Apple Watch Now Eligible for Apple Card Monthly Installments

[ChrisBos]

That second part is news to me, thanks for the correction. I have a friend that bought an iPhone with this deal and said they couldn’t see the remaining balance to be paid after paying off the entire balance of the card. As in, it would show how much is owed on the iPhone plan, but wouldn’t allow them to make an additional payment (they made it sound as if it was all or nothing — pay off full iPhone balance or just your monthly payment). Either they weren’t reading it right or this has been changed/updated (for the better!).

This makes the deal that much better for those in the market for a new Watch!

Happy to clarify! To be fair, my installments are for a Mac (and technically AirPods the way they do the BTS promo, but paid those of early). Maybe it's different for iPhone?

You also have to know where to look, and the way the UI is set up it's easy to overlook. You have to open the card in Wallet, tap the ... in the top right corner, tap the installments section, tap the device, then tap Pay Early. My MBP will let me pay additional amounts in $25 increments. Seems simple, but it's kind of like when you open settings on an iPhone and know exactly what you're looking for but lose it in the list of stuff in there 😂

 

[PlainBelliedSneetch]

Happy to clarify! To be fair, my installments are for a Mac (and technically AirPods the way they do the BTS promo, but paid those of early). Maybe it's different for iPhone?

You also have to know where to look, and the way the UI is set up it's easy to overlook. You have to open the card in Wallet, tap the ... in the top right corner, tap the installments section, tap the device, then tap Pay Early. My MBP will let me pay additional amounts in $25 increments. Seems simple, but it's kind of like when you open settings on an iPhone and know exactly what you're looking for but lose it in the list of stuff in there 😂

I always pay the full balance each month on my credit cards. So, with the installment plan, if you pay the installment payment plus the balance for other purchases do you still get the 30 day grace period on interest for those purchases?

 

[appleguy123]

What do you mean it won’t get rid of the loan?

It's a credit card. So the line of credit revolves unless you cancel the card.

 

[TonyC28]

It's a credit card. So the line of credit revolves unless you cancel the card.

But it’s not regarded as a loan, is it?

 

[ZipZap]

I used my existing card. I was changed the first month and nothing more. They will charge the card each month. I did look to see if my spending limit was reduced by the full amount but what would be the point as its not guarantee of anything?
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But it’s not regarded as a loan, is it?

As best I can tell. No.

 

[ZipZap]

I always pay the full balance each month on my credit cards. So, with the installment plan, if you pay the installment payment plus the balance for other purchases do you still get the 30 day grace period on interest for those purchases?

Yes

 

[44267547]

In a down-turned economy, I see quite a few consumers taking advantage of the installed payments. As long as the card holder is timely and responsible with their payments, I see this as a direct advantage for Apple in every way possible.

 

[Greyland]

I am a veteran. When signing in with my ID.me account and choosing to purchase two Apple Watch series 6 models I received the 10% military discount, but no choice for monthly payments.

 

[Dizzy714]

When should we expect Costco to supply the Series 6? And we should likely not expect the product RED version there, correct?

 

[ChrisBos]

I always pay the full balance each month on my credit cards. So, with the installment plan, if you pay the installment payment plus the balance for other purchases do you still get the 30 day grace period on interest for those purchases?

Yes. The installment payments actually become part of your "regular" balance each month, so there's technically no distinction between making regular payments on your installment(s) and purchases. The best way to think of it is almost like two cards that share a credit limit:

If you make an installment plan purchase(s) it will count against your available credit per your card limit, but that balance sits in a separate "bucket" that accrues no interest.

On the first of the month (new billing cycle), the amount of your monthly installment payment(s) will be moved from the 0% interest installment balance "bucket" to your regular, interest accruing card balance. That, plus any other charges from the previous month, are now your minimum amount due. For all intents and purposes, at this point there is no difference between that installment payment and any other charges; it's all just your card balance. As long as you pay this minimum payment by the end of the month, they accrue no interest. If you only make a partial payment, then interest gets added on the next month.

