Apple Card Review

The Apple Credit Card can be worth it if you’re an Apple devotee who regularly buys products directly from Apple or retailers included on the card’s list of select merchants. These purchases earn a higher amount of Daily Cash back.

Frequent users of Apple Pay benefit from the 2% Daily Cash every time you use Apple Card with Apple Pay, 3% Daily Cash on all purchases made directly with Apple and select merchants and 1% on other purchases made with your physical Apple Card .

But is the Apple Credit Card worth it if you buy a new iPhone twice a decade and prefer to use a different credit card? Probably not. You could get it just to use for Apple Pay purchases or to have access to the card’s exclusive high-yield savings account. However, while the card doesn’t charge an annual fee, opening the account will generate a hard inquiry on your credit report, which could lower your credit score. It could also potentially hurt your chances of qualifying for better cards with certain issuers, like Chase, who frown on applicants with too many recently opened accounts. You’ll have to decide if these features alone are worth the hit.

And folks who aren’t Apple users will likely find that the Apple Credit Card isn’t worth the trouble of getting since it requires having an Apple ID and using an Apple product to get the most savings.

• Quick application and decision

  When you apply for the Apple Credit Card from your iPhone your information is already filled in for you, so it takes less than two minutes to get through the screens before your information is submitted to Goldman Sachs, the card issuer. Of course, you should take time to read the disclosures so you fully understand what you’re signing up for.

  If you’re approved, you’ll see the offer that’s available which includes the credit limit, the APR and fees (which read “none”). You’ll also get a link to the offer terms and conditions, a button to accept the offer and a smaller link to decline the offer.

  Note that a hard pull of your credit report is only done if you’re approved for the Apple Credit Card and accept it.

• Unlimited daily cash back

  With the Apple Card you earn 2% Daily Cash every time you use Apple Card with Apple Pay, 3% Daily Cash on all purchases made directly with Apple and select merchants and 1% on other purchases made with your physical Apple Card .

  Merchant offers may change at any time, but currently include Nike, Panera Bread, Walgreens, T-Mobile, Exxon Mobile and Ace Hardware. You can find the most up-to-date offers on the Apple website.

  There’s no limit to the amount of Daily Cash that you can earn, and it’s credited to your account as soon as the transaction is posted. There’s generally a day or two delay between making a purchase and the transaction posting to your account. However, you’ll receive your cash back soon after that, to apply as a statement credit or put in your savings account to earn interest.

• Financing offers on Apple products

  When you use your Apple Credit Card to buy a new iPhone, iPad, Mac, Apple Watch or other Apple product, you can receive special interest-free financing through Apple Card Monthly Installments. To save even more, you can trade in an eligible device. And of course, you’ll earn 3% Daily Cash back on your purchase.

• Nearly fee-free

  There are no fees with the Apple Credit Card — no annual fees, foreign transaction fees, or late fees — which means more cash in your pocket. You also don’t have to worry about incurring costly fees in case you forget to pay your bill on time or go over your credit limit. And you can use the card when traveling outside of the United States or making purchases from foreign sites without accumulating a 3% fee for each of your charges.

  Note that although there aren’t fees for late or missed payments, you’ll still have to pay the interest on your balance.

• Advanced security features

  Once you’re approved for an Apple Credit Card, Apple won’t automatically send you a physical card. You’ll receive a digital card inside your Apple Wallet, protected by advanced security features like Face ID, Touch ID and unique transaction codes, so you’re the only one who can use the card.

  If you request a physical card to use where Apple Pay isn’t available, you’ll notice there are no numbers on the card — front or back. This means that your number can’t be copied down by an unscrupulous server or cashier.

  A few taps on your device or a call to customer support should be able to stop unauthorized charges if your card falls in the wrong hands. Apple also says that your data isn’t sold to third parties for marketing or advertising.

• Share card with members of your Apple Family Sharing group

  A neat feature of the Apple Credit Card is that you can share its cash back and credit-building benefits with your entire Apple Family. You can add up to five family members (age 13 and older) to your account and manage their purchases across several devices. Everyone gets access to their 3% Daily Cash back on their own purchases. Participants who are 18 and older can build credit because card usage and payment history are reported to the credit bureaus as an authorized user.

  You can also add co-owners to your account or form a single co-owned account with a partner who already owns an Apple Credit Card. Apple Credit Card co-owners can set spending limits for participants and get real-time notifications on card purchases. This allows you to manage the account and build credit equally, and could be helpful in case one person can’t qualify for an Apple Credit Card or has a low credit line due to limited or poor credit. With responsible use over time, your partner could improve their credit score. Likewise, poor credit card management will reflect negatively on both credit reports.

• Access to Apple’s high-yield savings account

  In April 2023 Apple announced its high-yield savings account with its financial partner, Goldman Sachs. It currently offers an attractive APR on your savings, and there’s no minimum balance or minimum deposit to add funds. But it’s only available to Apple Credit Card holders.

