Apple Card Special Financing

[QuakerOatmeal]

I have been considering buying a new Macbook. I have an Apple Card with a semi healthy credit line, so making a macbook purchase will not hurt my utilization.

The Apple Card offers special 12 month 0% APR installments. I was thinking of using this offer, but paying it off sooner than 12 months.

My question:

Is this considered an actual "installment loan"? Will I be penalized for paying it off early?

Thank you so much for your input.

[FeeBear]

Hey Quaker,

      From what I have read. the answer is no. You will not suffer any negative affects from paying it off early.

Fee

[blindambition]

When you finance, you can pay off early, you have 12 months to pay off without interest.

You'll be charged full amount. Then your minimum payment for other charges and minimum for promo is what you'd pay each month.

Pay full amount on other charges to avoid interest. Minimum or more on promo to pay off within 12 months, and avoid interest.

[coldfusion]

It won't be treated as an installment loan.

You won't be penalized if you pay it off early.

For best long term results and keeping Goldman Sachs' collective mind at ease pay at least 1/12 of the original balance every month, not make mininum payments followed by a balloon payment.

[RSX]

Here is an interesting note about the financing 

I just received a new iMac that I used the 12 month financing option for

they are only posting the monthly payment, not the whole amount

so my CL shows the amount minus the entire cost of the Mac

but what they show as outstanding on the card is only the monthly payment amount.  Which is awesome

so likely will not get a Util ding at all throughout the 12 months

i will know more after a couple of months, but this is how it is starting.  

[Anonymous]

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@RSX wrote:

Here is an interesting note about the financing 

I just received a new iMac that I used the 12 month financing option for

they are only posting the monthly payment, not the whole amount

so my CL shows the amount minus the entire cost of the Mac

but what they show as outstanding on the card is only the monthly payment amount.  Which is awesome

so likely will not get a Util ding at all throughout the 12 months

i will know more after a couple of months, but this is how it is starting.  

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Is that how its reporting though? What the UI is showing isn't necessarily how the credit report will read. It would be pretty amazing if they aren't reporting the total to the credit bureaus.

[RSX]

In app so far, correct.   

it should have reported yesterday so I will actually know more in 2-5 days, as opposed to 2 months

i will reply here with the results.  

[Anonymous]

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@RSX wrote:

In app so far, correct.   

it should have reported yesterday so I will actually know more in 2-5 days, as opposed to 2 months

i will reply here with the results.  

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Cool, looking forward to it. I am buying a new phone this year and I'm currently debating with myself how I want to handle the payment plan, through Xfinity Mobile and get locked to them for two years or directly with Apple, so the info on how all that works helps with my decision process.

[RSX]

Will do.  I have Xfinity mobile as well, and like that it is zero interest and hidden from the CRA's

[Anonymous]

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@RSX wrote:

Will do.  I have Xfinity mobile as well, and like that it is zero interest and hidden from the CRA's

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Yeah I like that part of it but I use a secondary provider on eSIM for data because XM is too expensive and I can't do that on a locked device. My data needs aren't much though, only when the home internet is out or the power is out, so it's not a huge deciding factor. My bill is like $13.68 a month since I don't use their data and my eSIM costs $5 a gigabyte and doesn't expire until I use it all or a year goes by. 

I am hoping they offer some sort of promo on the 12 Pro Max like they had been doing where existing customers could upgrade to the 11 Pro or Pro Max and get a $400 gift card in like 3 months or some such. They still have it for the Samsung devices so here's hoping it comes back in October.