Citigroup Reportedly Passed on Apple Card Due to Profitability Concerns

[LordVic]

So when you say "zero fee", do you also mean no late fees, no foreign transaction fees?

Yes.

My Credit Card that I use, does not charge either of those. Foreign transactions are done at a set percentage based on the days rates and there are no late fees for late payments (though there's still interest)

There are quite literally thousands if not dozen of thousands of Credit Cards available out there from dozens if not hundreds of different companies.

I work for a bank, we offer something like 10 different cards, that range from all sorts of offerings and points rewards. some free with no fees. some with fees but higher rewards, some with specific rewards (like discounts on gas), or some with just plain cash back rewards.

The only really unique aspect of the Apple credit card is that it's Apple, a tech company tying their physical devices in with the card. Which is really good and cool. But the card's features itself is not unique and is fairly run of the mill credit card.

 

[eltoslightfoot]

Yes.

My Credit Card that I use, does not charge either of those. Foreign transactions are done at a set percentage based on the days rates and there are no late fees for late payments (though there's still interest)

There are quite literally thousands if not dozen of thousands of Credit Cards available out there from dozens if not hundreds of different companies.

I work for a bank, we offer something like 10 different cards, that range from all sorts of offerings and points rewards. some free with no fees. some with fees but higher rewards, some with specific rewards (like discounts on gas), or some with just plain cash back rewards.

The only really unique aspect of the Apple credit card is that it's Apple, a tech company tying their physical devices in with the card. Which is really good and cool. But the card's features itself is not unique and is fairly run of the mill credit card.

Exactly, with the meh interest rate, I am really trying to see the advantage of tying myself to my tech vendor for a credit card. What is the payoff for me? I can already use Apple Pay, and have a card backup in my wallet.

It would be like having my cellular company for my credit card. What could go wrong? I don't understand.

 

[Baymowe335]

Exactly, with the meh interest rate, I am really trying to see the advantage of tying myself to my tech vendor for a credit card. What is the payoff for me? I can already use Apple Pay, and have a card backup in my wallet.

It would be like having my cellular company for my credit card. What could go wrong? I don't understand.

Inteeest rate should be irrelevant. All interest rates are high and no one should pay them.

 

[eltoslightfoot]

Inteeest rate should be irrelevant. All interest rates are high and no one should pay them.

Okay? I still am going to choose the card with the best irrelevant interest rate. Currently I have zero balance, and have built up an emergency fund. I also haven't always been this fortunate. I still don't understand wanting a worse rate as opposed to a better rate.

 

[k1121j]

Plus Citi has the DoubleCash, which is basically a better version of this.
[doublepost=1559054761][/doublepost]

Doubtful. I cannot think of a single credit card that requires 800+. Amex Platinum and CSR (two of the most prestigious cards) don't have those requirements.

wouldn't call them prestigious cards amex has been trying to get me to hop to the platinum for a while now and for 500 bucks a year I'm literally paying for the benefit in advance. I look at those cards as an insult to my intelligence to be frank.
[doublepost=1559222921][/doublepost]

Customers means Shareholders
[doublepost=1559083768][/doublepost]

Apple said in the launch event that no one including Master, Goldman and Apple will have access to the transactions.

yes apple is trying to monetize you as a customer as are all other companies ?

 

[mattopotamus]

wouldn't call them prestigious cards amex has been trying to get me to hop to the platinum for a while now and for 500 bucks a year I'm literally paying for the benefit in advance. I look at those cards as an insult to my intelligence to be frank.
[doublepost=1559222921][/doublepost]
yes apple is trying to monetize you as a customer as are all other companies ?

you can buy airline gift cards to trigger the $200 credit, so that drops the fee to $300. Global entry covered every 5 years, now down to $280 (averaged out over 5 years). Free select priority pass, which I value well over $280 per year if you travel on a regular basis. Delta lounge access if flying delta (only airline I personally use). 5th night free for hotels, gold status at certain hotels and rental car locations. I literally save thousands with it.

Anyone who travels will tell you the annual fees are easily covered. Not to mention the ridiculous signup bonuses you can get that can approach $1000 in value. Plus the service is unreal. I damaged my card at 6pm one night and by 10am the following day I had the new card.

 

[rjohnstone]

Inteeest rate should be irrelevant. All interest rates are high and no one should pay them.

