Apple and Goldman Sachs Let Apple Card Holders Defer April Payments

[acgmph]

It’s good to know the option is there, but because my income is so far not affected, I keep paying everything in full.

Careful with that ballooning debt, though, as it will start accruing interest the day they say this is no longer the case, so people will have to pay back March + April (+ May?) all at once to avoid interest on their future statement.

 

[PickUrPoison]

It's a Goldman Sachs card. The money is lended to you by the bank, not Apple. Your gratitude is misdirected.

No, it’s an Apple Card. The issuing bank is Goldman Sachs. Apple wanted this option for its customers, and may very well be covering the money Goldman Sachs is losing. Your ingratitude is misdirected.

 

[CalMin]

The payment amount is a very small amount with respect to the balance. The increase in balance caused by a missed payment is negligible.

Good point. I suppose I've always just been in the habit of paying off my balances in full each month and forget that not everyone does that.

 

[Teammm]

I pay off my balance once the Apple Cash generates. I like saving a few dollars every time

 

[PickUrPoison]

Good point. I suppose I've always just been in the habit of paying off my balances in full each month and forget that not everyone does that.

It’s the best way to do it. No interest, and builds great credit by demonstrating a large capacity for repayment. Cash back and other rewards and benefits are icing on the cake.

Too many people see credit as the equivalent of a bank account—money to be spent. Credit is a tool that, handled well, can benefit you greatly. You work the system, not let the system work you.

 

[bpeeps]

Not everyone is fortunate to be able to save like that. Some of us live paycheck to paycheck.

Many people live paycheck to paycheck because they live outside their means. Do they really need that dinner out, that movie ticket to Avengers 14, or a new iPhone? These are all spending avenues that could have saved a few dollars over time. At my brokest, I still prioritized saving just in case anything brown hit the fan.
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The payment amount is a very small amount with respect to the balance. The increase in balance caused by a missed payment is negligible.

This advice is... not great. You should be paying your credit card in full every month and maintaining no balance. If you cannot do this, you cannot afford a credit card. This is what people don't understand, debt is a result of living outside your means and not knowing how to manage your finances. High utilization does absolutely affect your credit score and what lenders are willing to risk giving you in the future. Banks will deny you new credit if you maintain high utilization. They want to see that debt paid down before they take you on as a risk.
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Good point. I suppose I've always just been in the habit of paying off my balances in full each month and forget that not everyone does that.

This is the correct way to pay off credit cards. Every month, accrue zero interest, utilization should be below 20%. The user you responded to is simply wrong.

 

[fbr$]

Wooow, that's great news for those who bought what they didn't need, with the money they didn't have, to impress people they don't like...😁

 

[TheShadowKnows!]

Wooow, that's great news for those who bought what they didn't need, with the money they didn't have, to impress people they don't like...😁

This is so funny, and so true.
Applies directly to most of the posters in thus forum, I suspect./s

 

[QCassidy352]

No, it's really not.

Sometimes it is and sometimes it isn’t. Not everyone can afford to save up a 2-3 month rainy day fund, but certainly more people could than choose to.

 

[falainber]

No, it’s an Apple Card. The issuing bank is Goldman Sachs. Apple wanted this option for its customers, and may very well be covering the money Goldman Sachs is losing. Your ingratitude is misdirected.

Apple is not a bank. They are not allowed to lend money. If anything, Apple is going to make money from this move because they collect fee from transactions. With delayed payments, people will continue buying thus keeping Apple fee stream alive. So, thank Goldman Sachs for this but you probably won't because that would sound somewhat ridiculous. Once you think about it, thanking Apple would be just as ridiculous.

 

[newyorksole]

It’s good to know the option is there, but because my income is so far not affected, I keep paying everything in full.

Careful with that ballooning debt, though, as it will start accruing interest the day they say this is no longer the case, so people will have to pay back March + April (+ May?) all at once to avoid interest on their future statement.

Yeah I see a lot of people saying they want to defer payments and put off payments for a month or 2, but I don’t think that’s a good thing.

I personally would much rather make the payments now and not worry about it. Even if I’m low on funds.

 

[Macaholic868]

That’s a great gesture. That really helps people who need it who might not be getting a paycheck until their tax return, stimulus payment(s), unemployment, etc. start arriving.

Nice work Apple! I have a friend who works in residential construction and was laid off. I gave him the money he needed to get him through until his first unemployment check comes through in several weeks because he’s got a wife and they live pay-check to pay-check and my wife and I don’t have kids, we have what we need in our savings account to get through a year before we’d think about borrowing from our 401K’s, IRA’s etc. My friend doesn’t have any of that. This is the kind of lifeline he may need until he gets the stimulus money and starts getting unemployment checks in 6 weeks.

