Apple Card's Base APR Lowered to 10.99% for Some Cardholders

[cp1160]

Equifax FICO Score ranges from 250 to 900.

That's not a FICO score. That's Equifax's proprietary score. The FI in FICO stands for Fair Issac, the creator of the FICO score. I assure you their scores range from 300 to 850. See the link below (or the data from the link I posted).

I cannot tell you exactly how they compare, but there are industry specific scores from third parties, some range to 900, some go to 1000. The Equifax website specifically states their scores range to 850.

There are only really two scores that matter when getting credit, they are the FICO score and the VantageScope score. Anything else is a pretender to the throne, as in they wish they were Fair Issac. You want to be known for good credit, then pull a 800 or higher true FICO score.

If anyone tells you they are the same....they are not.

What is the Difference Between Credit Scores from Equifax and Credit Scores from FICO?

help.equifax.com

Both the Equifax Credit Score and the FICO Score are general-purpose score models used to predict credit risk. The Equifax Credit Score is a proprietary model created by Equifax. The FICO Score is a proprietary model created by Fair Isaac Corporation (FICO) . All Equifax consumer services and tools make use of the Equifax Credit Score unless otherwise indicated.

The Equifax Credit Score uses a numerical range of 280 to 850, where higher scores indicate lower credit risk. The FICO Score uses a numerical range of 300 to 850, where higher scores also indicate lower credit risk.

The Equifax Credit Score can be used to calculate a score for not only your Equifax credit file, but also your Experian and TransUnion credit files. This gives you the ability to compare your credit scores across all three credit reporting agencies, which can be useful in understanding your credit.

Though both score models predict similar types of risk, it is important to remember that because they were created independently by separate companies, they should not be expected to deliver identical scores. In some cases, an Equifax Credit Score and a FICO Score calculated at the same point in time may be similar. However, in some scenarios the scores may differ, perhaps significantly, based on how the different models calculate risk.

 

[HobbesInVA]

That's not a FICO score. That's Equifax's proprietary score. The FI in FICO stands for Fair Issac, the creator of the FICO score. I assure you their scores range from 300 to 850. See the link below (or the data from the link I posted).

I cannot tell you exactly how they compare, but there are industry specific scores from third parties, some range to 900, some go to 1000. The Equifax website specifically states their scores range to 850.

There are only really two scores that matter when getting credit, they are the FICO score and the VantageScope score. Anything else is a pretender to the throne, as in they wish they were Fair Issac. You want to be known for good credit, then pull a 800 or higher true FICO score.

If anyone tells you they are the same....they are not.

What is the Difference Between Credit Scores from Equifax and Credit Scores from FICO?

help.equifax.com

Both the Equifax Credit Score and the FICO Score are general-purpose score models used to predict credit risk. The Equifax Credit Score is a proprietary model created by Equifax. The FICO Score is a proprietary model created by Fair Isaac Corporation (FICO) . All Equifax consumer services and tools make use of the Equifax Credit Score unless otherwise indicated.

The Equifax Credit Score uses a numerical range of 280 to 850, where higher scores indicate lower credit risk. The FICO Score uses a numerical range of 300 to 850, where higher scores also indicate lower credit risk.

The Equifax Credit Score can be used to calculate a score for not only your Equifax credit file, but also your Experian and TransUnion credit files. This gives you the ability to compare your credit scores across all three credit reporting agencies, which can be useful in understanding your credit.

Though both score models predict similar types of risk, it is important to remember that because they were created independently by separate companies, they should not be expected to deliver identical scores. In some cases, an Equifax Credit Score and a FICO Score calculated at the same point in time may be similar. However, in some scenarios the scores may differ, perhaps significantly, based on how the different models calculate risk.

Yes, I'm aware of the points you bring up. So if we are going strictly by a "true" FICO Score, my score is at 830.

 

[MrkJensen]

If you're at such a high interest tier, then something is wrong with your credit record. The reason why you're paying that much rests with you.

My FICO credit score is 800+, you do not get that if do not have perfect and flaw less payment record. I basically have no debt less 1% and credit is six figures. Why I sort of wonder about the high APR, but I guess if you are not an active user you sit with a high APR. For me it doesn't matter or make a different.

It is a good thing they do for people there is in a stressed situation.

 

[cp1160]

Yes, I'm aware of the points you bring up. So if we are going strictly by a "true" FICO Score, my score is at 830.