Interest rates are how credit card companies are able to stay in business and lend you money. A credit card is essentially a personal line of credit (loan).
Don't want to pay interest? Get a no fee card and pay it off each month.
Most people simply cannot do that.
[doublepost=1559229375][/doublepost]

you can buy airline gift cards to trigger the $200 credit, so that drops the fee to $300. Global entry covered every 5 years, now down to $280 (averaged out over 5 years). Free select priority pass, which I value well over $280 per year if you travel on a regular basis. Delta lounge access if flying delta (only airline I personally use). 5th night free for hotels, gold status at certain hotels and rental car locations. I literally save thousands with it.

Anyone who travels will tell you the annual fees are easily covered. Not to mention the ridiculous signup bonuses you can get that can approach $1000 in value. Plus the service is unreal. I damaged my card at 6pm one night and by 10am the following day I had the new card.

This.

Premium cards are for people whos spending habits can take full advantage of the offers and services.
The savings/deals offered with an Amex Platinum card can save thousands of dollars each year. This makes the fee a wash and largely irrelevant.

 

[Baymowe335]

Okay? I still am going to choose the card with the best irrelevant interest rate. Currently I have zero balance, and have built up an emergency fund. I also haven't always been this fortunate. I still don't understand wanting a worse rate as opposed to a better rate.

Why? Interest rate doesn't matter if you're not paying interest, so it's an irrelevant factor.

If you're paying interest, you shouldn't have a credit card. End of discussion.
[doublepost=1559232999][/doublepost]

Interest rates are how credit card companies are able to stay in business and lend you money. A credit card is essentially a personal line of credit (loan).
Don't want to pay interest? Get a no fee card and pay it off each month.
Most people simply cannot do that.
[doublepost=1559229375][/doublepost]

This.

Premium cards are for people whos spending habits can take full advantage of the offers and services.
The savings/deals offered with an Amex Platinum card can save thousands of dollars each year. This makes the fee a wash and largely irrelevant.

Most people shouldn't have a credit card.

I have a Reserve card and pay a well worth it $450 annual fee. Fees aren't the issue because cards with fees have benefits, as you pointed out. Interest is the thing you should avoid at all costs.

You should be paying off your entire credit balance in full each month without exception or cut up your card.

 

[eltoslightfoot]

Why? Interest rate doesn't matter if you're not paying interest, so it's an irrelevant factor.

If you're paying interest, you shouldn't have a credit card. End of discussion.
[doublepost=1559232999][/doublepost]
Most people shouldn't have a credit card.

I have a Reserve card and pay a well worth it $450 annual fee. Fees aren't the issue because cards with fees have benefits, as you pointed out. Interest is the thing you should avoid at all costs.

You should be paying off your entire credit balance in full each month without exception or cut up your card.

HAHAHA! This is incredible. I feel the empathy from you all the way over here. Listen, you don't need my econ background to understand this.

Let's set aside the fact that bad stuff happens and suddenly you may need to borrow beyond your savings. Let's set aside what should be and look at this simple fact.

Why have a higher interest rate EVEN IF YOU NEVER CARRY A BALANCE? If you really don't care, get the highest one you can. You clearly don't "operate at the margin." Even if you never need that margin, why make it bigger?

Now factor that no matter how hard you plan, life can simply give you the shaft one day and you will be glad you have a lower interest rate. But you do you. I will definitely be operating at the margin, myself.

 

[Baymowe335]

HAHAHA! This is incredible. I feel the empathy from you all the way over here. Listen, you don't need my econ background to understand this.

Let's set aside the fact that bad stuff happens and suddenly you may need to borrow beyond your savings. Let's set aside what should be and look at this simple fact.

Why have a higher interest rate EVEN IF YOU NEVER CARRY A BALANCE? If you really don't care, get the highest one you can. You clearly don't "operate at the margin." Even if you never need that margin, why make it bigger?

Now factor that no matter how hard you plan, life can simply give you the shaft one day and you will be glad you have a lower interest rate. But you do you. I will definitely be operating at the margin, myself.

You are not getting it. If you have hard times, the only thing worse than charging it on a credit card is a payday loan or a loan from a loan shark.

Credit cards are poison in the wrong hands and your "hard times" plan SHOULD NEVER include charging it to a card, EVEN IF IT IS A LOWER RATE.

There are legal limits to interest rates on credit cards too. But again, interest rate on a credit card should be a NON factor because you should NEVER charge things you can't pay for at the end of the cycle. PERIOD.