Some people have no lifeline, they live paycheck to paycheck, they are recently laid off, they have a family to provide for, they rent their homes and as of very recently have no income, unemployment checks are 6 weeks away, the lifeline from the federal stimulus is weeks away and they have to pay rent, feed heir families, pay their Internet bill so their kids can get some kind of schooling, pay their cellphone bill, etc.

I’m no idiot. Apple will either lose very little and this will be for PR, come out even or even position themselves to make money down the line.

Doesn’t matter when you need a lifeline and something you can use right here and right now that you won’t have to pay back until the checks start coming in. Or would you prefer they use a dirty pay day lender and really get screwed on interest, really get in over their heads and really pay a boat load more in interest than Apple and Goldman will collect when they start collecting again.

I gave my buddy a zero percent loan. it’s actually a gift because I won’t let him pay me back. He paid that bill years ago because of our friendship and not in dollars. In helping me when I needed a friends help. He still might need things and not have enough to cover it and this may be the lifeline he needs when his pride won’t let him ask for my help again.

 

[BF1M]

I've noticed recently that when I make a payment, my available credit is updated immediately. It used to take a couple of days before the available credit was updated from a payment.

How do you make your payments? Bank draft or via Apple Cash?

 

[triangletechie]

How do you make your payments? Bank draft or via Apple Cash?

Always bank draft.

 

[BF1M]

Always bank draft.

Mine always take forever via Bank Draft. Instantaneous with Apple Cash. I actually asked and they said basically there is no rhyme or reason on why.

 

[PickUrPoison]

Many people live paycheck to paycheck because they live outside their means. Do they really need that dinner out, that movie ticket to Avengers 14, or a new iPhone? These are all spending avenues that could have saved a few dollars over time. At my brokest, I still prioritized saving just in case anything brown hit the fan.
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This advice is... not great. You should be paying your credit card in full every month and maintaining no balance. If you cannot do this, you cannot afford a credit card. This is what people don't understand, debt is a result of living outside your means and not knowing how to manage your finances. High utilization does absolutely affect your credit score and what lenders are willing to risk giving you in the future. Banks will deny you new credit if you maintain high utilization. They want to see that debt paid down before they take you on as a risk.
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This is the correct way to pay off credit cards. Every month, accrue zero interest, utilization should be below 20%. The user you responded to is simply wrong.

It seems like you didn’t read my post, since your condescending reply is in no way responsive. Rather it appears that you just want to get up on your sanctimonious soapbox and lecture others about what you think they should do and what you think is “correct”.

Even when you have a year or two of savings set aside in an emergency fund, it’s amazing how fast it can disappear with unforeseen expenses, especially if you have other family members that unexpectedly need help. At some point you may have to make hard decisions.

Many people do live paycheck to paycheck, and not because they bought a new iPhone. The minimum wage in this country is $7.25. Think about working full-time and netting less than $1,000 a month.

No one said anything about high utilization. If I’ve got a $5,000 credit limit, a $600 balance and a $30 payment, and I skip a payment—with no additional interest incurred—none of the negative consequences you mentioned are applicable. No being turned down, no impact on credit score.

Whether you skip a payment and have a $600 balance instead of a $570 balance doesn’t affect your credit standing in the least. For exactly the reason I said: “The payment amount is a very small amount with respect to the balance. The increase in balance caused by a missed payment is negligible.”

 

[I7guy]

It's a Goldman Sachs card. The money is lended to you by the bank, not Apple. Your gratitude is misdirected.

Goldman Sachs is the money lender, Apple controls the policies and terms.

 

[PickUrPoison]

Apple is not a bank. They are not allowed to lend money. If anything, Apple is going to make money from this move because they collect fee from transactions. With delayed payments, people will continue buying thus keeping Apple fee stream alive. So, thank Goldman Sachs for this but you probably won't because that would sound somewhat ridiculous. Once you think about it, thanking Apple would be just as ridiculous.

Did you even read my post? I said Goldman is the issuing bank. But make no mistake, it’s an Apple Card.

Very likely Apple made the decision to allow payment and interest deferrals, and if so it’s also very likely they’re making GS whole. But you wanting to take every opportunity to crap on Apple is understandable.

So yes, thanks Apple, and thanks especially to Tim Apple, for taking some of the stress away from your cardholders in this difficult time. Hopefully other companies will follow Apple’s lead and do likewise.

 

[I7guy]

Apple is not a bank. They are not allowed to lend money.

Seems like a captain obvious statement.

If anything, Apple is going to make money from this move because they collect fee from transactions. With delayed payments, people will continue buying thus keeping Apple fee stream alive.

Conjecture.

So, thank Goldman Sachs for this but you probably won't because that would sound somewhat ridiculous. Once you think about it, thanking Apple would be just as ridiculous.

Probably better to thank apple.

 

[falainber]

Seems like a captain obvious statement.