Which is "dang" near "perfect", actually call it "Excellent". There simply is no "Perfect", everyone represents a risk.

GS is not going to lower interest rates on a card holder that has not revolved. They have no reason to is the simple reason. Either you are never going to revolve so it does not matter, or if you revolve in the future they can reprice at that time as needed.

There are two things that people seem to hold as their badge of honor with cards.

They are 1) Limit and 2) Rate. If the cardholder pays off all the time, then the rate does not matter.

If they had card activity in the past with a high volume of spend, often found in the consumers' Credit Report, then the limit matters - the issuer will not want to issue a card with a $2,000 limit on a consumer that spends $3,000 a month on their cards. Likewise, if a consumer has incomplete history, or bad history, they do not want to issue a big credit line that just results in a loss.

We obviously do not know that much about your credit history, and it does not need to be in this forum. In general though, if a consumer has a lot of other cards, some with high card limits, and has demonstrated that they spend a lot on a card, then they will get a card with a higher limit. The FICO Score provides a measure on their ability to pay the card balance off as needed. My experience says that very few consumers that carry very high card balances that revolve continually do not have the best FICO scores....they are stretched. Those that carry a balance, revolve a while, and then pay it off, likely have a higher score. Those that have a strong payment history, multiple credit lines, not a lot of recent activity as in new cards, etc. will have even better scores.

 

[newyorksole]

Jeeeeez why do these Apple Card threads spark such intense debates? Who cares if people carry a balance on their credit card? Let them be.

All of the financial expert gurus love being condescending.

You only live once. If someone doesn’t have $1200 for an iPhone 11 Pro and wants to finance it or put it on a credit card then that’s totally fine. Get what you want.

(Just don’t go crazy)

 

[deeddawg]

Jeeeeez why do these Apple Card threads spark such intense debates?

It's called a discussion forum. Folks tend to discuss stuff. Kinda the nature of the thing.

 

[LV426]

Better still live within your means, debt culture is a fools errand. Purchase what you need, not what you want, as you build equity. You'll be surprised what will happen.

Companies want you to be in debt as that's exactly how they boost revenue. As for Apple simply another mechanism to turn coin, maybe better than most, however it is what it is...

Q-6

If debt culture is a fool's errand, then the world is a fool. Almost all money in world is fuelled by debt. Check out "Fractional Reserve Banking" if you want to be truly shocked. When you open your wallet and look at those crispy notes, where do you think that money came from? People working hard? People making things? Nope. More than 90% of the world's money supply is simply newly created money in the form of debt. If everyone lived within their means the world's economy would crash out of existence. Money IS debt.

Here's how it works: A bank has $1,000. It wants to lend someone $10,000 so they can buy a car. The bank doesn't have the money, but by law it is allowed to conjure $9,000 out of thin air and put it on the balance sheet. This is new money. Despite never owning that money in the first place, the bank collects interest on it, as well as the balance. The bigger the loans owned to the banks, the more they can lend. It's a global Ponzi scheme, and is ultimately underpinned by the world's ever-increasing debt being kept at bay by an expectation of ever-increasing growth.

Ultimately, who is it who pays for your every-growing equity? In large part it's the poorest among us, who live hand to mouth trapped in credit card debt.

So no need to get smug about things.

 

[Airforcekid]

Jeeeeez why do these Apple Card threads spark such intense debates? Who cares if people carry a balance on their credit card? Let them be.

All of the financial expert gurus love being condescending.

You only live once. If someone doesn’t have $1200 for an iPhone 11 Pro and wants to finance it or put it on a credit card then that’s totally fine. Get what you want.

(Just don’t go crazy)

Because the average person who does not pay in full is a financial drag on everyone who is fiscally responsible. Before buying the latest iPhones or MacBooks have you funded your IRA or 401K? Social security wont cut it 20+ years from now and their is no way the government will just allow those who didn't save to die in the streets. Look at student loans as a perfect example someone who borrows $100K and never has the ability to pay it off will drag down the economy as they can never purchase a house, new car etc. Its not entirely the individuals fault education is horrible in the US on finance but it effects everyone and even national security as the US begins to risk losing reserve currency status.

 

[ThatGuyInLa]

I use my AC for everything. pay interest affected balance monthly, so no interest. The cash back alone pays for nearly all my cloud services. Which are quite a few nowadays. Plus i really like the app for managing the card.

