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Apple Planning Interest-Free Apple Card Payment Plans for Macs, AirPods, iPads and More

Mr. Heckles

macrumors 6502a
Mar 20, 2018
706
658
Around
I don't use Experian or have any of my cards locked. It's just an anomaly that makes no sense. I also have a MasterCard Black that has no credit limit, which is a very hard card to get, but still ... no Apple Card. I just thought it would be a nice addition, but I really don't need it that badly. I'm just baffled why I was turned down lol. I've not been turned down for anything related to finances since like high school.
You don’t have a choice if you use Experian or not, Apple uses them to check your credit. There are 4 credit agencies that companies use to check your credit Experian is one of them. Also, you also should have it locked too. You done want someone opening a line of credit in your name. The fact your got denied, you might want to look into why. This can be a red flag that something bad has happened.
 
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Bandaman

macrumors 65816
Aug 28, 2019
1,037
1,950
You don’t have a choice if you use Experian or not, Apple uses them to check your credit. There are 4 credit agencies that companies use to check your credit Experian is one of them. Also, you also should have it locked too. You done want someone opening a line of credit in your name.
I know how credit works and what companies check. I meant I don't use Experian's website. I use the official myFICO app that tracks all 3 credit bureaus, including Experian. Like I said, I have over 800 credit scores across all 3 bureaus. Nothing is below 800. I've never missed a payment in my life. I've paid off every car I've owned. Have a house. Don't have anything above 10% credit usage on any of my cards. It's an anomaly. I don't know what their requirements are, but it makes no sense. I can literally get any card I want. Their card just isn't that important. I just wanted another shiny thing made by Apple, lol.
 
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Erehy Dobon

macrumors 68000
Feb 16, 2018
1,618
1,465
No service
Sheesh, like almost all personal finance discussions on the Internet, this one is full of falsehoods.

First of all, Apple is not the one running the credit check. It is Goldman Sachs, the Apple Card issuing bank. They are the ones lending you the money (i.e. extending a credit line), they are the ones you agree to accept the cardholder terms of use, they are the ones who will come after you if you do not fulfill your obligations as a borrower. Not Apple. And Apple makes this damned clear in a support document:


VantageScore and FICO scores are similar but two different formulas that are used by the three primary credit reporting agencies that are used to generate the FICO score.

The Apple Card approval process uses the VantageScore rating from TransUnion. I believe it's VantageScore 4.0. Yes, that implies there are other VantageScore types and GS is using one specific measurement as part of its overall assessment of creditworthiness. The VantageScore number is not the sole determinant.

FICO is not used in the Apple Card credit approval process. FICO is a proprietary product/formula exclusively from the Fair Isaac Corporation. Note that there are different FICO scores based on industry (an auto loan is viewed differently than a consumer credit card).
 
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Bandaman

macrumors 65816
Aug 28, 2019
1,037
1,950
Sheesh, like almost all personal finance discussions on the Internet, this one is full of falsehoods.

First of all, Apple is not the one running the credit check. It is Goldman Sachs, the Apple Card issuing bank. They are the ones lending you the money (i.e. extending a credit line), they are the ones you agree to accept the cardholder terms of use, they are the ones who will come after you if you do not fulfill your obligations as a borrower. Not Apple. And Apple makes this damned clear in a support document:


VantageScore and FICO scores are similar but two different formulas that are used by the three primary credit reporting agencies that are used to generate the FICO score.

The Apple Card approval process uses the VantageScore rating from TransUnion. I believe it's VantageScore 4.0. Yes, that implies there are other VantageScore types and GS is using one specific measurement as part of its overall assessment of creditworthiness. The VantageScore number is not the sole determinant.

FICO is not used in the Apple Card credit approval process. FICO is a proprietary product/formula exclusively from the Fair Isaac Corporation. Note that there are different FICO scores based on industry (an auto loan is viewed differently than a consumer credit card).
We know it's Goldman Sachs. Apple isn't a bank.
 
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Laces Out

macrumors newbie
Oct 12, 2017
27
11
I don't use Experian or have any of my cards locked. It's just an anomaly that makes no sense. I also have a MasterCard Black that has no credit limit, which is a very hard card to get, but still ... no Apple Card. I just thought it would be a nice addition, but I really don't need it that badly. I'm just baffled why I was turned down lol. I've not been turned down for anything related to finances since like high school.

The system puked. No harm no foul. You could call Apple if you cared enough.I wonder if your credit report shows an inquiry.
 
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Ghost31

macrumors 68030
Jun 9, 2015
2,840
3,991
What? How is this different than Best Buy doing this? Pay now, or pay later. Sadly, you actually need a credit card these days. Try renting a car or even reserving a hotel room these days without one. Besides, I lose my credit card, I make a call and all is ok. I lose the cash for my grocery shopping, I’m screwed. The reward points pay for hotel rooms for road trips.
I use my debit card for renting cars and hotel rooms. All without annual fees, with protection and worrying about overspending
[automerge]1591568530[/automerge]
I love this and will begin buying more directly from Apple as a result.

