Credit cards cause people to spend more - it is proven. Yes it is possible to own credit cards your whole life and never pay any interest (thus having no debt), but you will end up spending more than someone who pays cash. According to some research I've seen it's up to 100% more. No credit card rewards program will ever erase that deficit. Some may think they're immune to that behavior, but statistics state otherwise.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple Announces 'Apple Card' Credit Card With Daily Rewards, Simplified Statements, and No Fees
- Thread starter MacRumors
- Start date
- Sort by reaction score
Credit cards cause people to spend more - it is proven. Yes it is possible to own credit cards your whole life and never pay any interest (thus having no debt), but you will end up spending more than someone who pays cash. According to some research I've seen it's up to 100% more. No credit card rewards program will ever erase that deficit. Some may think they're immune to that behavior, but statistics state otherwise.
Statistics show that happens to everyone that makes use of credit cards and to the same degree?
Is there no one who spends more whether or not they have or use credit cards?
And even for those who might spend somewhat more on something that they actually need or want, as long as it's perfectly within their means and still allows them to have the money for other things they need or want, why would that necessarily be something that is negative overall for them?
Last edited:
You'd also end up spending "less" with cash all the time if you didn't have the right amount of cash with you. No thanks.
no crap people spend less when using cash. No one goes around carrying more than like $100 cash on them.
Congrats.
You should be good after 6 months with consistent payments (in the 680-720 range if you started with no credit history / a blank credit report). The secured card company you’re with will probably allow you to upgrade to a unsecured card, without the inquiry hit, or new account hit.
If possible, max out the card, and pay it off in full (a lump sum payment) at least two days before the billing cycle ends / closes (no less than 2 days, so the payment settles in time for the closing. You’ll clock-in a very small utilization on your credit report. The account balance gets pushed to the credit bureaus when your billing statement closes, and you’ll always close with a $0 or low balance (anything greater than 30% utilization at a closing is detrimental, less than 10% upon closing is optimal, but as low as 0% could be hurtful also, most recommend closing with 4-7% utilization)). That is a fast way for them to upgrade you. The reliable payments reflect trustworthiness, and the repeated hitting the limit reflects you need a higher limit / more room, and the lump sum reflects you can handle larger amounts of cash. Once or twice can be a fluke, but doing it all of the time for six months? Nah. Definitely shows consistency / reliability / methodology.
When I started building my credit I had no credit history at all, and hit 750 by the 12 month mark, 780 by the next year. But I went the AMEX authorized user, rather than the secured card route. After six months, Amex upgraded me to my own card, with a 3k limit ... since for the entire 6 months I maxed out my prior 1k limit and paid it off a few times per month (I stopped using cash and purely used my card to be able to manage that). Them seeing me reliably handle that amount, gave them the verification to give me three times what I proved I could handle (since less than 30% utilization is healthy, they tripled what I proved so I’d remain under 30%). — Anyway, 3 or 6 months is usually the “evaluation” period depending on the company. So if a credit increase is requested and granted, they evaluate your reliability at the higher limit for 6 months before they’ll allow you to increase the limit again. That’s the general rule of thumb.
So, 6 months, and you should be good to request an evaluation / upgrade if they haven’t given it to you automatically already. GL. =)
Well they will definitely take the Apple Card if they take Mastercard. Either with the physical card or with Apple Pay. Near me, Stop and Shop unofficially supported Apple Pay (probably due to misconfigured terminals), and then they shut it off because it wasn't supposed to be on in the first place, then they turned it on officially a year or two ago. So whether they take Apple Pay or not is itself in flux for some places (especially if it's a local store and they replace the terminals and they don't really know what they're supposed to take).
Also, whether or not they take a card has nothing to do with paying the card each month. It's only about whether they take Mastercard, Visa, Discover, or American Express. If you see such a logo on your card, and on the terminal (or on the door), they take the card.
(also with Apple Pay and other NFC payments there's a weird problem with Discover card and NFC, Discover has a different communication standard with the terminal over NFC, and that means some terminals take Discover over NFC and some don't, even if the store takes Discover. American Express is similar but I haven't seen any problem with AmEx over NFC. It can be problematic to try to rely on a Discover card over NFC.)
Totally.
I’m in UK and still no ECG on the watch - which never gets mentioned anymore.
No sign of it ever coming to UK.
This to me is like Netflix announcing they are going to sell petrol.... it’s so far out of their business model is ridiculous, hell even Goldman Sachs said it won’t generate much business for them..
