topic Re: Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?) in General Credit Topics

iPhone 7 Upgrade Program - credit check

Anonymous — Wed, 07 Sep 2016 20:21:27 GMT

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

Re: iPhone 7 Upgrade Program - credit check

Anonymous — Wed, 07 Sep 2016 21:54:12 GMT

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.

Re: iPhone 7 Upgrade Program - credit check

Anonymous — Wed, 07 Sep 2016 22:24:45 GMT

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.

Re: iPhone 7 Upgrade Program - credit check

Anonymous — Wed, 07 Sep 2016 22:41:01 GMT

@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.

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.

Re: iPhone 7 Upgrade Program - credit check

Siopao — Wed, 07 Sep 2016 23:50:24 GMT

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.

Re: iPhone 7 Upgrade Program - credit check

Anonymous — Thu, 08 Sep 2016 00:32:48 GMT

@Anonymous wrote:
@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.
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.

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.

Re: iPhone 7 Upgrade Program - credit check

Anonymous — Thu, 08 Sep 2016 01:09:17 GMT

@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.

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:

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.

Re: iPhone 7 Upgrade Program - credit check

Xistaben2 — Thu, 08 Sep 2016 02:15:46 GMT

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.

Re: iPhone 7 Upgrade Program - credit check

Creditplz — Thu, 08 Sep 2016 06:35:22 GMT

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

Re: iPhone 7 Upgrade Program - credit check

Anonymous — Sat, 10 Sep 2016 18:16:47 GMT

@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

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.

Re: iPhone 7 Upgrade Program - credit check

Anonymous — Sat, 10 Sep 2016 18:21:49 GMT

@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.

You get no trade in credit if you do the annual upgrade...You turn the phone back in since you've only paid 1/2 the cost of it and AppleCare+ and Apple essentially pays the remaining 12 payments off and take the phone back leaving you free and clear to jump into another upgrade option. Now if the phone is damaged in any way except blemishes, you also have to pay the accidental damage fee when you turn that phone in unless you file a claim and get it fixed first then turn it in, but it still is the same price. What I find cool about the program is that the phone is unlocked, you have to activate it before leaving with it but it's still free to use from carrier to carrier but with the iPhone 7 is that really a big benefit...Since the AT&T/T-Mobile models this time are GSM only but the Verizon/Sprint models are both CDMA/GSM these would have the best benefits.

I didn't get approved for it last year, the requirements I guess Citizens One is looking for is tough, I ended up having to fall back on AT&T Next installments after I got the decline in store, at least they don't just send you away lol

Re: iPhone 7 Upgrade Program - credit check

Anonymous — Sat, 10 Sep 2016 18:30:52 GMT

@Anonymous wrote:
@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
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.

Thanks for the info !! I decided to go through AT&T. Made more sense for me, I couldn't justify a HP just to finance a phone that I could easily pay for if I wanted to. Got the 7 plus 256 GB in jet black =)

Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?)

kromix — Fri, 16 Sep 2016 17:04:12 GMT

So Last Year Apple announced an 'upgrade program' which is basically a 0% interest loan for 24-months, of which you can turn in your iphone after 12 payments and get the new one. They use Citizens One Bank for the loan/financing.

The Program itself is great becuase it includes apple care puts you in line for the latest gadget yearly etc, but now i'm debating if I just buy it cash yearly instead of doing this program because

1) It's a hard pull every 12 months from Citizens One (not a huge deal)

2) It's a new installment loan every 12 months from Citizens One (this is what I'm concerned with)

Isn't the new loan being opened and the old loan being closed every 12 months a horrible proposition for AAoA, and other things? Or is it ok to have a new installment loan every 12 months and a previous installment loan closed?

Re: Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?)

Credit_hawk — Fri, 16 Sep 2016 17:42:48 GMT

This is what makes me grateful I signed a loyalty contract plan with Verizon's retention department a few years ago so I get a new iPhone every 2 years for only $200. All the other carriers have done away with traditional contract plans for new customers including Verizon I believe. However, besides the apple care plan which itself is debatable in its usefulness since in my experience a good persuasive argument will get your phone fixed for free if you're a loyal apple customer (I got both my 5 & 6 replaced out of warranty for free), I believe Verizon also offers 0% APR monthly installments for new phones. However, I don't know the specifics of it since I don't have that type of plan.