By the way, interest free financing is just simply a smart thing for those who understand the time value of money. It has nothing to do with whether you can afford the product or not (although this will certainly compel some people to buy who were previously stretching to fit an Apple purchase into their budget). It’s just smart to finance if a company is essentially willing to give you free money for a year.
Why is it smart to engage into a 24 month commitment for an iPad or something? Curious
 
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Osamede

macrumors 6502a
Oct 28, 2009
720
418
It’s not like Apple is inventing 0% financing here. This has been around for a while. I use it all the time at Best Buy because why not.

Your comment is thin, goes off track and does not respond to the substantial points I made. Better you delete this and make a standalone comment. Thanks.
 
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deanbar

macrumors member
Jul 17, 2008
38
9
Coleford, Gloucestershire, uk
As it’s still not here in Uk

Yes, I’ve been patiently waiting for it to be available here in uk as well. Roll outs to other countries after the USA don’t usually take this long. Maybe the Banks are unhappy with Apple’s financial terms - no surprise there!

I’m waiting to upgrade my iMac and iPhone, so it would be great to use the card to buy them with.
 
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MacCurry

macrumors 6502
Aug 28, 2006
418
78
Sp what happens if you're not able to pay the full balance after 12 months? Like a lot of other department store credit cards, you get back charged over 25% interest from the day you made the purchase. It should be 24, 36, 48, 60 or 72 months interest free. Many auto loans are at 0 to 2% for 60 or 72 months. Similarly so should Apple products as they are so costly.
 
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Osamede

macrumors 6502a
Oct 28, 2009
720
418
I feel like this is worrying too much about the wrong thing. Apple is (finally) joining the financing game that everyone else plays. We've basically hit market saturation point for laptops, smartphones, and tablets....This could be a significant move by Apple to steal some market share from competitors.

Market saturation: is indeep the entire point, dear friend. Apple is now moving deep into "artificially inflating stock price" territory, having already done the stock buybacks and so on.

And you cannot grow profits by "stealing market share" when you dont want to reduce the nominal selling price. So what we have here is the price drop hidden in bad debt, probably chopped up and sprinkled around, except... unlike the cows"## on a farm, nothing good grows in this kind of manure....
 
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Phil77354

Contributor
Jun 22, 2014
468
277
Eastern Washington State
. . . what happens if you're not able to pay the full balance after 12 months? . . .

. . . should be 24, 36, 48, 60 or 72 months interest free. . .

Every similar program I have seen has a provision that if the full amount is not paid within the specified period, then the full interest amount is applied. The interest rate will be whatever it is for the individual Apple Card - different card holders have different rates.

Mac Pro should probably have 72 months to pay, it costs as much as a car.
 
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Mr. Heckles

macrumors 6502a
Mar 20, 2018
706
658
Around
I know how credit works and what companies check. I meant I don't use Experian's website. I use the official myFICO app that tracks all 3 credit bureaus, including Experian. Like I said, I have over 800 credit scores across all 3 bureaus. Nothing is below 800. I've never missed a payment in my life. I've paid off every car I've owned. Have a house. Don't have anything above 10% credit usage on any of my cards. It's an anomaly. I don't know what their requirements are, but it makes no sense. I can literally get any card I want. Their card just isn't that important. I just wanted another shiny thing made by Apple, lol.
There’s 4
Equifax
Experian
TransUnion
Innovis

the fact yours is that high and you’re having issues, that might be a red flag. I’ve know people who someone else locked their credit... it was a pain to get that fixed.
I use my debit card for renting cars and hotel rooms. All without annual fees, with protection and worrying about overspending
I also don’t have any fees, I pay off my card every month, AND I get reward points/cash back for anything. I used them for hotels since we go on vacations a lot. A nice bonus, I don’t have to worry as much about my bank card being hacked. Someone racks my credit card up, that will get fixed. Someone takes my bank card info, cleans my bank account out, I’m screwed. Yes it will get fixed, but I’ve seen it happen and it takes weeks and sometimes months. Bills don’t stop.
 
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fairuz

macrumors 68020
Aug 27, 2017
2,486
2,589
Silicon Valley
Why is it smart to engage into a 24 month commitment for an iPad or something? Curious
If you can get interest-free financing, that effectively makes it cheaper no matter who you are. I've got savings hoarded (as stock, not USD) and would still buy this stuff on credit if the price is right. Except I don't need new Apple stuff.

IMO even the inflation rate is underestimated, given that the ones who estimate that are aligned with the ones who "print the money." https://fred.stlouisfed.org/series/M2 Of course, the market doesn't agree with me here.
 