But then again they have a failing car automation project ongoing, may as well throw more muck at the wall in apple HQ to see if it sticks eh?.. less focus on those Apple computers and phones and tablets...
Then again everyone else in retail does their own cards. So Apple obviously thought why not jump on that bandwagon..
But an iMac redesign would have been nice?
But then again they have a failing car automation project ongoing, may as well throw more muck at the wall in apple HQ to see if it sticks eh?.. less focus on those Apple computers and phones and tablets...
Then again everyone else in retail does their own cards. So Apple obviously thought why not jump on that bandwagon..
But an iMac redesign would have been nice?
Oh dear. A corrupt organisation going out of business. How would we sleep at night?
Even the badly run banks in here in the UK don't disappear. The Government bails them out with public money & they are allowed to carry on as if nothing has happened, no questions asked.
Another thought came to mind - every user on Apple card means one less credit card user whose purchase history can be tracked by the bank.
Apple is clearly jealously hoarding its best customers for itself and the financial institutions should start to feel afraid as well.
Apple is clearly jealously hoarding its best customers for itself and the financial institutions should start to feel afraid as well.
It all comes down to people's individual plans for the future. If someone is okay with overspending, even if it may be within their means, then more power to them. Others may prefer to pay cash and spend less for impulsive extras like cell phones, ball game tickets, etc., and put the extra into savings, or investing, or other more fun activities like vacations.
The irony behind this is Apple is working with Goldman Sachs. If you and most people who are proud of this new product only knew Goldman ...
Apple already had a credit card. You being unaware of it doesn't mean they're jumping into a new arena.
It doesn't necessarily have to be overspending, as opposed to the other being underspending basically. And again, that's still going under the assumption that it happens to everyone and to the same degree.
Yes but only if the card connected to the Apple Pay is a Visa.
Reading through these comments I can tell most don't know how credit cards work or how the credit card companies make money. It's all about math and probability which barely anyone understands correctly. Apple also said the number, expiration date, and cvv code will be on the wallet app if needed. Not signing credit cards or putting SEE ID do not matter, in fact that technically invalidates cards with a signature panel. With the chip cards there is no need for signatures and everywhere should have chip readers as stores upgrade. Apple needs to expand per demands of stock market and this is a genius way to do so, I was not expecting this at all. Services is a lot easier than creating new hardware and I can only foresee eventually them licensing everything to every platform to compete which is opposite of how Apple has always worked, but it will make money if they keep the quality up.
Sources: I worked for a big credit card company for years, I have a degree in math, and I've owned my own restaurant for 13 years.
Sources: I worked for a big credit card company for years, I have a degree in math, and I've owned my own restaurant for 13 years.
I carry two cards in my wallet: one is an Amex, one is from Capital One. It’s not hard to get cards from banks that didn’t cause a global financial crisis.
[doublepost=1553699145][/doublepost]
I’m probably going to be writing about the credit card because it was, to me, the most perplexing thing in a very strange and perplexing event. It’s all about privacy, financial health, no fees, avoiding paying interest. Those things all sound great. The cash back isn’t anything exceptional, especially when using the titanium card (basically any cash back card can beat 1% cash back) but with the software behind it, it makes sense for people who just want a reliable card and great app to back it and not play games with points and annual fees etc. But then Apple says they chose Goldman as the bank behind it, and the room goes completely quiet. For all of the stress on privacy, ethicality, etc, it makes no sense for them to ruin that image by choosing Goldman. I guess they hope the young people getting this card forget about what Goldman did and the image that accompanies their name.
Not really that far out. There are alot of retailers who offer Credit cards... Some which can only be used at their stores but also some with Visa/Mastercard logos on it that can be used anywhere. For example I have a Jetblue mastercard which gives me like triple points when I use it to purchase flights. My wife has a Macy's Visa which she can use anywhere but gives her extra perks and discounts when used at Macy's.... Lot's of retailers do this and its very common... not far out or out of the ordinary at all.
It's a genius business plan actually, not only are you making money from the sale of your products but you're also making interest on the backend, similar to what car companies have been doing for years.... Some of the bigger ones set up their own financing branch... So when I leased my last BMW I was leasing it from BMW financial... They make money on both ends and don't have to pay fees to any bank for the service.
Last edited:
Awesome good stuff to know about. Thank you for post.
[doublepost=1553703500][/doublepost]
You dont have to build Apple up to me. I already like Apple.