why I personally like this card that I haven't seen others mention here.

There is no minimum to redeem cashback. The cashback is available right after your charge is no longer pending, and cashback can be redeemed directly to your bank account within a few days at no additional cost. You do it right from the Apple Wallet itself. The Apple UI actually shows you exactly how much to pay to avoid interest with a simple circle graphic. It is the easiest to use and redeem card that I have ever owned.

The card also doesn't have a physical number and you can set it to periodically change its 3-digit security code (although you'll only get 1 percent cashback if you use the virtual number outside of Apple Pay).

It is my backup card (until I get a travel Visa or Mastercard) if a merchant doesn't accept American Express.

Re: Apple Card Pros and Cons?

Anonymous — Fri, 14 Jul 2023 23:57:59 GMT

@GZG wrote:
@SouthJamaica wrote:

It's best to have no credit applications for at least 12 months prior to a mortgage application.
Is it purely a score thing or do home loan underwriters have discretion to just say no regardless of how good the credit is despite the new accounts?

It's certainly partly a score thing, and of course in the context of a mortgage that can be huge, with a score drop moving you to a higher rate (or worse case not getting approved). The one time I did it, I had to provide some (trivial) extra documentation, stating the nature of the new line of credit that had appeared. Presumably I could have been asked many more details at that point, delaying closing, so obviously worth avoiding unless the card offer is a) really exceptional and b) time limited

Re: Apple Card Pros and Cons?

firefox100 — Sat, 15 Jul 2023 01:05:38 GMT

I would hold off in getting the apple card at this time with all the news about what GS is wants to do with ther creditcard portfolio. I don't understand how GS can lose money on creditcards thay should have never got into creditcard business. If Amex's takes over Apple card will they close any accounts who card holders are on Amex black list?

Re: Apple Card Pros and Cons?

AfroPope — Sat, 15 Jul 2023 01:13:23 GMT

I've had my Amex for fifteen years so I am not particularly worried about that, if it matters.

Minus the GS/AmEx uncertainty, it sounds like there is minimal, if any, downside to me applying for this card for my specific use case and situation, am I reading this correctly?

Re: Apple Card Pros and Cons?

firefox100 — Sat, 15 Jul 2023 01:20:14 GMT

IN your case going over to Amex does not matter, it may matter to others who have problems with Amex or have charge off , or Bk on file. Only thing I would in your case if you plan to get mortgage in the next year or to. Good luck any way.

Re: Apple Card Pros and Cons?

SouthJamaica — Sat, 15 Jul 2023 04:56:43 GMT

@GZG wrote:
@SouthJamaica wrote:

It's best to have no credit applications for at least 12 months prior to a mortgage application.
Is it purely a score thing or do home loan underwriters have discretion to just say no regardless of how good the credit is despite the new accounts?

I'm talking about it from the perspective of the FICO scores. The mortgage scores are the most sensitive to new inquiries and new accounts.

I have no real experience with mortgage loan officers, but I get the impression that some of them have a thing about it.

Re: Apple Card Pros and Cons?

ptatohed — Sat, 15 Jul 2023 05:55:48 GMT

To me a huge con is not being guaranteed at least 2% all the time. The requirement to pay with Apply Pay, otherwise 1%, is a deal breaker for me.

I'd rather get the PayPal card, guaranteed 2% minimum on everything (physical card or digi wallet), and 3% when you use PayPal which includes Apple.com and much more. Unless you need the Apple financing, I can't see how the Apple card comes out ahead.

Re: Apple Card Pros and Cons?

LADave — Sun, 16 Jul 2023 19:04:06 GMT

@SouthJamaica wrote:
@GZG wrote:
@SouthJamaica wrote:

It's best to have no credit applications for at least 12 months prior to a mortgage application.
Is it purely a score thing or do home loan underwriters have discretion to just say no regardless of how good the credit is despite the new accounts?
I'm talking about it from the perspective of the FICO scores. The mortgage scores are the most sensitive to new inquiries and new accounts.

I have no real experience with mortgage loan officers, but I get the impression that some of them have a thing about it.

Interesting - Freddie and Fannie are reportedly moving away from older FICO mortgage score models, and are moving towards FICO 10T and VantageScore 4.0. If I understand correctly, both are initially less sensitive to new accounts, but both also factor in profile trends - so new accounts (and other factors like utilization) will probably still leave a trail.

I'm very curious how much recent accounts will factor into mortgage applications using those scoring models. (Non-Freddie and Fannie mortgages will probably continue to be done with older FICO scoring models for the time being.)

Re: Apple Card Pros and Cons?

LADave — Sun, 16 Jul 2023 19:13:32 GMT

@firefox100 wrote:
I would hold off in getting the apple card at this time with all the news about what GS is wants to do with ther creditcard portfolio. I don't understand how GS can lose money on creditcards thay should have never got into creditcard business. If Amex's takes over Apple card will they close any accounts who card holders are on Amex black list?

I understand there are data points of AMEX closing cards when they take over portfolios that include blacklisted customers.

I have an Apple Card, and I'm also on the AMEX blacklist. (I burned them about 13 years ago and they won't give me a card today because of the previously closed account.)

The odds that AMEX will take over Apple Card looks pretty good, and if AMEX takes over the Apple Card profile, there's a good chance I wouldn't be able to close the account betweenn the time they announce it and the time when AMEX takes it over.

Any thoughts about how it would look on my reports if Amex closes my Apple Card in the future vs if I close the account now?