topic Re: iPhone Upgrade Program financed by Citizens Bank in General Credit Topics

iPhone Upgrade Program financed by Citizens Bank

Anonymous — Fri, 11 Sep 2015 10:08:37 GMT

Apple has begun offering the so-called iPhone Upgrade Program, you'll be able to get a new iPhone every year, the phone is unlocked — you can choose which carrier you'd like to use and you'll be able to pay for the phone with low monthly payments interest free instead of paying the subsidized cost of the phone up front. Upgrade Program comes with AppleCare+ insurance.

The iPhone Upgrade Program is basically just a 24-month installment agreement, much like the ones being offered by the four major US carriers. Once you've paid 12 monthly installments as part of that agreement, you'll be able to swap your phone for a new one. The installment plan is financed by a loan from Citizens Bank, which means — like with the carriers' payment plans — you'll likely have to pass a credit check before you get your phone. The iPhone Upgrade Program is available to qualified customers only with a valid U.S. personal credit card. A 24-month installment loan is required with Citizens Bank, N.A.''

will this be soft pull ?

Re: iPhone Upgrade Program financed by Citizens Bank

kdm31091 — Fri, 11 Sep 2015 10:30:08 GMT

Do you already have a card with them? If not youd have to get one, obviously a HP. Even if you do theres a good chance this requires another HP.

You can do the same thing without opening a special account. Buy an iphone on a CC and pay it off over time. If none of your cards are at a 0 percent promo try and ask for one. Exhaust all options before applying for something this specific that has a one time use.

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Fri, 11 Sep 2015 12:44:49 GMT

@kdm31091 wrote:
Do you already have a card with them? If not youd have to get one, obviously a HP. Even if you do theres a good chance this requires another HP.

You can do the same thing without opening a special account. Buy an iphone on a CC and pay it off over time. If none of your cards are at a 0 percent promo try and ask for one. Exhaust all options before applying for something this specific that has a one time use.

no i do not have Barclay Apple credit card. This is a totally different credior and program i was only interested with the fact i pay up to $1,000 a year on an unlocked cell phone every year or 2 when this programs gets you one each year at a minium. But if i remember opening AT&T im not sure i had a hard pull so i was curious if this would be. I do not bank with Citizens bank who finaces Apple's ''iphone upgrade Program.'' i wonder why not Barclay or Comenity bank (paypal credit) who apple also uses. If it is hard pull then no. You're right i would probably skip iphone 6s and wait for 7 then. But if it's soft pull then what's to lose ? i'll get both phones under the iphone upgrade program.

Re: iPhone Upgrade Program financed by Citizens Bank

kdm31091 — Fri, 11 Sep 2015 12:47:09 GMT

Who said anything about Barclay? If this is financed by Citizens, and you need a Citizens credit card to get it, and you don't have it, you will be taking a HP to open the Citizens CC (and later the iphone upgrade program).

I mean, to each their own, but this is nothing I'd waste a HP on. Discover routinely offers me 0% for a year on my card. You should consider asking them. You can then do the same exact thing -- buy a phone, pay it off slowly -- with no extra HP.

Re: iPhone Upgrade Program financed by Citizens Bank

MACFRME — Fri, 11 Sep 2015 12:51:33 GMT

"The iPhone Upgrade Program is available to qualified customers only with a valid U.S. personal credit card. Requires a 24-month installment loan with Citizens Bank, N.A. and iPhone activation with a national carrier AT&T, Sprint, T-Mobile, or Verizon.http://www.apple.com/legal/iphoneupgrade Full terms apply AppleCare+ for iPhone provides coverage for up to two incidents of accidental damage from handling. Each incident is subject to a service fee plus applicable tax ($79 for iPhone 6 or earlier models, $99 for iPhone 6s or iPhone 6s Plus) 3. Service coverage is available only for the iPhone and its original included accessories that are defective in materials or workmanship or for batteries that retain less than 80 percent of their original capacity. The replacement equipment that Apple provides as part of the repair or replacement service may be new or equivalent to new in both performance and reliability. See terms at http://www.apple.com/legal/sales-support/applecare/applecareplus www.apple.com/legal/sales-support/applecare/applecareplus/ for full details."