Re: Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?)

Discover2016 — Fri, 16 Sep 2016 18:23:41 GMT

If I remember correctly, they don't report the actual loan, just a hard pull.

Re: Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?)

CMoore515 — Fri, 16 Sep 2016 19:06:16 GMT

Keep in mind that if you buy the phone retail outside of the iPhone Upgrade Plan, it does not come with AppleCare +, which would be an additional $129 on top of the retail cost of the phone.

Re: Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?)

austinguy907 — Fri, 16 Sep 2016 19:37:31 GMT

Or you could just buy something other than an Apple product. Just because everyone else has one doesn't mean you have to follow the herd.

Re: Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?)

kromix — Fri, 16 Sep 2016 19:41:09 GMT

LOL! **bleep** does that have to do with anything? It's not the only way to buy it, I can afford it cash, but it's an option, you provide nothing to this thread android fanboi.

Re: Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?)

Anonymous — Fri, 16 Sep 2016 20:06:52 GMT

@kromix wrote:
So Last Year Apple announced an 'upgrade program' which is basically a 0% interest loan for 24-months, of which you can turn in your iphone after 12 payments and get the new one. They use Citizens One Bank for the loan/financing.

The Program itself is great becuase it includes apple care puts you in line for the latest gadget yearly etc, but now i'm debating if I just buy it cash yearly instead of doing this program because

1) It's a hard pull every 12 months from Citizens One (not a huge deal)
2) It's a new installment loan every 12 months from Citizens One (this is what I'm concerned with)

Isn't the new loan being opened and the old loan being closed every 12 months a horrible proposition for AAoA, and other things? Or is it ok to have a new installment loan every 12 months and a previous installment loan closed?

1. It is a annual hard pull unless they revamp it next year...last year and so far for qualified upgrade eligible users it's a hard pull still.

2. It doesn't report so no affect of your AAoA...Just the stink of an annual HP showing up but by the time the next one hit you would've have lost the ding each time since my understanding is a HP only affects for 12 months. Unless Citizens One changes the reporting you're good.

I commented on another thread...It really is a good option if you tend to upgrade every new release and get AppleCare+, since you're effectively only paying 1/2 the cost for both then upgrade. The T&C says when you upgrade Apple immediately pays off the remaining 12 payments. The only thing that I find I don't like is because of that you have no trade in value.

Personally I've alternated how I upgrade each year. I took AT&T Next the year before and then traded that one in for trade in credit at Apple last year, did Next again and the phone is already paid off since I had the trade In credit to lower the amount due overall under Next. I always took Next 12...Now they call it Next 30 and Next every year. That way I only had to make 12 payments to trigger the turn in clause or PIF the rest to AT&T then trade it in to Apple without worrying about still paying AT&T for remaining installments. It balanced out and the credit has been more than what I owed going for the Plus models.

Re: Apple Upgrade Program: New Installment Loan and Hard Pull Every 12 Months (BAD!?)

Anonymous — Wed, 21 Sep 2016 22:03:50 GMT

Just thought I'd chime in since I did the Apple Upgrade plan last year with the 6S and then renewed it again this year and for the 7....

I was somewhat annoyed at the thought of doing an HP every year, but I went ahead with it anyway. However, it turns out that they did not do another HP to Equifax this year when I renewed. I was pleasently surprised that I have not had any inquiries after being approved for renewal in the store. The whole process was reltively easy (except having to remember a PIN for my Verizon account instead of the usual password).

Also, the program in general is a very good deal if you want to get a new phone every year. If I were to buy it outright and sell my 6S to recoup costs, I would not get as much as Apple gives you in paying off the rest of the loan ($489 for my 128GB 6S). For comparison, the best I was looking at selling it for was ~$350.

So in conclusion, it looks like you only have to endure a single HP when enrolling in the Upgrade plan.

Another point is that when enrolling you have to pay first months payment and all tax up front, but when renewing they bill that in the first installment, so the first payment will be larger than the subsequent onces.

(also this is my first post to the myfico forums