Answer to all your iPhone Upgrade Program questions

[andjew94]

After chatting with Apple support tonight I was directed to the terms and conditions for the program, that answered 99% of my questions that I struggled to find answers for on the forum.

• SOFT credit check, no hard pull.
• ONLY credit cards are acceptable. Corporate cards aren't eligible either.
• At the reservation appointment taxes for both AppleCare+ & the iPhone itself are due.
• The first payment is also due at the time of pickup.
• After 6 months you can make advance payments to upgrade anytime, as long as you have satisfied the first 12 payments. This could be helpful for making sure your phone is paid off in time for the iPhone 7 (or whatever comes next) and not having an outstanding payment come next September. You can also completely pay the phone off after 6 months by the looks of things, thus ending the LEASE and making the phone yours to do with as you please. Paying the phone off in full and keeping it defeats the purpose of saving money and upgrading hassle free, but thats just my opinion.

Another big point is about discounts with carriers. If you opt to do a 2 year contract with your carrier such as AT&T you will be charged the full $40 fee each month for your smartphone. If you bring your own phone (the whole idea behind this plan) you'll only owe $15 a month (on AT&T), a savings of $25.

Hopefully I helped clear a little confusion for people looking for unanswered questions. As a side note for anyone doing this I'd recommend at least $200 of available credit on the card you choose to bring in to the reservation, the more the better.

http://www.apple.com/legal/sales-support/iphoneupgrade_us/

 

[Splazzatch]

http://www.apple.com/legal/sales-support/iphoneupgrade_us/

thank you for this! It answered all the questions I had and gave me a heads up on the taxes and fees being due at time of pick-up. I should have thought about that but didn't.

 

[Knowlege Bomb]

So you get to use whatever card you want to finance the phone? Like I could use my debit card?

 

[Lobwedgephil]

Umm, 40-15 is not 35.

 

[Knowimagination]

Yeah if that is the case I wish I had known before preorder as I would have done that instead of NEXT. Oh well maybe next year.

 

[lsutigerfan1976]

So after reading the details. It's not that great. It says you need a credit card. They will charge your card each month. They will not charge you interest. But your card holder may charge interest. So basically it's the same thing I did. Which is sell my old phone. Charge my new phone to a cc. And now pay off that card. And in one year I sell this new phone and do it all over again.

 

[sniffies]

Q1

Does the upgrade program apply only to those who have postpaid accounts? Or can T-mobile prepaid users join too?

Thanks.

 

[sniffies]

Q2

Can those who have already paid for their phones in full for 9/25 delivery go into a store and switch to the upgrade program?

Thanks.

 

[appygirl82]

So after reading the details. It's not that great. It says you need a credit card. They will charge your card each month. They will not charge you interest. But your card holder may charge interest. So basically it's the same thing I did. Which is sell my old phone. Charge my new phone to a cc. And now pay off that card. And in one year I sell this new phone and do it all over again.

I don't believe they are charging your phone(s) to the CC you provide. That would make no sense. Then the person would be paying the CC interest of avg 12-20% or more. That would make it a horrible deal and basically the customer could just charge the phone to the CC, what would be the incentive?!

It's a loan through Citizens Bank, they already basically do this same thing (loan) for students etc for tablets and computers.

 

[KRG]

I don't believe they are charging your phone(s) to the CC you provide. That would make no sense. Then the person would be paying the CC interest of avg 12-20% or more. That would make it a horrible deal and basically the customer could just charge the phone to the CC, what would be the incentive?!

It's a loan through Citizens Bank, they already basically do this same thing (loan) for students etc for tablets and computers.

It's a loan you're paying off via monthly credit card installments. How else are you going to do it...send them a monthly check? If you can't afford to pay off your balance monthly to avoid CC interest, you shouldn't be buying a $650-950 smartphone.

Surely everyone knows that if you pay your balance every month on time you don't pay interest on a CC, right?