Conjecture.

Probably better to thank apple.

You statement is exactly 0% more factual than mine. You keep busy labeling other people opinions without posting any substance. Are you trying to deny that if people are allowed to postpone the payments they will be able to buy more? Are you? Are you trying to deny that Apple will make money from those extra transactions? Are you? And if not, what exactly are you protesting? Do you really believe that Apple could just have told Goldman Sachs to stop demanding the payments? I am going to assume that you are just that naive.

 

[I7guy]

You statement is exactly 0% more factual than mine. You keep busy labeling other people opinions without posting any substance.

No I just call 'em as I see 'em.

Are you trying to deny that if people are allowed to postpone the payments they will be able to buy more?

Yes. Especially those that can't pay their bills, if there is a universe of those people. As opposed to the conspiracy theory of apple postponing payments to make money.

Are you? Are you trying to deny that Apple will make money from those extra transactions? Are you?

What extra transactions? The one's you have an "opinion" about?

And if not, what exactly are you protesting? Do you really believe that Apple could just have told Goldman Sachs to stop demanding the payments? I am going to assume that you are just that naive.

What happens when people assume? Can you point to some authoritative source about the business arrangement between the two? I can't, but I'm not that naive to assume Apple has no say in it.

 

[falainber]

Did you even read my post? I said Goldman is the issuing bank. But make no mistake, it’s an Apple Card.

Very likely Apple made the decision to allow payment and interest deferrals, and if so it’s also very likely they’re making GS whole. But you wanting to take every opportunity to crap on Apple is understandable.

So yes, thanks Apple, and thanks especially to Tim Apple, for taking some of the stress away from your cardholders in this difficult time. Hopefully other companies will follow Apple’s lead and do likewise.

"Very likely Apple made the decision to allow payment and interest deferrals." Of course they did. They decided that Goldman Sachs can get by with less profits and made a decision for them. I am sure that in this partnership Apple is the one setting the policies and interest rates (even though as a non-bank entity they do not have any right to do it). And now let's look how non-Apple centric media reports the same news. For example, Reuters:
Goldman Sachs lets customers delay March payments on loans, credit cards

NEW YORK (Reuters) - Goldman Sachs Group Inc (GS.N) told customers of its online bank, Marcus, and its Apple credit card on Monday that they can take an extra month to make payments, with no penalty or additional interest, if they are financially stretched due to the coronavirus.
Goldman's announcement followed similar moves by lenders like Citigroup (C.N), which rolled out hardship assistance to customers last week, and automakers, which offered customers the chance to reschedule car loan payments.
Marcus customers who defer payments will not be charged additional interest and the terms of their loans will be extended one month.
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No I just call 'em as I see 'em.

Yes. Especially those that can't pay their bills, if there is a universe of those people. As opposed to the conspiracy theory of apple postponing payments to make money.

What extra transactions? The one's you have an "opinion" about?

What happens when people assume? Can you point to some authoritative source about the business arrangement between the two? I can't, but I'm not that naive to assume Apple has no say in it.

It's just your opinion and assumptions. They are absolutely baseless and non-sensical. I just posted a Reuters article that clearly explains that the decision was made by Goldman Sachs. Stop with your Apple fantasies. I understand that AAPL was hit hard today once again but that is not a good reason to post BS.

 

[I7guy]

...
It's just your opinion and assumptions. They are absolutely baseless and non-sensical. I just posted a Reuters article that clearly explains that the decision was made by Goldman Sachs. Stop with your Apple fantasies. I understand that AAPL was hit hard today once again but that is not a good reason to post BS.

There is no basis in much of what you wrote above. It's hyperbolic and nonsensical about apple making it on the backs of the customers with the credit cards with a payment deferral. It's an (bad) opinion that people are going to use this leeway just to spend more as an absolute statement of fact. Just BS, right? And, it's very likely there was a discussion between the two firms with GS making the announcement.

 

[Dammit Cubs]

I would like to meet the famous Marisa Robertson

 

[falainber]

There is no basis in much of what you wrote above. It's hyperbolic and nonsensical about apple making it on the backs of the customers with the credit cards with a payment deferral. It's an (bad) opinion that people are going to use this leeway just to spend more as an absolute statement of fact. Just BS, right? And, it's very likely there was a discussion between the two firms with GS making the announcement.

Yes, assuming that people who were allowed to defer the payments would be able to keep using the credit card (as opposed to the situation where they failed to pay and got their card revoked) is absolutely BS.

Also, in this discussion between Apple and GS, Tim Cook was so convincing that GS decided to defer the payments not only to Apple Card holders but also to Goldman Sachs online banking customers. Moreover, Citigroup somehow got hold of the information about this meeting and decided to let their customers to defer the payments. Not just that, they managed to do it even before Apple talked to GS. Is not Apple amazing?