This is what their website says. The phrase "available to qualified customers with a valid personal credit card" sounds to me like this may not be an installment loan. Has anyone financed a stereo through Bose before? They don't check your credit, and they let you make payments using your credit card each month. This phrase seems to me like that will be the plan. I'm unsure about the credit check question, but I think it is unclear. I am also wondering about preordering the phone. Will you apply for this program on the internet and find out your approval status then? Or are they "going to help you get setup with the Apple Upgrade Program" inside the store after you have already preordered the phone?

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Fri, 11 Sep 2015 13:12:04 GMT

I had the same question. If it results in a HP and it's just another credit card or loan, what's the point? I'd much rather stick with my AT&T Next program. Although, it's nice that they include Applecare+.

Re: iPhone Upgrade Program financed by Citizens Bank

Simply827 — Fri, 11 Sep 2015 14:00:08 GMT

I'll also point out that this new program is not 0% like offered by the cell carriers. The interest rates range from 11.99% to 19.99%.

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Fri, 11 Sep 2015 16:58:51 GMT

I'm not saying my method was great. I signed up for AT&T next in february, and then used my BBVA nba Card when it was 5% to pay off the big balance I had left. I came out pretty nice with that one.

Re: iPhone Upgrade Program financed by Citizens Bank

Kenny — Fri, 11 Sep 2015 17:32:02 GMT

Lowest interest is 11.99% .. no, thank you. Pretty sure it will be a HP.

Re: iPhone Upgrade Program financed by Citizens Bank

pipeguy — Fri, 11 Sep 2015 18:10:07 GMT

No disrespect meant to the OP, but when is a "phone" worth so much that you need to finance it for 12/24 months and it costs up to $1000 (for a phone !) ?

I typically buy "last years model" unlocked every 3 years or so and spend $300/$400 for it, that way I'm "investing" $100 or so a year and my phone does whatever I need other than offer "flash" to impress people I don't even know. Currently using an HTC One, wife has a 64GB Fire Phone ($199 included 1 year of Prime free) and we use T-Mobile prepaid plans - not the best, but much cheaper every month.

As a data point - low 6 figure income, scores in the mid-700's, more credit cards than I could ever use and about $200k in available credit card limits - I'm not by any means "cheap" but spending $600-$800 on a phone makes no sence to me.

Just so this doesn't become an Apple vs Android issue, my office supplies staff with iPhone 5's and 6's for business use - still don't see the big deal.

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Sat, 12 Sep 2015 05:53:37 GMT

False! Apple upgrade program does not have any interest. Its paid in 24 months. And it sounds like it will be taken out each month from any credit card automatically each month. $32.41 x 24 comes with $130 2 year apple care which included in the installment x 24 months. $649 for 16gb + $129 = $32 a month. Theres no interest. Only if you not pay. Miss a payment you'll get hit probably with interest. I have to wait and see exaxtly how this is done and see if anyone was "hard pulled."september 25th. You can reserved your appointment though at apple.com right now though to pickup and sign up at the store september 25 or whenever is an availa le slot. You must make an appointment at apple store to sign up for apple iphone upgrade program. Cannot online.

Re: iPhone Upgrade Program financed by Citizens Bank

NP27 — Sat, 12 Sep 2015 09:07:20 GMT

Picked up the 6 Plus S in rose gold 128 gb. Could have bought another MacBook for that price. Hehe

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Sat, 12 Sep 2015 09:36:52 GMT

@NP27 wrote:
Picked up the 6 Plus S in rose gold 128 gb. Could have bought another MacBook for that price. Hehe

Me too. Ordered 4 for the whole family. Almost applied barlcay apple card. I was so close! But ived used Paypal Credit instead. Wonder if anyone getting the new ipad mini 4

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Sat, 12 Sep 2015 14:10:20 GMT

It was around $35/mth for Verizon Edge 6plus 64gb now 6s plus $40/mth with Apple direct any carrier you choose.

Idk I think Apple coming out with this option was brilliant for marketing, more ppl will be willing to buy these mini computer phones now.

yet another reason to care about your credit scores.

Typing from my now outdated 6plus.

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Sat, 12 Sep 2015 15:43:54 GMT

I do not see where it says your credit card has to be with them. It just says "valid US credit card", I read that as being ANY credit card from any issuer.

You get a 0% loan for 24 months and every 12 months you can get a new phone by renewing that deal.

Obviously that locks you into iPhone as you would be silly not to take the upgrade but every time you do you sign yourself up to use iPhone for another two years.

