Apple financing (Barcley Card)

[Anonymous]

Hi,

I stumbled across this forum when reading an old thread I found through google. Maybe you can help me with some of my questions/uncertainties.

First of all, I'm international and don't have much experience with/knowledge about the whole credit history thing. I'm still learning and trying to understand, so please bear with me.

I'm considering getting a new Macbook  (which I need for work and school) and actually finance it. However, I'm not sure if I will get approved. I just started building a credit history last November, when I got a secured ($500) credit card. I have a (small) car loan since Januaray (back then, my credit history came back empty). I've always paid on time and full balances (CC). According to CreditKarma, my score is 'fair' (>650). I have, however, a relatively small income (part-time graduate assistant).

What is your opinion, do I even have a chance?

Also, if I got approved, how does it actually work? I understand that I get a credit card, not an actual loan/financing, is that correct? But how does it work with monthly payments, then? I'm a little confused in this regard.

Thank you very much in advance

[Appleman]

Ankaa,

Welcome to myFICO. You are describing the Apple Credit Card backed by Barclays.  This works like any other credit card. You make a purchase and then if you do not pay in full they begin to charge you interest.

With this card they do have 0% financing offers where they will not charge you interest on certain Apple purchases for a set period of time say 12 or 18 months. The trouble with these offers is if you do not pay off the entire balance before the end of the promotion (12 or 18 months) they charge you interest from day 1 and the interest rate is often quite high.

The small income may make it difficult to get a large enough credit line. Each bank has their own minimum income requirements.

You may want to google:

Nerdwallet's Best College Student Credit Cards of 2016

and see if there is any worthwhile advice about student credit.

Good luck and I hope others come along to offer their suggestions.

[RonM21]

---

@Appleman wrote:

Ankaa,

Welcome to myFICO. You are describing the Apple Credit Card backed by Barclays.  This works like any other credit card. You make a purchase and then if you do not pay in full they begin to charge you interest.

With this card they do have 0% financing offers where they will not charge you interest on certain Apple purchases for a set period of time say 12 or 18 months. The trouble with these offers is if you do not pay off the entire balance before the end of the promotion (12 or 18 months) they charge you interest from day 1 and the interest rate is often quite high.

The small income may make it difficult to get a large enough credit line. Each bank has their own minimum income requirements.

You may want to google:

Nerdwallet's Best College Student Credit Cards of 2016

and see if there is any worthwhile advice about student credit.

Good luck and I hope others come along to offer their suggestions.

---

+1

[Anonymous]

Thank you for your replies

Do you happen to know the minimum income for Barcley?

Also (since credit cards in the US work differently from the ones in my home country - we HAVE to pay the full balance each month), so I could make the purchase of say $1000 and because it's interest free stretch the complete payment over the 0% period. Would I still have minimum payments as I have with my 'normal' CC or could I pay however much whenever I want within those 12 or 18 months?

How will this influence my score, if I was approved? Also, should I even try to apply online (and possibly get denied) or should I try that backdoor number from the beginning? I assume getting denied will lower my score?

[Appleman]

I do not know the minimum income required for Barclays. Sorry. 

So your countries credit system sounds like the American Express Charge card. You charge things and pay in full (PIF) each month.

There are also revolving cards (most US cards) where you can carry a balance and if you do there is usually an interest charge.

With the 0% promotions you will have a minimum payment of say $35 for a $1000 balance. However, you can pay more and as much as you like. The important thing is to pay off the entire balance prior to the expiration of the promotional balance or you have to pay all the interest accrued from day 1.

Let's say you have 0% for a year provided you have the balance paid off in 12 months with a standard APR of 23%. Even if you have paid $999 over the 12 months and still owe $1 at a year + 1 day you will now also owe over an additional $230 in interest.

When you apply for credit the bank does a Hard Pull (HP). This is noted on your credit report and indicates you have applied for a credit product. One HP by itself is not a problem. However, up to a certain point every time you get a HP your credit score will decrease (not 100% true but pretty close)

To answer your question, applying and being denied will have only a small effect on your credit. Applying 20X and being denied will be very negative.

You could call the toll free number and see what the minimum requirements are for income to qualify for the card.

Good luck!

[Anonymous]

Thank you very much for the explanations, that helped a lot.

Concerning the whole hard pull and possible impact on my score thing, one more thing. I'm considering to apply for refinancing of my car loan in the next couple or few months, as I have an awful APR of 24%. It's not a HUGE amount (~ $3k before interest), but it still is a money I owe...

Considering this (i.e. getting a new loan) as well as possibly applying for that Barcley deal and my relativly short credit history, I was wondering if one of the two might influence the other and possibly lead to a denial? Would it be too many loans/CCs in a too short time period? How long should I wait? My income won't change anytime soon.

Also, as of now my husband doesn't have a SSN, but plans on getting one within the next couple months. Naturally, he has zero credit history. Will this have any impact on my aforementioned credit plans? I'm not sure how us being married will play into any of this. Will anybody care?

[python0704]

You can also check out Macmall and they may have a nice discount for the macbook pro you want and they also have a no interest finance option which is 6 months. Keep in mind that they don't accept returns on Apple products if you just wanna try and return.

[Anonymous]

Macmall is more expensive than Apple with edu discount Plus: free headphones

[python0704]

It was cheaper when they don't charge tax. (NJ) Another no tax store is small dogs. Headphone may not suit everyone, though.

[Anonymous]

Well, when I checked it was still cheaper to go through Apple with edu-pricing even after tax than Macmall Also, I do prefer do buy from Apple directly over some small online computer I've never heard of. Support, warranty and such

Anyways, that wasn't really my question. I do appreciate your input and suggestions. But I would appreciate any thoughts regarding my concerns of applying for the Barcley Card while planning on refinance my car...