 

[eltoslightfoot]

You are not getting it. If you have hard times, the only thing worse than charging it on a credit card is a payday loan or a loan from a loan shark.

Credit cards are poison in the wrong hands and your "hard times" plan SHOULD NEVER include charging it to a card, EVEN IF IT IS A LOWER RATE.

There are legal limits to interest rates on credit cards too. But again, interest rate on a credit card should be a NON factor because you should NEVER charge things you can't pay for at the end of the cycle. PERIOD.

It's clear that you didn't read my post. Ok.

 

[Baymowe335]

It's clear that you didn't read my post. Ok.

I read it fine. You're arguing interest rate matters on a card and I'm telling you it will never matter with my strategy. You simply need to look at the other benefits of the card in question to make a decision.

If the rate doesn't matter, I'm not going to purposely try to find a card with a high rate, just like I'm not going to find a card with a low rate. By irrelevant I really do mean irrelevant.

 

[eltoslightfoot]

I read it fine. You're arguing interest rate matters on a card and I'm telling you it will never matter with my strategy. You simply need to look at the other benefits of the card in question to make a decision.

If the rate doesn't matter, I'm not going to purposely try to find a card with a high rate, just like I'm not going to find a card with a low rate. By irrelevant I really do mean irrelevant.

See, now that is an actual argument. I don't agree, but at least we are getting somewhere. I still think that one would be smart to get the lowest rate on everything--whether you need it or not. You never know what can happen. I understand that for you credit cards represent something utterly anathema. That is fine. What I am saying is that things happen.

Again, I don't carry balances, and I don't think that is smart. And now that I mention it, there are cards I have that are terrible in their interest rate because I could get a zero percent interest card with my windows or couch as long as I pay it off in time. Since Time Value of Money means that a dollar today is worth more than tomorrow, I happily do them. So I guess I just didn't understand you point.

Are you trying to say that you look at benefits and then take a higher interest rate card because of the travel or cash back benefits? I could see that. I just didn't understand why someone would not care about rate at all. I don't ever plan on needing my low rate card, but stuff happens.

 

[k1121j]

you can buy airline gift cards to trigger the $200 credit, so that drops the fee to $300. Global entry covered every 5 years, now down to $280 (averaged out over 5 years). Free select priority pass, which I value well over $280 per year if you travel on a regular basis. Delta lounge access if flying delta (only airline I personally use). 5th night free for hotels, gold status at certain hotels and rental car locations. I literally save thousands with it.

Anyone who travels will tell you the annual fees are easily covered. Not to mention the ridiculous signup bonuses you can get that can approach $1000 in value. Plus the service is unreal. I damaged my card at 6pm one night and by 10am the following day I had the new card.

Completely disagree I travel what I consider to be a lot. In the last three years from the east coast been to Hawaii 4 times, bora bora, Russia, Dubai, Iceland later this year costa rica. I'm well experienced I don't typicaly stay at hotels I rent houses or condos (much cheaper)….. lastly your calculating the saving based on years only accounting for the first years fee??? Lastly I don't get cards for the sign on bonus I don't fall for gimics I look at them as an added bonus not a reason for choosing a card. sound like you have good credit and money to waste. FYI not all good cards charge you to have benefits

 

[mattopotamus]

Completely disagree I travel what I consider to be a lot. In the last three years from the east coast been to Hawaii 4 times, bora bora, Russia, Dubai, Iceland later this year costa rica. I'm well experienced I don't typicaly stay at hotels I rent houses or condos (much cheaper)….. lastly your calculating the saving based on years only accounting for the first years fee??? Lastly I don't get cards for the sign on bonus I don't fall for gimics I look at them as an added bonus not a reason for choosing a card. sound like you have good credit and money to waste. FYI not all good cards charge you to have benefits

Everything outside of the sign up bonus was a yearly benefit.

If you don’t see the value that’s on you. There is a reason people like The Points Guy exist. It’s massive savings if you travel and use the benefits. You are losing money, and if you don’t see that’s it’s ok. I figure I realistically save (after the annual fee) anywhere from $900-$2k per year depending on the length of my stay and amount I drink/eat at a lounge (for free Since the annual fee is in most calculations ).

 

[PastaPrimav]

Spoken like someone who never used an AMEX.
Lets be honest the rewards Apple card is meh at best.

Nope. Thanks for proving the point 1000 times over.