Apple Details Why Some Apple Card Applicants Might Get Declined

[PickUrPoison]

As I indicated in another thread, I was declined for a bunch of reasons that don't apply to me, then I was invited again the next day.

There's of course no appeal process or way to report bugs so I'll just wait.

Unfortunately (and unhelpfully) it’s not at all unusual for TransUnion’s “reasons” to be arbitrary, misleading or flat out wrong. As such, it’s best to ignore them. Even when they’re correct, they don’t actually indicate why you were declined, but rather why your score isn’t higher.

You were probably declined because your score was too low or, much less likely, because your income doesn’t indicate an ability to repay. In addition, some lenders have other factors that will result in an automatic decline, like bankruptcy, charge-offs, etc. but typically it’s because your score was below their cut-off.

Get a hardcopy of your report directly from TransUnion, and when you go through your accounts you should be able to see what negative items are holding down your score. There very well could be wrong info which, once removed, would result in your app being approved.

 

[MrGimper]

Not interested in Apple Card until it has USB-C

/s

 

[kimmen]

In my ignorance I was under the impression that Apple, and most phonemakers, laughed at "Cards", and that holding a phone close to a terminal was the only way, and the future of payment...

What do I know.

 

[mecloud]

I think some people might just be experiencing late-beta-style glitches with the application/approval process.

The weird glitch I had was: getting an email (to the address I have set in iCloud) saying they couldn't send my invite because my email address wasn't that used by my iCloud account. But it was. Called their support people, explained it to them, and the next day the Apple Card application showed up in my Wallet. Approved for 8500 CL & 17.99% APR. I was slightly surprised at not getting the lowest APR because my Transunion FICO score is 835 and Transunion is what they pulled. Also this is the lowest CL of any card I currently have.

A couple of things struck me as interesting: as others mentioned, VERY cool that terms are given *before* the hard pull is done. I'd even call that "nice". Nobody besides a farily small credit union has ever done that when I applied for a credit card before. Also I believe this was the first time I ever applied for any kind of credit and was not asked for housing expenses or name of employer.

If it's true that people with fairly low scores are getting approved (presumably with very low limits), this product might actually do a lot of good with it's extremely transparent approach to interest payments, and the "daily" cash-back. People with low FICO scores generally only have access to some pretty sketchy banks, some of which are blatantly exploitative ("Credit One" being one particularly terrible example). The way the interface is laid out, I can see where it would be a great educational tool for people with limited credit experience.

 

[Bigbear44035]

Apple last week announced an Apple Card Preview period and has since been rolling out Apple Card availability to many iPhone users ahead of a wider launch.

Apple aimed to make the Apple Card available to as many people as possible and there have been reports of people with credit scores in the 600s being approved, but there are still reasons why someone might get denied.

In a new support document shared today, Apple outlines the various reasons why someone might be declined, including low credit score, frequent credit card applications, heavy debt and low income, tax liens, bankruptcy, property repossession, past due debt obligations, a recent checking account closure by a bank, past due medical debt, and more.

Apple's support document has a detailed list of explanations for those who were declined, and when you apply for Apple Card, if you are declined by Goldman Sachs (Apple's partner) you'll get a reason why so you can cross reference it here for more information.

The document also explains how credit scores are determined (debt payments, hard credit inquiries, debt level, credit age, open loans, and more), and it details how customers can get a free credit score copy and dispute errors with TransUnion if mistakenly declined for a card. Apple recommends customers check for common errors that can be included in a credit report if there's an issue.

For customers who were declined because their identity could not be verified, Apple offers several recommendations such as verifying that application info is accurate and making sure ID scans (when requested) are clear and include an ID that's not expired and with a last name that matches the application.

When requesting an Apple Card, Goldman Sachs does a soft credit check that does not impact your credit score. Being declined or declining Apple's offer will not require a hard inquiry, which is only done when you actually accept the Apple Card.

Apple says that credit limit is determined by income and minimum payment amounts associated with existing debt, which is used to assess ability to pay.

Right now, Apple Card is limited to customers who have received an invite from Apple, but Apple appears to be sending out quite a lot of invitations to those who have signed up to be notified about Apple Card on the Apple Card website. A wide release for Apple Card could come in the next few weeks.

For more on how Apple Card works and what you can expect, make sure to check out our detailed Apple Card guide.

Article Link: Apple Details Why Some Apple Card Applicants Might Get Declined

Yesterday I applied. I have numerous cards and some have 20 grand limits. My score is 750. Yet I was declined. No common sense Apple.