Still, why would you pay full price for an iPhone when 0% financing is available?

Where's the catch? Other than you basically Bevin me a lifelong iPhone customer.

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Sat, 12 Sep 2015 16:19:54 GMT

The only way this is better than using a cc with 0% option.. Is auto upgrade, but at that point seems like phone is almost a rental..

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Sat, 12 Sep 2015 17:05:06 GMT

@Anonymous wrote:
The only way this is better than using a cc with 0% option.. Is auto upgrade, but at that point seems like phone is almost a rental..

You keep your phone then. If you brought iphone 7 and 12 months later comes iphone 7S and say "nah i think ill wait for iphone 8, you can. Just keep your phone 7S for another year and before 24 months is up here comes iphone 8 then you can decide then if you want to continue the iphone upgrade for another 2 years with apple care included or drop it and pay the phone upfront in full on a 0% apr credit card. The difference ? I would never pay $32 as payment to a credit card when balance is $700 and most likely minium due will be more than $32. Remember theres a difference between a credit card and an installment loan. An installment loan is fixed. Thats what you pay. Credit card is not. Thats the difference between using a credit card with 0% option vs using the Upgrade program option to purchase your iphone. To cater those who cant afford to pay it in full of course or want to spread their financial wealth in order to gain more bang for the buck.

Re: iPhone Upgrade Program financed by Citizens Bank

Kenny — Sat, 12 Sep 2015 17:27:59 GMT

How does one know there is no interest applied on this upgrade program? Sounds like a rental, though.. even if no interest.

I can't read the terms and conditions on the upgrade program.. maybe they will tell us more later. I hate that you have to schedule an appointment to do it.. how easier would it have been to do this online. (would have been better for people who don't have an Apple store near them.)

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Sat, 12 Sep 2015 21:18:18 GMT

@Kenny wrote:
How does one know there is no interest applied on this upgrade program? Sounds like a rental, though.. even if no interest.

I can't read the terms and conditions on the upgrade program.. maybe they will tell us more later. I hate that you have to schedule an appointment to do it.. how easier would it have been to do this online. (would have been better for people who don't have an Apple store near them.)

You not renting your phone. You paying for membership. To upgrade your phone as you liked in addition having 12 months 0% apr to pay for your phone. Like carriers you pay each month for your phone or you can pay in full. Paypal credit is not iphone upgrade program. I use paypal credit (which i love) because its hidden and does not report or go against your overall ultz. Unlike citizens bank with iphone upgrade program (still waiting) applying for barclay apple visa financing and paypal credit is hard pull. However with paypal credit if you need more credit to finance your purchase its always a soft pull. I went from 250 to 5,000 or whenever i go over my limit it was always a soft pull.

What's the pricing for the Apple upgrade program?

Pricing starts at $32.41 a month for a 16GB iPhone 6S and goes as high as $44.91 for the 128GB iPhone 6S Plus. The pricing is on top of the monthly fee you'll pay for wireless service from your carrier.

Do customers have to return their old iPhone when upgrading to the next model?

Apple's program is essentially an installment plan combined with an early upgrade program. It spreads payments for the new phone over 24 months. Customers can upgrade free after 12 payments. To upgrade, they must trade in their existing iPhone; then the clock resets on the monthly payments for the new device.

If customers choose not to upgrade, they can continue paying off the device. After 24 months, they'll own the phone and can keep it, sell it, give it to a family member or use it as a backup device.

If customers want a new phone after making 24 payments, they can keep their paid-off phone and sign up for a new device, assuming Apple continues the program.

How does pricing for Apple's new plan compare to similar plans from the carriers?

Look at the chart below and you'll see that Apple's program is likely to be pricier than most of the other offers.

Re: iPhone Upgrade Program financed by Citizens Bank

Anonymous — Mon, 14 Sep 2015 03:30:03 GMT

Plainly the 24 months at 0% is a great deal and seems attractive especially if it reports as an installment loan, for people like me building score. It would get me an installment loan on my history, and aa 0% one! I think DW is going to get a new iPhone for Christmas.

But how about the upgrade? You are trading in a phone in exchange for an extra 12 months payments so basically that says the trade in value is worth 50% of the purchase price.

I guess it boils down to whether a used iPhone been be resold for half price of a new one after a year. If they sell for more than half Apple is making money. If they sell for less then this is even better.

Where to get data like that?