This is basically Affirm's business model -- great to see hre. It's going to be very easy/convenient for customers. Great move Apple.
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Apple Using In-House Lending for New Apple Pay Later Feature
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I agree. That statement was absurdly simplistic. It "sounds clever" but that's it.
Having been a user of Klarna to split payments up with no interest is appealing especially during holidays for me at least. Does not mess with my credit score and paid it off before last installment payment no penalty. I actually just did this when buying the AirPods Max. Made the $470ish price tag easier to digest haha.
Every statement like that is bogus.
- "Don't judge a book by its cover." Everyone who reads does that
- "Don't count your chickens before they hatch." A farmer who doesn't do that will starve/go bankrupt
Ok good I was wondering of a use case where this new feature would be a plus. But for the life of me can't see any other way otherwise as to how spreading payments out to 6 weeks can be a good thing for any one with the exception of Apple themselves.
Apple Financing LLC will make Apple more money than most of their products. In a few years, they will primarily be a bank that also sells hardware devices. Mark my words.
This is probably the safest form of credit, both for the lender (Apple) and the consumer. Risk is capped at a pretty low amount and there’s no interest charged. The only downside is credit bureau reporting is one-way, meaning they will only report defaults, not positive payment history. Even then, if you pay your installments on time, it’s not a bad way to make a purchase more attainable. Just don’t overdo it. Most if not all these services have a credit ceiling so you don’t take out too many lines and once you miss a payment they cut you off entirely.
Is a hard credit check done every time you attempt to do a split? That could get bad pretty quick. (Or maybe it doesn't work this way in the US?)
I’m sure most of the people criticizing this have a credit card they use themselves. And I’m sure a few of them have even purchased an Apple product with an installment plan in the past. Yes, that includes the iPhone upgrade program.
I wouldn’t use this myself. But let’s not be so judgmental of people that do.
I wouldn’t use this myself. But let’s not be so judgmental of people that do.
Apple Online Bank, I remember someone on here shutting me down on this out of pocket. However, I can see this happening with each passing day, as they get more descriptive with their plans.
Since Apple Pay Cash is not in Canada yet, I doubt this will be available outside of the US.
Apple basically is acting as the crediting bank here, which would require a full set of financial regulatory approval process in most sovereign nations.
Apple basically is acting as the crediting bank here, which would require a full set of financial regulatory approval process in most sovereign nations.
Another way to put the consumer in more debt, thinking they can just finance something over subsidized weekly/monthly payments.
Either you have the funds or you don’t. I pay all my ‘tech’ devices in cash.
Either you have the funds or you don’t. I pay all my ‘tech’ devices in cash.
I don’t think you can use this for gas, and that would probably be a really bad idea. That could snowball out of hand quickly.
When the pay later interest free technique first began, it started with 6 months. When the companies found that they made a lot of money and increased shareholder value, they slowly increased the time. Today it has ballooned out to 60 months, that 5 years to pay it off interest free. Apple, realising there is alot of money to be made, along with subscriptions, has jumped on the buy-now-pay-later bandwagon. These corporations know that they make the extra money from people who can least afford it.
This is really not any better than using a typical credit or charge card and paying the balance in full when it is due some 4-7 weeks later. With Apple Pay Later, money is leaving your account on day one and every two weeks thereafter. I guess it’s a good set of training wheels for those who don’t have the money management gene.
I do the same. I have an account allocated for my yearly Apple toys. And if I use it up before the end of the year, too bad for me. lol
I’m waiting for them to get into the extended home warranty business.
What I don't understand is how is this different/better from Apple Card?
When you pay with Apple Card you don't have to pay for that purchase until the following month. This can be from four to close to eight weeks away, depending on when in the month you made the purchase. This Apple Pay Later thing doesn't make any sense because why not just use your Apple Card and pay down the balance as you're able?
Unless I'm missing something, which I must be.
When you pay with Apple Card you don't have to pay for that purchase until the following month. This can be from four to close to eight weeks away, depending on when in the month you made the purchase. This Apple Pay Later thing doesn't make any sense because why not just use your Apple Card and pay down the balance as you're able?
Unless I'm missing something, which I must be.
Using your credit responsibly always boosts your credit score. As long as you are keeping your total credit usage for the card under 30% when it gets reported to the 3 bureaus, your score will be positively affected. 10% is ideal. Never ever go over 30%. It's a game the credit bureaus play and it's annoying.