Apple Announces 'Apple Card' Credit Card With Daily Rewards, Simplified Statements, and No Fees

[archer75]

I think this is great! Apple coming in and changing an industry and this is a good thing. I find my amazon card more beneficial so I won't be getting an apple card but if it can push the industry in a new direction I'm all for it.

And no, I don't pay credit card interest. Haven't in a decade. I have a budgeting system that keeps me out of debt and saving more than ever before.

 

[Alexander Becker]

I would imagine not. No other credit card of this caliber makes you pay for the card.

Besides, that would be against the "No Fees" ethos they touted during the keynote.



There is no fine print under No Fees other than "Interest charges will accrue" or something to that effect. I read it, apparently you still haven't. It's impossible to help people who choose not to help themselves.

I read the entire page before commenting Don't understand why people are so hostile for asking a simple question haha.
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He answered your question and helpfully provided a link to the primary source so you could verify for yourself. His answer was correct and direct.

You could have just said “thanks.” Fortunately for you, there are no fees for being ungrateful and dyspeptic.

He didn't really answer my question only reiterated their slogan for the card, proceeded to mock me for asking a basic question on a forum(my English), and provided a link to Apple's generic page that describes the card which I read before even coming here. Next...

 

[Nugget]

Don't understand why people are so hostile for asking a simple question haha.

And I don't understand why you are acting so bellicose and entitled while asking for help with basic reading comprehension.

No Fees, 0:33:33

 

[anjinha]

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.

You're assuming that everyone overspends when they have a credit card and that's not true. I use a credit card for everything and that doesn't make me spend more at all, because I do not see my credit card limit as "money available to spend". I know how much I can spend on things based on my budget, my checking and my savings account. I simply use the credit card instead of debit or cash because it gives me extra benefits for money that I would be spending anyway.

 

[brofkand]

You're assuming that everyone overspends when they have a credit card and that's not true. I use a credit card for everything and that doesn't make me spend more at all, because I do not see my credit card limit as "money available to spend". I know how much I can spend on things based on my budget, my checking and my savings account. I simply use the credit card instead of debit or cash because it gives me extra benefits for money that I would be spending anyway.

The post you quoted I was replying to someone who said what if they overspend with credit cards, but it is okay because they were still living within their means.

Obviously not everybody overspends with credit cards (and I knew there would be lots of replies telling me that THEY are the exception, they are too smart to be deceived by the trillion dollar banking industry - they are the ones beating the system) but many, many people do - the average credit card debt in America is near $9,000. Many more who are not in credit card debt spend more with plastic because it's easier and they don't feel their wallet getting lighter so they don't notice the money going out the window.

 

[anjinha]

The post you quoted I was replying to someone who said what if they overspend with credit cards, but it is okay because they were still living within their means.

Obviously not everybody overspends with credit cards (and I knew there would be lots of replies telling me that THEY are the exception, they are too smart to be deceived by the trillion dollar banking industry - they are the ones beating the system) but many, many people do - the average credit card debt in America is near $9,000. Many more who are not in credit card debt spend more with plastic because it's easier and they don't feel their wallet getting lighter so they don't notice the money going out the window.

I mean, overspending is relative, isn't it? Is it overspending if you decide to splurge but you're still living within your means (and have savings, investments, meeting your financial goals...)? You can also overspend even if you're not using credit.

Plus what about debit? You also don't feel your wallet getting lighter with debit cards.

 

[bbeagle]

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.

I agree that using a credit card for everything including the trip to get coffee, McDonalds, etc. leads to increased spending vs. having $50 to spend during the week, and nearing the end of the week having $5 that you have to make the day through. You'll be more likely to use coupons, and go to cheaper places.

However, using a credit card for things like your cell phone bill, internet bill, TV bill, utilities bills, etc. is much better than a debit card or having it taken out directly from your checking account because sometimes those companies accidentally charge too much and would drain your account immediately. I had a friend who they took $1,300 from his account instead of $130. He was put over his limit, and didn't have money until his next paycheck (The bank took 7 days to remove the charge). It's easier to dispute a credit card charge than a debit card/checking account withdrawal.

Plus, if your credit gets stolen (mine has 4 or 5 times), you don't have to worry about all your money being gone, the credit card companies take care of it and give you a new card. Just have 2 cards you alternate between and you're fine.

 

[brofkand]

Plus what about debit? You also don't feel your wallet getting lighter with debit cards.

Exactly, debit can have the same issues as credit. It's why some personal finance teachers like Dave Ramsey talk about using cash for all day-to-day expenses, at least until good budget habits are second nature.

 

[anjinha]

Exactly, debit can have the same issues as credit. It's why some personal finance teachers like Dave Ramsey talk about using cash for all day-to-day expenses, at least until good budget habits are second nature.

Right. I'm not disagreeing that if you have bad financial habits that credit cards can make it worse. But if you are responsible with your finances you are missing out on a lot of benefits if you're not using credit to your advantage.

 

[Nugget]

Exactly, debit can have the same issues as credit. It's why some personal finance teachers like Dave Ramsey talk about using cash for all day-to-day expenses, at least until good budget habits are second nature.