The incentive is you get to trade it in after 12 months, hassle-free, and only pay for 12 months of applecare+ rather than the full $129 you'd pay every single year if you bought in full.

 

[appygirl82]

It's a loan you're paying off via monthly credit card installments. How else are you going to do it...send them a monthly check? If you can't afford to pay off your balance monthly to avoid CC interest, you shouldn't be buying a $650-950 smartphone.

What I am saying is it is financed through Citizens Bank and at 0% interest. Not charged to a persons CC they provide. Someone asked that above. I imagine some people will buy outright (or however) using a CC. But that's not what the Apple Upgrade Program is. I can afford the phone just fine, thank you!

 

[KRG]

What I am saying is it is financed through Citizens Bank and at 0% interest. Not charged to a persons CC they provide. Someone asked that above. I imagine some people will buy outright (or however) using a CC. But that's not what the Apple Upgrade Program is. I can afford the phone just fine, thank you!

I know..I meant you still need to pay an interest free monthly payment toward the citizens loan...which will be charged monthly to a CC of your choosing. I didn't mean to make my comment appear directed at you...just meant everyone complaining that'll they'll pay CC interest.

 

[KRG]

Sorry for the miscommunication!

 

[appygirl82]

Sorry for the miscommunication!

It's all good

 

[rui no onna]

I don't believe they are charging your phone(s) to the CC you provide. That would make no sense. Then the person would be paying the CC interest of avg 12-20% or more. That would make it a horrible deal and basically the customer could just charge the phone to the CC, what would be the incentive?!

I use credit cards and I pay 0% interest. It's only a bad deal if you carry a balance on your CC and don't pay in full every month.

 

[appygirl82]

I use credit cards and I pay 0% interest. It's only a bad deal if you carry a balance on your CC and don't pay in full every month.

Yes this is true! Not sure the details of how this all works with the CC they want people to have but yes, if the monthly balance were paid each month that should result in no interest

 

[McDaddio]

Thanks

But what is a soft credit check? I have credit checking blocked at the 3 credit check agencies to limit fraud. Do I have to unblock or is that a soft check?

 

[lsutigerfan1976]

I don't believe they are charging your phone(s) to the CC you provide. That would make no sense. Then the person would be paying the CC interest of avg 12-20% or more. That would make it a horrible deal and basically the customer could just charge the phone to the CC, what would be the incentive?!

It's a loan through Citizens Bank, they already basically do this same thing (loan) for students etc for tablets and computers.

They will charge you the $30 to $40 or so to lease the phone through them. They don't charge you interest for doing this "loan" every month. But since they force you to use a credit card. The card holder you have may charge you interest. It even says it in the fine print. See below.

Installment Loan. You will be required to apply for and enter into a 24-month 0% APR installment loan (“Installment Loan”) for the full retail price of the eligible iPhone (“Financed iPhone”), AppleCare+ for iPhone (“AppleCare+”), and applicable taxes and fees. You will enter into the Installment Loan with Apple’s bank partner, Citizens Bank, N.A., doing business as Citizens One (“Bank”). Additional terms and conditions required by the Bank apply.

• Credit Card. To enroll in the iPhone Upgrade Program you will need a valid and eligible U.S.-issued personal credit card as designated for inclusion in the iPhone Upgrade Program. Debit, corporate, and prepaid cards are not accepted.
• First Installment Payment. Your first installment payment under your Installment Loan will be authorized on your credit card at the time of purchase, pick-up, or shipment and will be processed within three days.
• Taxes and Fees. All applicable taxes and fees due on the purchase of the Financed iPhone and AppleCare+ are included in your first installment payment.
• Subsequent Installment Payments. After the first installment payment, your credit card will be automatically charged on a monthly basis by the Bank under the terms of the Installment Loan.
• Credit Card Interest and other fees. You will be charged 0% APR on the Installment Loan. However, the issuer of your credit card may charge you interest or other fees under the terms and conditions of your credit card. This may include any applicable interest on unpaid balances or late payments

 

[Joe1602]

Surely everyone knows that if you pay your balance every month on time you don't pay interest on a CC, right?