  You can deposit your Daily Cash and watch it grow or transfer funds from other banks to capitalize on the higher interest rate.

• Must use Apple ID to apply

  In order to apply for the Apple Credit Card, you must have (or create) an Apple ID. Applying on your iPhone or mobile device is likely the most convenient way, but you can apply via your computer.

  Those who aren’t already in the Apple ecosystem by choice aren’t necessarily missing out on much since the highest level of Daily Cash is given on purchases made via your Apple Wallet on your mobile device. Plenty of cash back credit cards offer the same, or better, levels of rewards without having to jump through additional requirements to obtain the card.

• Not all businesses accept Apple Pay

  More than 85% of businesses accept Apple Pay, but chances are there are a few places you shop that don’t accept it. You can request your own physical Apple Card (which is a Mastercard) and use it to make purchases at these places, but you’ll only earn 1% cash back on these purchases.

• No sign-up bonus

  There’s no sign-up bonus with the Apple Credit Card which means no extra points or cash back rewards for meeting an initial spending requirement. The lack of an intro APR makes it a poor choice for financing a large purchase outside of the Apple brand.

• Physical card is sent by request only

  If you prefer a physical card, this isn’t the card for you, since most of the benefits come from using it with Apple pay. You can request a sleek and shiny physical card, made of titanium, for those instances when Apple Pay isn’t available. However, since you’re going to only earn 1% cash back on those purchases, it doesn’t make sense to use the physical Apple Credit Card. You’ll find many cards that offer a much better cash back rate on all purchases, like the Capital One QuicksilverOne Cash Rewards Credit Card which earns an unlimited 1.5% cash back on all purchases.

Apple Card vs. Blue Cash Everyday Card from American Express

The Blue Cash Everyday^® Card from American Express is a $0-annual-fee card that offers elevated cash back on a greater range of products and services. It’s a great alternative if you don’t use Apple products and have no desire to get started. You’ll get a regular credit card that you can use everywhere American Express is accepted.

The card gives you 3% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases, then 1%. 3% Cash Back on U.S. online retail purchases, on up to $6,000 per year, then 1%. 3% Cash Back at U.S. gas stations, on up to $6,000 per year in purchases, then 1%. 1% cash back on other purchases. Terms apply. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.

Although there are caps on the elevated cash back earnings, this amounts to spending $500 per month in each of the categories. According to a LendingTree study, the average family spends just over $400 on groceries and restaurants each week which suggests it’s possible to max out the rewards potential for most cardholders.

Additional perks include an intro APR of 0% on purchases for 15 months and 0% on balance transfers for 15 months (then a 18.74%-29.74% Variable APR applies). You’ll also earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months. 

Since there is a foreign transaction fee of 2.7% of each transaction after conversion to US dollars., you’ll want to leave it home when going outside of the United States.

 

Apple Card card vs. Capital One Quicksilver Cash Rewards

The Capital One Quicksilver Cash Rewards Credit Card is a good stand alone card with a $0 annual fee (see rates & fees) for people who like simplicity, since it offers the same rewards on every purchase. You’ll earn unlimited 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). Also, you’ll get a physical card that you can use virtually anywhere — no iPhone needed. There’s also a sign-up bonus: earn a earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.

Also, it includes an intro offer to help you finance a purchase or pay off high interest debt. You’ll get an APR of 0% intro on purchases for 15 months and 0% intro on balance transfers for 15 months (Balance transfer fee applies), then 19.74% - 29.74% (Variable) (see rates & fees). While the Apple Credit Card does allow interest-free financing, it’s limited to eligible Apple purchases only. With the Capital One Quicksilver Cash Rewards Credit Card you can use it on anything you can buy with a credit card.

If you’re seriously considering the Apple Credit Card, you might even consider pairing it with the Capital One Quicksilver Cash Rewards Credit Card. You can get a slightly higher rewards rate on purchases outside the Apple Credit Card‘s bonus categories.

The Apple Credit Card is a good card for those who are highly integrated into the Apple ecosystem — you’ll earn a high rate of cash back on your tech purchases, which is a rare category for cash back cards. You’ll also get the convenience of paying with your phone through Apple Pay, which most businesses accept, and earning bonus cash back on your purchases. Plus, being able to see all of your data with a few taps of your screen is a nice feature.

However, for other spending, you’re better off with a flat-rate cash back on every purchase like the Capital One Quicksilver Cash Rewards Credit Card. In addition to a sign-up bonus you’ll get intro APR offers which apply to far more purchases than the Apple Credit Card’s offer gives you (see rates & fees).

And if you use your iPhone and Apple Pay with another credit card, or aren’t going to give up your Android, don’t worry. There are plenty of cards like the Blue Cash Everyday^® Card from American Express that give you the opportunity to earn on all purchases, no Apple Pay needed.