A key point there being "at least until." Thanks for including that.

I consider Dave Ramsey to be like Alcoholics Anonymous but for finances. His audience is almost entirely people who have demonstrated a lack of financial maturity or a history of overspending. The advice he gives is suitable for people who struggle with their budgeting and finances, but doesn't necessarily apply to people who don't face those struggles. Similar to the way an alcoholic's best approach is to avoid drinking entirely and perhaps even socializing with drinkers. It's necessary for some but excessive for others.

What gets tiresome is when people who have benefitted from Ramsey's zero tolerance budgeting advice let their enthusiasm lead them to advocate Ramsey's advice as immutable rules of the universe which everyone should follow.

There are downsides to going cash only and you lose out on money and benefits for doing so. Using credit cards responsibly provides significant consumer protections, benefits, and cold hard cash. I think it's short-sighted to forgo those benefits unless you feel you absolutely have to.

 

[brofkand]

A key point there being "at least until." Thanks for including that.

I consider Dave Ramsey to be like Alcoholics Anonymous but for finances. His audience is almost entirely people who have demonstrated a lack of financial maturity or a history of overspending. The advice he gives is suitable for people who struggle with their budgeting and finances, but doesn't necessarily apply to people who don't face those struggles. Similar to the way an alcoholic's best approach is to avoid drinking entirely and perhaps even socializing with drinkers. It's necessary for some but excessive for others.

What gets tiresome is when people who have benefitted from Ramsey's zero tolerance budgeting advice let their enthusiasm lead them to advocate Ramsey's advice as immutable rules of the universe which everyone should follow.

There are downsides to going cash only and you lose out on money and benefits for doing so. Using credit cards responsibly provides significant consumer protections, benefits, and cold hard cash. I think it's short-sighted to forgo those benefits unless you feel you absolutely have to.

Funny you mention AA - Dave talks about financial irresponsibility a lot like it's alcoholism. I suppose both alcohol and material stuff can affect people the same way if they let it.

 

[anjinha]

A key point there being "at least until." Thanks for including that.

I consider Dave Ramsey to be like Alcoholics Anonymous but for finances. His audience is almost entirely people who have demonstrated a lack of financial maturity or a history of overspending. The advice he gives is suitable for people who struggle with their budgeting and finances, but doesn't necessarily apply to people who don't face those struggles. Similar to the way an alcoholic's best approach is to avoid drinking entirely and perhaps even socializing with drinkers. It's necessary for some but excessive for others.

What gets tiresome is when people who have benefitted from Ramsey's zero tolerance budgeting advice let their enthusiasm lead them to advocate Ramsey's advice as immutable rules of the universe which everyone should follow.

There are downsides to going cash only and you lose out on money and benefits for doing so. Using credit cards responsibly provides significant consumer protections, benefits, and cold hard cash. I think it's short-sighted to forgo those benefits unless you feel you absolutely have to.

Exactly! Financial advisors will give you very different advice if you're struggling v.s. if you're responsible and comfortable with your finances. A good example of that is that wealthy people will still have mortgages even if they can pay for a house in cash. That's because they will come out ahead if they keep their money in the stock market, even with paying interest on the mortgage. But if you're financially irresponsible and come into a lot of money it would probably make more sense to pay off a mortgage or other debts.

 

[Alexander Becker]

And I don't understand why you are acting so bellicose and entitled while asking for help with basic reading comprehension.

No Fees, 0:33:33

My reading & comprehension has nothing to do with the question, once again. You both assumed I didn't read anything or understood what I read? Entitled? I asked a question on a forum politely, after reading Apple's page on the card. Pathetic, childish, unhelpful, keyboard warriors, etc.

A simple response such as your second part showing the screenshot (I must have missed during the keynote) would have been perfectly appropriate, no need to go into belittling and assumptions. I appreciate it!

 

[apolloa]

Apple already had a credit card. You being unaware of it doesn't mean they're jumping into a new arena.

Well if they make this cars international they are entering a new arena. But as I said anyone and everyone in retail these days seems to offer one!!...

Another step closer to only needing your phone, a blessing and worry at the same time.
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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.

Hence my last sentence... I wrote how it’s chucking everything at the wall, then concluded but everyone and anyone in retail seems to have a card on offer, so it’s nothing new.
And it may be genius, but would it lead to lower Apple prices?...

 

[Abazigal]

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 ...

I know of their role in the subprime mortgage crisis, and that’s really besides the point here. How many people continue to use Samsung products despite the company being linked to labour abuses and poor working conditions all over the world?

The real interesting issue is why Goldman Sachs? The way I see it, Apple is the one with the power in this relationship. Obviously, Apple has no desire to become a bank, so it has to outsource all this backend administrative and legislative work to another company. Goldman only recently entered the consumer banking industry, if memory serves right, so it is likely more willing to think outside the box and agree to demands other banking companies might baulk at, because this partnership is one way of quickly gaining a foothold.