 

[cocky jeremy]

This whole status symbol, rich people only get Apple Cards is just garbage. I have an iPhone 7 and $690 in the bank. I was approved. I am not rich.

Look at you over here bragging, Mr Hundredaire. Just throw it in our faces. Geez.

Seriously... the reasons they decline people is the same as any other card, really. If you get declined, it's for good reason. There's no special requirements.

 

[PickUrPoison]

Yesterday I applied. I have numerous cards and some have 20 grand limits. My score is 750. Yet I was declined. No common sense Apple.

Goldman Sachs is doing the underwriting, not Apple. In any case, there may be some glitches that are causing people to get denied, who should be approved. But different lenders have different criteria.

 

[smaffei]

For people who don't want to read the whole story, here's an executive summary.

Reasons your application for an Apple Card may get rejected:

• You're not cool enough
• You look like a dork
• You're too old (note: may overlap with the previous two reasons)
• You made fun of Tim Cook once on MacRumors

I'm an uncool, old dork and found this hilarious!

 

[Macalway]

So I wonder if the some people will desire this way out of proportion because of the Apple logo. Then if they are declined, it might not sit well will them.

Go Apple. Look what you have done to us!

 

[TheShadowKnows!]

Dudes, here is the skinny on how your credit is scored. This information is culled off from an unimpeachable source. And cuts through all the mumbo-jumbo posted in here. [And, no, you do not get a free pass by loving all-things Apple as a member of the Apple fandom.]

Bottom Line: There are six significant factors, in order of decreasing impact:

1. Factor No. 1: Payment History (High Impact)

What to know

1. A single 30 or 60 day missed payment is easier to recover from, but can hurt your score significantly.
2. A 90 day missed payment is more damaging and could disqualify you from certain loans.
3. After 90 days, missed payments can become charge-offs and be sent to a collection agency.

How this gets calculated

• This percentage follows a formula that includes all the possible payments you can make across all your reported accounts.
• For example: If you had 120 possible payments in your credit history, but had 3 late payments in that time, the calculation would be: (120 - 3) / 120 = 97.5%

2. Factor No. 2: Credit Card Use (High Impact)

What to know

1. Credit card use matters most for each individual card.
2. The average use across all your cards is important, too.
3. Try to stay under 30% (under 10% is even better!) — and remember, you don’t need to carry any credit card debt to build your credit.

How this gets calculated

• Banks usually share your info with credit bureaus on the same day each month.
• This isn’t the same day you pay your bill.
• That means you could have paid your bill to $0, but a different number gets on your credit report.

3. Factor No. 3: Derogatory Marks (High Impact)

If you have a collection

1. Since debt collectors need to have proof that their info is accurate, you should dispute a collection if anything’s off.
2. See if it’s worth negotiating your debt. If it’s old, you might just wait for it to fall off.

If you have a public record

• Public records like bankruptcies, civil judgements, and tax liens are harder to remove.
• If any info is wrong, get documentation and court records to build your case.
• Dispute with the credit bureaus to remove the public record.

4. Factor No. 4: Credit Age (Medium Impact)

​

What to know

1. If you’re paring down your accounts, don’t close your oldest credit card — it’s what gives you a long credit history
2. Sometimes credit cards will close an old account that never gets used. Use an old card now and then to prevent a potential score drop.
3. When an older account (like mortgage or student loan) falls off your report, your score could drop since you’re losing the credit history that comes with that account.

5. Total Accounts (Low Impact)

What to know

1. Having different account types (like credit cards and loans) can help your credit.
2. Don’t fret about an exact number or mix, since you’ll build these over time. The important thing is that you’re using accounts responsibly.
3. If a mortgage, student loan or auto loan falls off your report, your score could drop since you’re losing a line of credit that’s given you a lot of credit history.

6. Hard Inquiries (Low Impact)

What to know

1. It’s a temporary ding and scores usually bounce back in 3 months.
2. Plan ahead and minimize your hard inquiries at least 9-12 months before trying to get a mortgage or big loan.

An opinion, without affiliation:
OK, dudes. if you want to monitor free and unencumbered your credit history (concomitantly for both TransUnion and Equifax) without dealing with credit-reporting leaches (as they try to peddle extra useless credit ratings and monthly credit monitoring subscriptions), enroll for free at CreditKarma (www.creditkarma.com).
It is the knees bees, and an effective way to void the leaches.