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gregmancuso

macrumors newbie
Nov 1, 2014
3
5
Sorry if this is already specified somewhere - I have not found a clear answer -

How is the charge applied to your account? Does it show as the full amount at purchase but payment is separated with a minimum (1/12th) taken from your monthly payment with the rest of hte payment going to the interest bearing balance? Or, do they apply 1/12th of the total due as a separate charge each month?

If the latter, this is really not that good of a deal. In order to better manage my account, I would rather have the full balance known and I can pay forward. If I can or want to pay off in 6 months vs 12, I would need hte full amount on my card from day 1.
 
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hbt15

macrumors member
Dec 6, 2007
58
53
Can someone explain why sometimes I see a link on the “Buy” pages on apple.com for “special financing” which promises zero interest for 18 months?

Likely a 3rd party finance vendor due to lack of other options i.e. an Apple owned finance option. It's same here in Australia - I've been able to get 24 months 0% interest on iphones/ipads/macs etc direct through Apple website for years, but it's a 3rd party financier and they charge a $5 a month admin fee.

In this new scenario the financier is Apple themselves so no more middle man.
 
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Somian

macrumors regular
Feb 15, 2011
178
194
Santa Clara, CA
That's why they look at your credit record. Your credit score is hugely influenced by the number of lines of credit you have, how long they are open, what percent of utilization they are at and if they are in good standing. If all of those are positive, you have very strong evidence that they know how to handle credit.



A computer algorithm can be easily audited and understood. For example, if none of the inputs are race or gender, then you can say that the algorithm does not consider race or gender in its decisions. On the other hand, a human approver can draw conclusions when they see a person's name (imagine somebody's last name is Sun or Wong) or things like their employer (i.e. person worked for a lingerie shop) and credit history (they have a loan at the Comunidad Latina Federal Credit Union), and it would be impossible to prove either way.

That’s true in theory but not in practice, unfortunately. Even an algorithm that doesn’t have „race“ as an input could be racist.
I can highly recommend the Book „Weapons of Math destruction“ about this topic.
 
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krfr

macrumors regular
Sep 11, 2015
126
221
This would be pretty sweet. Best Buy already does this with their card if you purchase something like a $300 or $400 minimum.
 
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TonyC28

macrumors 68000
Aug 15, 2009
1,926
5,656
USA
Your comment is thin, goes off track and does not respond to the substantial points I made. Better you delete this and make a standalone comment. Thanks.
Dude what? What do you mean my comment is thin? Please explain.
 
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jaytv111

macrumors 6502
Oct 25, 2007
370
159
Sorry if this is already specified somewhere - I have not found a clear answer -

How is the charge applied to your account? Does it show as the full amount at purchase but payment is separated with a minimum (1/12th) taken from your monthly payment with the rest of hte payment going to the interest bearing balance? Or, do they apply 1/12th of the total due as a separate charge each month?

If the latter, this is really not that good of a deal. In order to better manage my account, I would rather have the full balance known and I can pay forward. If I can or want to pay off in 6 months vs 12, I would need hte full amount on my card from day 1.

My understanding from using Amex with payment plans is you must pay the price divided by 12 at minimum (if it’s 12 months, if 18 months then divide by 18, etc), and I’m sure the money preferentially goes to your payment plans first then moves to the other items on the balance (probably also goes to the bare minimum amount first, which is usually $25, to avoid late fees). If you don’t cover the payment plan in any given month then I think the payment plan becomes null and void and you have to pay the full amount the next month, so don’t try to lowball the payment plan one month thinking it’ll be okay as long as you pay it some other month, I believe it’s considered a breach of contract or something like that since you agree to the payment plan and you therefore agree to pay the amount specified each month.

On the other side, you may pay it off early with no fees or anything (I paid a plan early and had no fee or anything). You just take the normal balance and add how much you want to add to pay off the plan.

Basically the full price is put onto your account because technically you’re borrowing that amount so it’s taken against your credit limit, but you only owe each month the adjusted balance.
 
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konqerror

macrumors 68020
Dec 31, 2013
2,298
3,692
FICO is not used in the Apple Card credit approval process. FICO is a proprietary product/formula exclusively from the Fair Isaac Corporation.

Did you actually read the link you posted?

Goldman Sachs uses TransUnion and other credit bureaus to evaluate your Apple Card application. If your credit score is low (for example, if your FICO9 score is lower than 600)(4), Goldman Sachs might not be able to approve your Apple Card application.


(4) Number provided for illustrative purposes. A range of FICO scores might be considered by Goldman Sachs in conjunction with other factors in making credit decisions.
 
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Shirasaki

macrumors G4
May 16, 2015
10,280
4,104
This just reinforces the idea that Apple products and services are simply becoming subscriptions for their early adopters and best customers.

Couple this with their aggressive trade-in program currently in place and that becomes really clear

Win-win here. Good for consumers and good for Apple
End of era of ever “owning a device”.
When do we start subscribing basic food supply service? /s
 
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