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Apple Card Monthly Installments: How the Interest-Free iPhone Financing Plan Works

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Apple Card has a new Monthly Installments financing option that allows customers to purchase an iPhone with the Apple Card and pay for it over two years with no interest or fees in the United States.

Apple has shared a new support document explaining how the monthly installment plan works, which we've detailed below.

apple-card-monthly-installments-1-800x789.jpg

When using Monthly Installments, the cost of your new iPhone is divided into 24, interest-free monthly installments. Each installment is included in your Apple Card minimum payment and is due every month for 24 months. Monthly Installments are billed to your Apple Card statement on the last day of the month.

You can use Apple Card Monthly Installments to buy more than one iPhone. The number of iPhones you can buy is only limited by your available credit.

For each iPhone purchased with the Apple Card, you will receive 3% Daily Cash. If the iPhone is purchased between December 10 and December 31, it is eligible for a doubled 6% Daily Cash as part of a holiday promotion.

AppleCare+ can be bundled with the iPhone as part of the monthly installments.

How to View and Pay Apple Card Monthly Installments

Paying for an Apple Card Monthly Installment is as simple as paying off your minimum payment or higher each month.

To see and manage your Apple Card Monthly Installments, update to iOS 13.2 or later. Then, open the Wallet app, tap on your Apple Card, tap the button with three-dots in the top-right corner, and tap Installments.

apple-card-monthly-installments-iphone-2-800x789.jpg

The installments screen shows the total amount paid off so far, the remaining balance, the due date and amount of your next monthly installment, and a history of your monthly payments. There is also a Pay Early option that can reduce the number of payments, but this requires paying off your entire Apple Card balance first.

If you tap Total Financed, you can review other details like a description of the iPhone you purchased and how much Daily Cash you received.

As a shortcut, when you purchase an iPhone with Apple Card Monthly Installments, you will receive a notification on the iPhone or iPad you use to manage your Apple Card that can be tapped to view installment details.

Apple Card Monthly Installments are available for purchases made at Apple Stores, Apple.com, and through the Apple Store app.

Apple already offered interest-free iPhone financing through its iPhone Upgrade Program, but the Apple Card plan has a few advantages, including cash back, managing payments in the Wallet app, and no late fees.

Article Link: Apple Card Monthly Installments: How the Interest-Free iPhone Financing Plan Works
 
Article Link
https://www.macrumors.com/2019/12/10/how-to-finance-iphone-with-apple-card-installments/
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The information does not provide clarity for people who pay off their balance in full each month but just want to pay the minimum required for the phone itself.

Anyone have information on this? It seems like a lot of manual work in this case.
 
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I wonder if they can retro add this. i used my card to buy my iphone, figured it would be the best way.. but this adds so many other bonus. I should call them and see..
 
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"Apple already offered interest-free iPhone financing through its iPhone Upgrade Program, but the Apple Card plan has a few advantages, including cash back, managing payments in the Wallet app, and no late fees."

I've got my payments for the IUP program tied to a credit card so managing payments and no late fees isn't appealing at all.
 
It’s normally bad form to max out more than half your available credit and to top it off.... to hold that balance for more than 12 months

I supposed if you have more credit cards with great spending habits... it’s not so bad
 
The Afroman said:
I wonder if they can retro add this. i used my card to buy my iphone, figured it would be the best way.. but this adds so many other bonus. I should call them and see..
Click to expand...

Please update us on what they say, I bought 3 iPhones last month, I wouldn't mind pushing the payments for a year lol
 
And this of course is the year that I pick to start the upgrade plan. I'll be in the middle of a cycle at next iPhone. Hope they pay big for our 11 Pros.
 
jrhop said:
This?
View attachment 881842
[automerge]1575993261[/automerge]

Get a better job!
Click to expand...

That does not explain the issue. So for example lets say I spend $500 in one month of miscellaneous items plus have my iPhone installment on it of lets say $20.

I want the card to automatically pay the $500 + $20 (iPhone Installment). It seems that if I pay the full mount of the balance it will pay the full amount of the phone as well.
 
moabal said:
That does not explain the issue. So for example lets say I spend $500 in one month of miscellaneous items plus have my iPhone installment on it of lets say $20.

I want the card to automatically pay the $500 + $20 (iPhone Installment). It seems that if I pay the full mount of the balance it will pay the full amount of the phone as well.
Click to expand...
The instalment is divided into 24 months, you only pay this divided up cost irrespective of what other spending you make. It wont pay off the whole balance of the phone. Although it looks like you can make other voluntary payments to reduce the phone balance.
1575993836706.png
 
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It is interesting that this counts against your available Apple Card credit. If I just use Apple's regular finance plan it doesn't. I guess it doesn't make that much of a difference to me, but it's an interesting thing to point out.
 
jrhop said:
The instalment is divided into 24 months, you only pay this divided up cost irrespective of what other spending you make. It wont pay off the whole balance of the phone. Although it looks like you can make other voluntary payments to reduce the phone balance.
View attachment 881845
Click to expand...

I see it now. The key sentence is: The "Your Apple Card balance (I assume the full balance of the card) includes your monthly installment. So the full balance left to pay off the phone is not "part of the full balance".

Thanks for the help.
 
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mattster16 said:
It is interesting that this counts against your available Apple Card credit. If I just use Apple's regular finance plan it doesn't. I guess it doesn't make that much of a difference to me, but it's an interesting thing to point out.
Click to expand...
Is the regular finance plan 0%?
 
Quite a sad state of a affairs when people are financing their iPhone purchase. Maybe I come from a different mentality, but how I look at it is, either you can afford it, or you cannot. The only exceptions to this rule for me is when it comes to acquiring a new property or vehicle.
 
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MacBird said:
Just one point of clarification, people who currently use the IUP program get 3% cash back as well if they link the loan to the Apple Card.
Click to expand...
Yes, but they get 3% of each payment each month. This plan pays the 3% all at once, up front.
 
mattster16 said:
It is interesting that this counts against your available Apple Card credit. If I just use Apple's regular finance plan it doesn't. I guess it doesn't make that much of a difference to me, but it's an interesting thing to point out.
Click to expand...

Apple’s regular financing, the Barclaycard, is a separate line of credit with completely separate terms that aren’t nearly this good.Two open lines of credit can affect a credit score in different ways, sometimes it’s good and sometimes it has a negative impact.
 
I feel bad for the Apple Retail people. Now, they’ll have to push people to buy Apple Care+ and also try to push them to sign up for Apple Card.

They must be pushed really hard internally to make Apple Care+ sales. I’m sure the same will be true for Apple Card sign ups. When I bought an iPhone earlier this year, the sales guy asked me several times during the course of the transaction if I wanted to add Apple Care+. I finally had to be more blunt than I’ve ever had to be with any Apple Retail person and say, “Look, man, I don’t want it. Please stop asking.”
 
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