 

[Applepi3.14]

Declined...I’m 18 but I have a credit score of high 700s but “my debt is too high relative to my income”

 

[LoveToMacRumors]

can't wait for it to come to canada

 

[MacClueless]

I have a question for people who are applying - and I don't know if this would be specific to USA people or not:

How are they - the bank - determining your yearly income?

DO you just enter in what you make (true or not) or do they have a system to check? Since I read approvals are done in minutes - I'm curious about this. I've only ever applied for a credit card through my bank - where my work salary has been auto-deposited....

Again just curious. I'm in Canada - can't get one of these anyways.

There’s no income verification for credit cards, though lying on the application would be bank fraud.

 

[MacClueless]

That was with an 803 FICO score

They don’t use a FICO score.

 

[cannono]

I have a question for people who are applying - and I don't know if this would be specific to USA people or not:

How are they - the bank - determining your yearly income?

DO you just enter in what you make (true or not) or do they have a system to check? Since I read approvals are done in minutes - I'm curious about this. I've only ever applied for a credit card through my bank - where my work salary has been auto-deposited....

Again just curious. I'm in Canada - can't get one of these anyways.

They typically don’t ask to verify unless it’s for a high credit line in the USA. However it is legally required for you to put a genuine estimate of your income, not inflated unrealistically. Putting a false income can be used against you legally as it is against the law itself and constitutes fraud.

 

[MacClueless]

Only doing a soft pull unless you accept the card is really really cool.

Never heard of anyone else doing that.

 

[MacClueless]

Unfortunately (and unhelpfully) it’s not at all unusual for TransUnion’s “reasons” to be arbitrary, misleading or flat out wrong. As such, it’s best to ignore them

Thank you, but I know my reports very well, and I have had no issues with any OTHER creditors, so at this point it’s pretty clear to me that it’s on their end.

I’ll apply again when the dust settles I’m sure it’ll be fine... I already have a 2% cash back card so I don t care all that much.

 

[myscrnnm]

After all - if they really cared about it they would make it easy to automatically pay off 100% of the bill every time without any action if you wanted. But many banks make it a manual thing. Just so there's a chance you forget and they can catch you with your pants down. Better bring the lube

It IS really easy. All my credit cards (Bank of America, Citi, Chase) have options to allow autopay in an amount of your choosing. In fact, they make it so easy they have sent emails encouraging me to do so and have at times offered customers incentives to enable autopay.

 

[dude-x]

Someone please help me understand why the Apple Card is such a big deal? Who cares if the card is made out of titanium, or metals from the space shuttle -- it is a credit card..

What am I missing here?

It's a credit card that doesn't have a number on it. Prevents casual number lifting theft. There is a number in the card, so someone can still skim and steal it. But it's only use is that if you go to a place that doesn't take Apple Pay, you can use the card.

 

[Weaselboy]

Moderator Note:

Quite a few posts discussing the wisdom of using credit cards were removed as off-topic. Anybody wishing to discuss that topic is welcome to start a thread on the subject, but it is off-topic to this thread.

 

[dude-x]

I'm one of the ones who got declined.

Credit score of 800+
Annual income of $1M+
No debt and pay my credit cards off every month

I am skeptical that you got denied with a credit score of 800+. Maybe your application contained an error. When you get rejected you should get a letter why with all the reasons.

 

[imola.zhp]

I wasn't going to get the card but after a few adult beverages two nights ago (my birthday) I decided to check it out and ended up getting it. They said my score was an 814 and I got approved for $9k and 17.99%. I don't keep balances so the percentage rate isn't of concern. My primary card I used before only gave me 1% back, so at least I'll get twice that when I use apple pay.

 

[yockster]

I am so done with this card with apple, 4 days, and I still can not get past the can not verify your identity, no matter how many times I make sure all the information is correct, so apple can just stick it at this point, done dealing with their support about it and no call back as promised.

 

[MacClueless]

I am so done with this card with apple, 4 days, and I still can not get past the can not verify your identity, no matter how many times I make sure all the information is correct, so apple can just stick it at this point, done dealing with their support about it and no call back as promised.

Yes, it’s buggy. Give it time.

 

[tonester697]

I am skeptical that you got denied with a credit score of 800+. Maybe your application contained an error. When you get rejected you should get a letter why with all the reasons.

That he/she hasn't (yet?) posted the reason as to why he/she was denied would seem to make his claim somewhat questionable.