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Apple's IUP: Another Hard Hit Credit Inquiry??

http://www.apple.com/legal/sales-support/iphoneupgrade_us/

Credit check required. The iPhone Upgrade Program is available to qualified end-user customers only.

Termination of Original Installment Loan After Exercising Upgrade Option. Upon successfully exercising your Upgrade Option, entering into a New Installment Loan, and completing your First Installment Payment on your New Installment Loan with Bank as outlined above, Apple will pay any remaining balance due under your original Installment Loan on your behalf to the Bank, and Bank will consider your original Installment Loan to be paid in full. Subsequent monthly payments will be made under the terms of your New Installment Loan, subject to the conditions of “Return of New, Upgraded iPhone After Exercising Upgrade Option,” as set forth below.

Exercising your Upgrade Option. To exercise your Upgrade Option you must:
  • Trade in your Financed iPhone in good physical and operational condition, as directed by Apple; and
  • Enroll in a new iPhone Upgrade Program which includes applying for and entering into a new 24-month 0% APR installment loan (“New Installment Loan”) with Bank.

For questions about your Installment Loan or your application, please contact Citizens One at 1-888-201-6306

====================================

This is based on the IUP details page in the order where they make the most sense. It doesn't state that they will ride on your existing credit check, and typically a credit check is good for 90-180 days depending on the lender. What scares me is that it says

  • "Enroll in a new iPhone Upgrade Program which includes applying for and entering into a new 24-month 0% APR installment loan (“New Installment Loan”) with Bank"

This is concerning as this is listed above:

  • Credit check required. The iPhone Upgrade Program is available to qualified end-user customers only.

So does that mean that by upgrading you are setting up a new loan? Does Citizens One have a different algorithm for determining people on the IUP? Does Citizens One do a credit check for only the first enrollment and ride on your performance with them after that or what. It doesn't do a good job of explaining it, probably need to call the number and find out the fine details on this loan, if it's a credit check every time you upgrade, it would be better just to buy the phone outright and try to get your money back on the resale after 1 year.
 
mildocjr said:
http://www.apple.com/legal/sales-support/iphoneupgrade_us/

Credit check required. The iPhone Upgrade Program is available to qualified end-user customers only.


So does that mean that by upgrading you are setting up a new loan? Does Citizens One have a different algorithm for determining people on the IUP? Does Citizens One do a credit check for only the first enrollment and ride on your performance with them after that or what. It doesn't do a good job of explaining it, probably need to call the number and find out the fine details on this loan, if it's a credit check every time you upgrade, it would be better just to buy the phone outright and try to get your money back on the resale after 1 year.
Click to expand...

Yes all signs point to this being a brand new loan upon upgrading. They are terminating the old loan upon return of the previously financed phone so a new loan needs to be established.
 
mildocjr said:
When I said that question, it was more asking setting up a loan (with all the included deadlies of a new loan, e.g. credit check, paperwork, etc.)
Click to expand...

Yes I assume everything will be identical to last years set up process to include a new 24 month payment schedule, credit check and phone activation on one of the major carriers.
 
edlex said:
Yes I assume everything will be identical to last years set up process to include a new 24 month payment schedule, credit check and phone activation on one of the major carriers.
Click to expand...

I'm going to call them during lunch to get some details, if someone else has already got the details on what happens credit check wise during the upgrade let us all know.
 
Citizens One says its a new loan, so a new hard credit check. Your original loan is paid off by apple when you return the phone to them, and the original loan is closed. You then have the new one for the new phone.
 
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Lobwedgephil said:
Citizens One says its a new loan, so a new hard credit check. Your original loan is paid off by apple when you return the phone to them, and the original loan is closed. You then have the new one for the new phone.
Click to expand...

Seems like all it's good for is racking up a bunch of good standing accounts on your credit score (if you do it right). Outside of that, not much of a benefit if you end up with an "iPhone + AppleCare+ + hard inquiry for life" plan
[doublepost=1473354506][/doublepost]Radio deleted their comment @edlex @mjb59463 @sjc83

Didn't understand that it might have been more cost effective that way unless you make it an annual job of yours to try and sell your old phone to offset the cost of the new phone.
[doublepost=1473357506][/doublepost]Well after going over my options I ended up calling Sprint, more on that below. I currently pay $210/mo on 3 devices (paid off, out of contract) with unlimited talk, text, and data. Went to the website and clicked optimize my plan, it showed me Unlimited Freedom (requires out of contract, no payments on phones, and E-Bill) for $130/mo that gives me what my current plan does plus it offers 5GB mobile hotspot (I'll never need). The cost of the plan + 2 iPhones on iPhone Forever (upgrade every year like AT&T Next or T-Mobile Jump) is $10-15 cheaper when all is said and done, including service fees and taxes. **upgrading the 6S Plus 64GB to the 7 128GB tier.**

If someone knows of a bill that's cheaper than $195, that works for my situation (3 phones, unlim data, 2 on upgrade plan) let me know.
 