 

[bsolar]

You only live once. If someone doesn’t have $1200 for an iPhone 11 Pro and wants to finance it or put it on a credit card then that’s totally fine. Get what you want.

You only live once, but the bad decision you might make today could haunt you tomorrow and potentially for quite a long time. While I understand what you mean and I agree everyone is ultimately responsible of their spending decisions, incurring in debt and having to pay interest for it is always something which needs to be considered rationally and with good understanding of the long-term consequences.

Furthermore, there are likely much better options to finance an iPhone compared to credit card debt. Even if someone really wants it, it doesn't mean credit card debt is a good deal for it.

 

[mattopotamus]

I have a $6.500 limit and have had an 800+ score for well over two years, yet still have a 17.49% APR. Does anyone even know what the criteria is or is GS just spitballing?

IIRC, my initial rate was 12.99% and a $20K limit. I have no idea what the criteria was. 820-840 score depending on the agency, 26 account on my history, mortgage and car.

Jeeeeez why do these Apple Card threads spark such intense debates? Who cares if people carry a balance on their credit card? Let them be.

All of the financial expert gurus love being condescending.

You only live once. If someone doesn’t have $1200 for an iPhone 11 Pro and wants to finance it or put it on a credit card then that’s totally fine. Get what you want.

(Just don’t go crazy)

People are very passionate about their credit. I won't lie, I am too. I have worked really hard to get my score, and I spend a fair amount of time tracking the latest cards and churning rewards. It is a hoppy just like these tech forums.

 

[compwiz1202]

It was a joke, dude.

But, we also know, for example, that he's in Auburn, Washington. We could probably glean more information by seeing if the same user id is used on other sites, etc.

My CC# is 7

 

[wilhoitm]

I put the entire purchase of the Mac Pro 2019 on my Apple Card so I still have a $6500 balance on it and I didn't get the base model! lol

 

[Pman17]

Oh wow! Mine dropped to 10.99%!

 

[Dopeyman]

I have a $6.500 limit and have had an 800+ score for well over two years, yet still have a 17.49% APR. Does anyone even know what the criteria is or is GS just spitballing?

Not too much spending on that $6.50 limit

 

[alexandr]

nope.. still high af despite the excellent credit score)

 

[Clix Pix]

I hadn't been paying much attention to the interest rate, so seeing this discussion took a look to see what mine is now and, yep, they did drop it a bit, which is nice. As others have mentioned, really doesn't make a lot of difference one way or the other when one pays the balance in full each month anyway......

 

[unplugme71]

10.99 here. Still too high. Wish cc’s could get down to 5.99

 

[nylonsteel]

wow 10.99% interest - still sounds alot to me even at the lowered rate
glad i pay my cards off every month - feels good

 

[switz]

Was given a $10,000 line of credit at time of issue with the lowest interest rate. The current rate is lowered to 10.99%. Pushed the card hard in December to purchase two loaded 16" MacBook Pros putting cash in to drive the balance down to capture the 6% cash back on both units. The card is setup up to process all of the recurring charges by apps and Apple iCloud monthly fees which gives 3% back.

I was told long ago that the banks call folks dead beats that payoff in full every month as the bank gets no interest but fronts the line of credit. They do get the fees paid by the sellers when the card is used. I think their looking for the word sympathy can be found in the dictionary between two other words.....

 

[Pearple]

Jeez, who pays interest on credit cards these days?

I don’t, despite many folks here saying 10% interest rate is “normal”.

I am in a very lucky position to have some money on my savings account so I use credit cards only for “convenience” not for buying things I don’t have money for. My Bank’s personal risk for my CC is ZERO. And I will not help other people finance their purchases with their credit cards with interest rates that I will have to pay, nor won’t I throw my money into Goldman Sachses throat.

Screw Apple CC.

 

[saronian]

Mine was lowered from 12.99% to 10.99%, no advantage since it's always paid off in full.

 

[Emanuel Rodriguez]

Just noticed this reduction after reading this article. Nice gesture, but I never pay CC interest.

I kinda think that lowering the interest is more targeted towards those who don't pay it. They'll lower it as low as they can if they think that'll make you start carrying a balance. The people already paying interest are probably less "interesting" to the CC companies.

 

[brgjoe]

I think mine was 17.99% when I first got it. I just checked and now it is 12.99%.

Not that it matters to me, I always carry a zero balance at the end of each month.

 

[TroyBoy30]

thats still stupid high