It also depends on what you report as your income. They're most likely taking a ratio of credit limit to annual income to determine the interest rate.
Not always/absolutely true--I know of a person who has a BK, got approved for and started using CCs again after 6 years into BK, has borrowed against and hasn't had a single late CC payment for three years since, credit score in the low to mid 600s during those three years...only to recently have his score drop below 600 because his overall CC balance and utilization started to climb really high. So there are indeed scenarios where your score doesn't just stay at 600, even if you borrow and make on-time payments.
I'm guessing that even though you had a low score, you probably didn't have either very high credit card balances (either on a per-card or combined cards basis) and/or high debt to credit card line ratio--which if indeed the case would explain why you got approved in spite of a BK and low score...although I'd be curious to hear what your score is such that you deem it a "low" score. For some folks anything below 700 is considered low while other folks feel that anything below 640 is low.
That's true. While a high overall credit limit is good for your credit score (higher chance of low utilization ratio), it can be a negative for potential lenders as they will be looking at your income to credit line ratio. I think reported income plays a much larger role in acceptance/declination for the Apple Card than most people here realize, who are instead focusing mainly on their credit score.
Apple approves a credit card for someone, they get accused of subprime lending.
Apple rejects someone’s application, they are accused of being elitist.
Apple just can’t win.
[doublepost=1565886063][/doublepost]The good news... I was approved at $20,000.
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
No, it does not. As you mention, unless/until you accept the offer, there is no subsequent hard pull. They’ve basically eliminated any reason not to apply.
Maybe, maybe not. I’m sure they had discussions about the underwriting criteria vs. risk. If Apple wanted Goldman to go further than they were willing to go on their own, Apple could well have agreed to share or even assume that added risk.
Well, considering people with credit scores in the 600s were also approved, what he/she meant to say was, "Only everyone, please."
What's amazing to me is how many people don't understand how Apple Card works. It is absolutely an Apple product through-and-through.
