iPhone Upgrade Program financed by Citizens Bank

[Anonymous]

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 ? 

[kdm31091]

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.

[Anonymous]

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@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.

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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. 

[kdm31091]

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.

[MACFRME]

"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?

[Anonymous]

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+. 

[Simply827]

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%.

[Anonymous]

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.

[Kenny]

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

[pipeguy]

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.