The goal here is really to improve Apple Pay adoption. I sure won’t mind it coming to Singapore.

 

[brofkand]

How many people continue to use Samsung products despite the company being linked to labour abuses and poor working conditions all over the world.

Apple's contract factories in China have (or at least had) suicide nets outside the windows to keep people from killing themselves at work. Let's not pretend that Samsung is the only company that is guilty of labor abuse.

The real interesting issue is why Goldman Sachs?

It's obvious isn't it? Goldman was willing to give the biggest slice of the pie to Apple. I'm sure they would have gone with Capital One, Wells Fargo, whoever was willing to give them the most money for the least amount of creative restriction. Same reason why the iPhone was an AT&T exclusive for so long.

 

[MisterSavage]

What gets tiresome is when people who have benefitted from Ramsey's zero tolerance budgeting advice let their enthusiasm lead them to advocate Ramsey's advice as immutable rules of the universe which everyone should follow.

There are downsides to going cash only and you lose out on money and benefits for doing so. Using credit cards responsibly provides significant consumer protections, benefits, and cold hard cash. I think it's short-sighted to forgo those benefits unless you feel you absolutely have to.

I wish I could upvote this seven billion times.

 

[Frank Dalton]

This is an incredibly gross development. Very disappointing to see how Tim Cook is digging Apple further into this "services" hole. What, pray tell, is so innovative about a credit card?

 

[macduke]

That is still a good story. It goes to show the importance of one not living beyond their means, and taking steps to make smart decisions. If you wonder why we hav had issues with credit and the housing bubble popping, its because people were not making smart decisions, and living beyond their means.

That is slightly off topic, but it goes to say that credit users need to be smart if they want to succeed. I really hope the Apple Card program takes off, as I would love to even use it for my iTunes purchases and expenses like my fuel expense. Stuff that I normally pay with cash for and can easily pay off. I just hope that my credit score is up to par after it is released. Sitting around 630 right now.

Best of luck to you! I was once there and have now clawed my way slowly up to 810, although it will probably go down a few points with this new account—but that’s what it’s for! Game the system.

 

[Ledgem]

I've never bothered to check if my cash back/rewards percentage changes if I'm using it physical vs Apple Pay. Is this a universal thing, or depends on the card?

I'd imagine it depends on the card. I only use two cards - one has a flat percentage back for everything and as far as I know doesn't care if you use it directly or through Apple Pay, whereas the other one has variable percentages back depending on the type of place you're shopping at and specifically mentioned in the fine print that the increased percentages back do not apply if you use the card through a wallet app-type of thing (can't remember if they specifically called out Apple Pay). Admittedly I haven't tested it for myself to see if it was true - I should probably do it one time, just to be absolutely sure, because I really prefer to use Apple Pay where I can...

Edit: I checked with my bank and they claim that this actually shouldn't be the case. I didn't save the original document but there's no mention of it in their online documents. So this was either changed or I misread it... I'll give it a try in the near future. It'll be nice to get back to using Apple Pay in my usual shopping places.

How so? All USPS ive been too you put the card in yourself and they never see it.

Maybe your Post Office, but not any of the ones that I’ve been to on a biweekly basis in the NY & NJ area for the past 15+ years that I have not been signing any of my credit or check / debit cards.

Good to hear. I haven't been to one without a signed card since being told about five years ago, but the one that told me they didn't accept unsigned cards was in a not so great place... bullet-proof glass separating you from the teller and all that. So even though they made it sound universal, maybe it really was just that location. Or just that teller...

 

[C DM]

This is an incredibly gross development. Very disappointing to see how Tim Cook is digging Apple further into this "services" hole. What, pray tell, is so innovative about a credit card?

Things don't simply have to be "innovative" for them to be something worthwhile that both consumers and companies can benefit from.

 

[Abazigal]

This is an incredibly gross development. Very disappointing to see how Tim Cook is digging Apple further into this "services" hole. What, pray tell, is so innovative about a credit card?

It’s about how Apple is using its control over hardware and software, plus the fact that it doesn’t need the apple card to be profitable right away, to rethink the whole credit card experience.

Yes, any company could in theory have done what Apple did, but the point is that they haven’t, because it conflicts so much with their own business model. Waive annual fees? Not sell your data? Risk their own bottom line?

It’s not a multi-orgasmic thrill ride, but it’s a welcome offering for those who appreciate what Apple has to offer here regardless.

 

[cbaca51]

I’m sold. Apple doing big things. This is why I love them.

 

[Tech198]

If Apple gives the user full convenience, and no fees on them, how exactly can they control and keep you in check?

Just like Apple pay, a rollout and acceptance, I already have one CC,,, i don't need another card in my wallet for those stores which do not accept Apple Card.

Graphically views looks simple enough for anyone to understand heir spending, but i always question the "learning" behind this.

I do like the "no fees".. I hate paying an annual fee.

Apple's biggest market here would be using it internationally, (.. or those that just spend allot).. And its made of titanium !!..

 

[Vjosullivan]

Then dont buy it. Simple. Apple is not forcing you to give them money.

Until you get into debt.