Apple upgrade program vs Verizon Device Payment

[Hitch08]

Switching the family from ATT to Verizon and need to get two new phones. I can either go through Apple or Verizon. I found a comparison on Apple's store site, but I'm wondering if anyone has any thoughts that I should really go one way or another.

Any thoughts/suggestions/comments would be greatly appreciated.

Thanks!

 

[Apple_Robert]

You will save money going through Verizon. You won't have a hard credit pull every time you want to upgrade, as you will with Citizen One (Apple Program). With Verizon, you can pay off your phone at any time. With Apple upgrade program, it has to be at least 6 months.

 

[Hitch08]

Thanks!

 

[OriginalAppleGuy]

I disagree with BasicGreatGuy. The only way you can save money by going with Verizon is if you don't get AppleCare. Both programs are 0% interest, but the IUP includes AppleCare in the financed cost. Quite frankly, IMO, AppleCare should be a requirement as it's the cheapest insurance option out there.

The argument against going with a carrier finance plan like Verizon is if you want to upgrade after a year, you HAVE to stay with Verizon. With the IUP, you can go with any carrier you want at any time. Including during the finance period.

The only stipulation in the terms and conditions of the IUP referencing 6 months is the ability to upgrade beginning at 6 months, not 1 year, if at the time you make the equivalent of 6 more months to equal 12 months of payments. In a way, this can be an advantage for the IUP in that if you want a new phone after 6 months, you have the flexibility to do so. I haven't seen anything stating a penalty if you decide to pay your loan off early. Given that it's a 0% interest loan, not quite sure what they would get out of charging you one.

As for the credit hits, nothing says Verizon doesn't conduct periodic credit reviews and won't do so if you want to upgrade your phone. In fact, if you read many of your credit agreements, most all of them will say they have the right to periodically review your credit for one reason or another. I'll also say that if a credit check for $1000 or less will affect your credit rating, you have other more pressing issues to be concerned about than financing a phone.

Edit - if you are currently with AT&T and have two phones in the IUP, you don't have to get new phones. Apple has a program to replace your AT&T phone with one that will work on Verizon or Sprint. A thread is active on the forums addressing this and should be easy to find. It's a new program that has some snags but word is getting out.

 

[Septembersrain]

I personally would choose Verizon because their insurance can cover theft. Applecare + does not cover theft or loss. So to me it's very incomplete. Also the paying it off anytime is an option, plus the current Verizon version is the Qualcomm version anyways. They also come unlocked due to the FCC ruling, so you'll be getting the same quality device as you'd get with Apples IUP.

 

[balticgreen]

As for the credit hits, nothing says Verizon doesn't conduct periodic credit reviews and won't do so if you want to upgrade your phone. In fact, if you read many of your credit agreements, most all of them will say they have the right to periodically review your credit for one reason or another. I'll also say that if a credit check for $1000 or less will affect your credit rating, you have other more pressing issues to be concerned about than financing a phone.

All of your creditors reserve the right to check your credit for account review purposes, but all credit checks for account review purposes are always soft pulls that never affect your credit score. Only hard pulls (which happen when you apply for new credit) have the potential to lower your credit score, and how much it affects your score depends on many factors.

However, the value that you're financing is not one of those factors. When you apply for credit, the creditor requests your credit report, the bureau sends it to them, then the creditor makes its own decision about whether you are creditworthy for whatever credit you are trying to obtain. The bureaus only know that XYZ creditor pulled your report on a specific date. They do not know or care how much you were attempting to borrow so whether it was for a sub-$1000 phone or for a million dollar house, the amount plays no role in whether it affects your credit rating or how much it affects your credit rating.

 

[appygirl82]

I disagree with BasicGreatGuy. The only way you can save money by going with Verizon is if you don't get AppleCare. Both programs are 0% interest, but the IUP includes AppleCare in the financed cost. Quite frankly, IMO, AppleCare should be a requirement as it's the cheapest insurance option out there.

The argument against going with a carrier finance plan like Verizon is if you want to upgrade after a year, you HAVE to stay with Verizon. With the IUP, you can go with any carrier you want at any time. Including during the finance period.

The only stipulation in the terms and conditions of the IUP referencing 6 months is the ability to upgrade beginning at 6 months, not 1 year, if at the time you make the equivalent of 6 more months to equal 12 months of payments. In a way, this can be an advantage for the IUP in that if you want a new phone after 6 months, you have the flexibility to do so. I haven't seen anything stating a penalty if you decide to pay your loan off early. Given that it's a 0% interest loan, not quite sure what they would get out of charging you one.