Side note: If you want to make extra payments on an installment, your regular card balance needs to be at $0, i.e. you'd have to pay off any Apple Pay or card swipe charges early first. For example: If you pay your balance down to $0 on 10/1, then make a $100 purchase with your card on 10/5 (normally due 11/30), and want to pay an extra $100 on your installment balance on 10/10, you'd have to pay $200 on 10/10 to do so. Even if you try to make the payment through the installments menu, it would apply any payment up to your current balance amount to that first, and anything over that amount to your installment.

 

[mashdots]

Why do they offer 24 month financing for an Apple Watch but not a MacBook that costs like 3 times more??

what's also really interesting is that the ipad air is less than the watch but has 12 month financing.

 

[iVeritas]

Ehh, sorta yes and sorta no. If Apple wants to let me pay it off at 0% I’d rather hold old on to my cash for now.

my thoughts exactly. if i had the privilege of not paying a huge sum of money upfront at no cost in the long run, i will always take it. passing up on that would be like paying off a house in cash despite being offered a 30-year 0% interest mortgage.

 

[pubb]

If you have to finance a $400 watch, you should not be buying it. Full stop.

But you save $.12

 

[ChrisBos]

If you have to finance a $400 watch, you should not be buying it. Full stop.

Is it ok if I just want to finance a $400 watch?

 

[PickUrPoison]

It's kinda buried in the wallet app, but like the person you quoted said you can pay the balance in full at any time as long as your credit card balance is zero. Eg, if you have a balance of $200 on your credit card you cannot pay anything extra towards the installment payment until you pay off the $200.

True, and that’s how you want it to work... paying off the amount subject to interest before paying down the amount financed at 0%.

 

[Adelphos33]

I just bought an Apple Watch using the installment payments and looked at how it impacted by Apple Card account... A couple of notes

1) Apple reduces the available credit on the card by the amount you finance - it doesn’t reduce the credit limit nor does it add the balance of the financed amount to your outstanding balance.

What does this mean?

2) Using installments does not appear to impact your total balance (outside of the taxes and any other charges you have to pay up front) or your utilization - Apple reports your balance (including what you charged outside of the installments) and your credit limit - I don’t believe they report available credit to credit agencies

If I understand this correctly, this is definitely a superior way to buy Apple products - not only do you get 0% APR, you also do it in a way that doesn’t impact your borrowing levels or credit score...

 

[ChrisBos]

...Using installments does not appear to impact your total balance (outside of the taxes and any other charges you have to pay up front) or your utilization - Apple reports your balance (including what you charged outside of the installments) and your credit limit - I don’t believe they report available credit to credit agencies

If I understand this correctly, this is definitely a superior way to buy Apple products - not only do you get 0% APR, you also do it in a way that doesn’t impact your borrowing levels or credit score...

Your installment balance does get reported as part of your utilization, and does impact your credit score just like any other card balance. Source: My individual Apple Card utilization and my overall credit utilization are currently reflecting my installment balance, on both my Transunion and Equifax reports. As a side note, they don't have to report available credit; by reporting your credit limit and balance, available credit is a given and factored into utilization %.

In your case, if you just made the purchase, it probably just hasn't been reported yet. I know GS was kind of weird about reporting at first, and the balance from the MBP I bought in July didn't show up on my reports right away either.

But that all said, it's still a great way to purchase Apple products if you don't want to drop the full amount up front. It's just important to understand that applying for a new Apple Card and/or carrying an installment balance whether on a new or existing card will indeed impact your credit score.

 

[4sallypat]

I wish there was an option to get 12 months instead of 24 months for all Apple products....

My current iPhone 11 is being financed thru Citizen's Loan for 24 months at 0% but I may not want to wait....

 

[Greyland]

U.S. Apple Card holders to pay for the Apple Watch over time with interest-free payments.

This is big news if true.

Except it isn't true if you apply any kind of discount.

I talked to an Apple Watch salesman over the phone. He tried his employee discount, and couldn't get the interest-free payments. I tried with my military discount and my Apple Card and the only option is to pay in full.