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mildocjr said:
I'm going to call them during lunch to get some details, if someone else has already got the details on what happens credit check wise during the upgrade let us all know.
Click to expand...

I chatted with someone at Apple this morning, so take this all with a grain of salt.

I was told that it is a new loan and new inquiry, even if you're already on the program. Additionally, because I asked about getting a phone for both me and my wife, I was told it's a new loan for each phone, so two separate setups. Hopefully citizens bank is cool about it and will use the same credit check for both, but I don't have high hopes.

I'm a little surprised this isn't cleaner from a customer experience perspective. You'd think that once you've successfully established and paid 12 installments that you wouldn't need a new hard inquiry every year, and you'd think they'd let you combine accounts for spouses. If I went into a car dealership and bought two cars, they'd only run my credits once.

Oh well.
 
Bigserver1 said:
I chatted with someone at Apple this morning, so take this all with a grain of salt.

I was told that it is a new loan and new inquiry, even if you're already on the program. Additionally, because I asked about getting a phone for both me and my wife, I was told it's a new loan for each phone, so two separate setups. Hopefully citizens bank is cool about it and will use the same credit check for both, but I don't have high hopes.

I'm a little surprised this isn't cleaner from a customer experience perspective. You'd think that once you've successfully established and paid 12 installments that you wouldn't need a new hard inquiry every year, and you'd think they'd let you combine accounts for spouses. If I went into a car dealership and bought two cars, they'd only run my credits once.

Oh well.
Click to expand...

Yeah, credit checks for life. "Hey Sam, did you get that new house?... Nah, just got the latest iPhone"
 
mildocjr said:
Yeah, credit checks for life. "Hey Sam, did you get that new house?... Nah, just got the latest iPhone"
Click to expand...

It's a bit ridiculous. I'm fortunate in that I have a very high score, so an extra inquiry a year doesn't hurt me, but I hate not having as many options to take advantage of good CC sign up offers, etc.
 
Bigserver1 said:
I chatted with someone at Apple this morning, so take this all with a grain of salt.

I was told that it is a new loan and new inquiry, even if you're already on the program. Additionally, because I asked about getting a phone for both me and my wife, I was told it's a new loan for each phone, so two separate setups. Hopefully citizens bank is cool about it and will use the same credit check for both, but I don't have high hopes.

I'm a little surprised this isn't cleaner from a customer experience perspective. You'd think that once you've successfully established and paid 12 installments that you wouldn't need a new hard inquiry every year, and you'd think they'd let you combine accounts for spouses. If I went into a car dealership and bought two cars, they'd only run my credits once.

Oh well.
Click to expand...

So if you get two phones under the same name and SSN, your credit will be pulled twice? THAT's ridiculous. Most banks don't do that, but then again it's Citizens.
 
mjb59463 said:
So if you get two phones under the same name and SSN, your credit will be pulled twice? THAT's ridiculous. Most banks don't do that, but then again it's Citizens.
Click to expand...

I'm hoping the person at Apple meant two separate loans but they/can will combine applications/hard pulls. That being said, to your point, it's citizens. I don't have high hopes.
 
Bigserver1 said:
I'm hoping the person at Apple meant two separate loans but they/can will combine applications/hard pulls. That being said, to your point, it's citizens. I don't have high hopes.
Click to expand...

I had planned to get two phones on IUP as well, same as you. If its 2 hard pulls for this, I'll have to go through my carrier.
 
It's totally ridiculous that they need to do a hard pull at all (for an $800 item) and moronic that it is required every single year. I rather do AT&T Next and deal with getting customer service to waive the $40 activation fee. Plus I have device flexibility. Not to mention Citizens Bank customer service is a total disaster. Good luck calling them.
 
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My carrier is T-Mobile. I'm hesitant to order my devices through them seeing as how they completely bungled the 6 and 6s launches.

But if its really 2 hard pulls with Apple vs none with T-Mo, I'll deal with T-Mo.
 
The main problem is that this is the first renewal year for IUP. We'll all know a lot more in a few hours (new online enrollees) and a few days (new renewals). :)

Next year will be a piece of cake.
 
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