As for the credit hits, nothing says Verizon doesn't conduct periodic credit reviews and won't do so if you want to upgrade your phone. In fact, if you read many of your credit agreements, most all of them will say they have the right to periodically review your credit for one reason or another. I'll also say that if a credit check for $1000 or less will affect your credit rating, you have other more pressing issues to be concerned about than financing a phone.

Edit - if you are currently with AT&T and have two phones in the IUP, you don't have to get new phones. Apple has a program to replace your AT&T phone with one that will work on Verizon or Sprint. A thread is active on the forums addressing this and should be easy to find. It's a new program that has some snags but word is getting out.

I also agree that the IUP is better. Freedom to choose carrier and AppleCare. However, even though there is a fix for the switch from ATT to VZW, it does involve things one should consider. With 2 phones on the IUP (like myself) it's going to cause some hard credit pulls. (Not sure if it'd be one or two?) and VZW will also do a hard credit pull. (Despite them saying it would be a soft pull). Granted in the long term, this isn't a huge effect on ones credit...for some it may not be ideal. For me, I'm on the middle of buying a home. The fact that Apple advertised the easy availability to switch carriers we now know is false. Yes you can, but it'll cost ya. For me, it makes me mad. Their "fix" isn't going by to work (and likely some others). It does suck.

 

[bufffilm]

I personally would choose Verizon because their insurance can cover theft. Applecare + does not cover theft or loss. So to me it's very incomplete. Also the paying it off anytime is an option, plus the current Verizon version is the Qualcomm version anyways. They also come unlocked due to the FCC ruling, so you'll be getting the same quality device as you'd get with Apples IUP.

If you want/need replacement of device if lost or stolen, then insurance option over AppleCare is needed as you stated.

Just be aware that deductible applies and over time, the monthly charge does add up to sizable amount. Whereas the AppleCare, Squaretrade, etc does not.

Always know what you are signing up for.

 

[Brandonjr36]

If you want AppleCare and still want to pay through Verizon. You can go through bestbuy and they offer AppleCare for $7.99 a month I think or a year price.

 

[Mlrollin91]

You will save money going through Verizon. You won't have a hard credit pull every time you want to upgrade, as you will with Citizen One (Apple Program). With Verizon, you can pay off your phone at any time. With Apple upgrade program, it has to be at least 6 months.

Credit pull was for the first year, I did not receive a hard pull for the second year (same with many, many other members here).

Second, there is nothing that states you cannot pay off your phone whenever you want with IUP. You can pay it off the same month you get it if you want. Not sure where you are getting this from.

Third, Verizon is more expensive because you have upgrade/line activation fees. That does not exist on the IUP.

 

[lockerc18]

I've had AppleCare on every Apple device I've ever owned (5 iPhones, 2 iPads, 3 Macs) and have never used it. Others in the family have had the same experience. Seems like a waste of money. Sure, until you need it. I get that. But I never have.

 

[puma1552]

One thing with Verizon device payment, is that if you want to pay it off early, you have to pay the full balance - you can't just give them $50 this month, $100 next month, etc. - it's either the minimum payment or the full balance, no inbetween.

 

[dslrjunky]

I was on the same dillema before choosing verizon, for me it was no brainer as vzw was running a promotion that gets me the iPhone 7+ 256gb for $24/mo x24. I do have to buy the applecare+ though separately.

 

[OriginalAppleGuy]

I've had AppleCare on every Apple device I've ever owned (5 iPhones, 2 iPads, 3 Macs) and have never used it. Others in the family have had the same experience. Seems like a waste of money. Sure, until you need it. I get that. But I never have.

Well, that's the life of insurance needs. I've used AppleCare on maybe my 4S when the button stopped responding. Easiest swap I've had. I've also had it on my MacBook Pro late 2008 - needed a motherboard replacement that would have cost me about $800 at the time. The thing about insurance is you can't go without, have a need for it, and buy it then. It's all about risk management.
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For me, it makes me mad. Their "fix" isn't going by to work (and likely some others). It does suck.

Understand that. It's too bad you are in the situation you are in. Hope the home buying goes well, though! That's quite a feat and very satisfying!