The incentive is you get to trade it in after 12 months, hassle-free, and only pay for 12 months of applecare+ rather than the full $129 you'd pay every single year if you bought in full.

Surely everyone knows that you are still paying for the full price of AppleCare+ even if you trade the phone in every 12 months, right?

 

[rui no onna]

Surely everyone knows that you are still paying for the full price of AppleCare+ even if you trade the phone in every 12 months, right?

Technically, you only pay for half a year. The monthly payments are pretty much (phone MSRP + AppleCare+)/24. The only thing you pay in full are taxes.

 

[appygirl82]

They will charge you the $30 to $40 or so to lease the phone through them. They don't charge you interest for doing this "loan" every month. But since they force you to use a credit card. The card holder you have may charge you interest. It even says it in the fine print. See below.

Installment Loan. You will be required to apply for and enter into a 24-month 0% APR installment loan (“Installment Loan”) for the full retail price of the eligible iPhone (“Financed iPhone”), AppleCare+ for iPhone (“AppleCare+”), and applicable taxes and fees. You will enter into the Installment Loan with Apple’s bank partner, Citizens Bank, N.A., doing business as Citizens One (“Bank”). Additional terms and conditions required by the Bank apply.

• Credit Card. To enroll in the iPhone Upgrade Program you will need a valid and eligible U.S.-issued personal credit card as designated for inclusion in the iPhone Upgrade Program. Debit, corporate, and prepaid cards are not accepted.
• First Installment Payment. Your first installment payment under your Installment Loan will be authorized on your credit card at the time of purchase, pick-up, or shipment and will be processed within three days.
• Taxes and Fees. All applicable taxes and fees due on the purchase of the Financed iPhone and AppleCare+ are included in your first installment payment.
• Subsequent Installment Payments. After the first installment payment, your credit card will be automatically charged on a monthly basis by the Bank under the terms of the Installment Loan.
• Credit Card Interest and other fees. You will be charged 0% APR on the Installment Loan. However, the issuer of your credit card may charge you interest or other fees under the terms and conditions of your credit card. This may include any applicable interest on unpaid balances or late payments

Yes so sounds like each month they will post your monthly payment to your CC. With a typical CC as long as you pay that payment you would not incur interest. Typically with a new purchase (or something charged against your card) there is a grace period before interest is charged on that new balance amount

 

[KRG]

Surely everyone knows that you are still paying for the full price of AppleCare+ even if you trade the phone in every 12 months, right?

Yes. You're still paying the same for applecare+ annually, I know. But if you bought a new phone outright every year with applecare+ you'd pay $129 every single year. With this program you are paying half. When you trade in, you're not making the remaining 12 payments.

That's why this is only beneficial if you trade your phone annually.

 

[lsutigerfan1976]

Yes so sounds like each month they will post your monthly payment to your CC. With a typical CC as long as you pay that payment you would not incur interest. Typically with a new purchase (or something charged against your card) there is a grace period before interest is charged on that new balance amount

Yes you understand lol. I actually have been doing this similar thing for a while. Buy phone, sell phone next year. Use funds towards new phone. Pay any extra balance on my cc. Usually charge it on a card with little to no interest plus rewards. And pay it off ahead of time. Then the following September rinse and repeat again.

 

[jeffjak25]

The question that I still have is if you have to have an active upgrade available on your account. I ordered two 6s+ from AT&T with Next. I would much rather do the iPhone upgrade program. Do I have to cancel my two AT&T phones to restore my upgrade before I can purchase the phone from Apple?

 

[andjew94]

My mistake on the $35 issue, it was late haha.

It makes the most sense to charge a card instead of Citizens/Apple sending you a bill each month. To go along with that if your credit card is 20% interest or higher: you need a new credit card.