Pros and Cons of Apple Cards: Are the Benefits Worth It?

Apple has a way of shaking up every market it enters. The company may be best known as the tech giant behind such favorites as the iPhone and the Apple Watch, but it's recently made a splash by jumping into the financial sphere with the introduction of the Apple Card.

This concept was preceded by Apple Pay, but the new credit card takes the concept to the next level. Issued through Goldman Sachs and available as a standalone card, this credit card can be helpful for Apple enthusiasts but may not be ideal for all users. Below, we explain when it's useful and when it should be avoided.

Pros

Applying for the Card

Credit card applications can be a hassle to complete, but this is not the case for the Apple Card. Signing up is particularly easy for aspiring cardholders already equipped with the iPhone or another Apple device; simply use the Wallet app, and you could be approved swiftly.

Monitoring Card Activity

Are you curious as to how much you've spent recently? Whenever you want insight into your financial habits, you can quickly find it with the Apple credit card. Color-coded categories make it easy to spot spending patterns. Visual representations make this information compelling and can be incredibly helpful for budgeting purposes.

Cash Back Rewards

Many people select credit cards primarily based on the cashback rewards they offer. These have the potential to be significant with Apple's Daily Cash, although a lot depends on the type of spending.

The rewards program is most favorable for Apple purchases, which provide 3% back. The 3% rate is also available for select partners, such as Panera, Walgreens, Uber Eats, and Nike. A more modest 2% back is possible when using the iPhone to make Apple card payments. Other types of purchases earn a 1% rewards rate.

No Annual Fee

Many credit cards maintain significant annual fees, but this is not the case for the Apple card. This lack of extra fees helps to make up for the accompanying lack of perks. Some advocates claim that, without annual fees, the average user might actually come out ahead, as compared to using typical credit cards. Late fees are also a thing of the past.

Credit Card Security

Security is a huge concern for today's credit card users, and for good reason: breaches are far too common. Consumers want to know that their information is safe every time they make purchases. Apple provides extra peace of mind, as the company boasts an excellent reputation as the tech giant most invested in user security.

Perhaps the most noteworthy security feature? The use of separate card numbers associated with various payment methods. This attention to detail means that, in the event the credit card is compromised, it's easy to report the problem and arrive at a quick solution.

Physical Apple Card

While many people prefer to make payments with their phones, a physical version of the Apple Card is also available. This is a great option when users don't want to be tied to their devices.

This physical solution also makes the card far more versatile than many people realize. The card itself is as attractive as any Apple product, featuring a polished look that easily fits in with the company's iconic aesthetic.

Cons

Availability to Foreigners

Currently, the Apple Card is only available to United States residents. This means that a lot of interested consumers are locked out of using it for the time being.

Tied to the iPhone

There's a lot to love about the Apple card for iPhone enthusiasts, but what about people who primarily rely on Android devices? These users may be out of luck, as virtually every aspect of this credit card is tied into the Apple ecosystem.

This is to be expected given Apple's reputation, but that doesn't make it any less disappointing for Android users who would like to try a different type of credit card.

Low 1% Cash Back

While the Apple Card's cash back features might seem like a benefit to some, they look less advantageous upon closer inspection. Unfortunately, this card only delivers a 1% cash back rate for purchases that are not from approved retailers. This falls far short of the cash back credit card opportunities provided by several competitors.

Lack of Perks

Consumers who are willing to deal with less-than-impressive cash back deals may be forgiving if their cards are accompanied by other helpful perks. Common examples among top rewards credit cards include travel miles, low introductory APR rates, or even gift cards. Compared to many competing credit cards, however, perks are few and far between for the Apple Card.

Common FAQs

While the pros and cons outlined above should provide excellent insight into how the Apple Card might fit into your lifestyle, you may still have questions about whether you're eligible and how you can make the most of this card. We provide much-needed answers below:

What credit score do you need to get an Apple Card?

A variety of factors play into eligibility for the Apple Card. While there is no set score at which an application will automatically be denied, Apple highlights below 600 as the point at which acceptance might be difficult to obtain. Typically, however, this number is accompanied by outside concerns that are likely to lead to denial. These might include tax liens, bankruptcy, or a general lack of disposable income.

Are Apple Cards capable of building credit?

Like any credit card, the Apple Card makes it possible to improve credit when used responsibly over an extended period of time. Some advocates argue that it's actually easier to improve credit with Apple due to the functionality of the app, which does a better job of tracking and reporting on spending habits.

Is an Apple Card a good choice?

There is no simple answer to this question. The Apple Card can be worth it, but a lot depends on what you hope to accomplish with it. If you love all things iOS and are willing to forgo certain perks in favor of convenience, this card could be a great fit for your lifestyle.

Final Thoughts

The Apple Card certainly isn't right for everyone, but it offers several compelling benefits that could make it a great option for anyone who is already tied into the Apple ecosystem.