Goldman Sachs Issued $10 Billion in Credit Lines for Apple Card

[MacRumors]

During Apple's earnings call for the fourth fiscal quarter of 2019 this week, Apple CEO Tim Cook said he believed that the Apple Card had the "most successful launch of a credit card in the United states ever," and that Apple was "thrilled" with its reception.

More information on how the Apple Card launch went was shared in Goldman Sachs regulatory filings this week, with key details highlighted by Bloomberg.

From the launch of the card in August to September 30, Goldman Sachs extended credit lines totaling approximately $10 billion to Apple customers. There's no word, though, on how many iPhone users have signed up for an Apple Card.

Customers who did get an Apple Card had $736 million in loan balances at the end of September, though it's not clear how that compares to other credit cards as Bloomberg says banks do not break out performance by individual cards.

Goldman Sachs has historically worked with corporations and major investors, but is aiming to reach a mainstream market through Apple Card. With the launch of Apple Card, Goldman has cut down on unsecured personal loans through its Marcus brand, intentionally slowing that growth while to focus on the Apple-branded offering.

Due to this, nearly all of Goldman's growth came from credit card loans over the course of the last quarter.

Apple has been steadily adding new benefits to Apple Card since its launch to continue to draw new users. Apple Card now offers three percent cash back when using the card for purchases from Uber, Uber Eats, T-Mobile, Walgreens, and Duane Reade, with plans to expand the three percent cash back offering to additional merchants in the future.

At other stores, Apple offers two percent cash back when making an Apple Pay purchase or one percent cash back when making a non-Apple Pay purchase with the physical card or online.

Most recently, Apple announced an upcoming option that will let Apple Card customers purchase a new iPhone and then pay it over 24 months with no interest. It's the same setup as Apple's current device payment plans, but more conveniently integrated into the Apple Card for Apple Card users.

Article Link: Goldman Sachs Issued $10 Billion in Credit Lines for Apple Card

 

[Justin Cymbal]

I got approved for the Apple Card, I use it everywhere that I can where Apple Pay is accepted.

The 2% cashback can't be beat, also I have T-Mobile and have been paying my bill right at the store using the Apple card - they give me 3% back!

 

[newyorksole]

Just a regular guy here, but I’d say that sounds pretty successful. I love mine and hope they keep adding more places that do 3% cash back or higher and other incentives.

Wouldn’t mind a 5% promo or something every now and again either.

 

[miniyou64]

Yessss....track me Apple

 

[31 Flavas]

*Wasteland comment: (?)

Apple Card doesn't have the best perks and benefits or even a single stand out benefit so it is trash! GS issued $10B in credit to suckers who are ripping themselves off!

That Apple Card will be a status symbol, for sure. A status symbol of how terrible and deluded you are!

That’s how to flex, right?

 

[Bandaman]

I got approved for the Apple Card, I use it everywhere that I can where Apple Pay is accepted.

The 2% cashback can't be beat, also I have T-Mobile and have been paying my bill right at the store using the Apple card - they give me 3% back!

I tried getting it three times via the Wallet app and every time they came back telling me they couldn't verify my identity even though I sent them a picture of my driver's license all three times. 😐

But after looking at the "perks" ... my credit cards offer better benefits ... so I guess I'm not too bothered.

 

[iMaK18]

If you do the math, this means that less than 5 million people have signed up for the card. I am estimating under 2 million people, but I want to be more flexible, so anywhere less than 5 million.

You have to take into account that barely anyone knows about the card. Even though it’s on every device, it’s a repeat of the launch of Apple Pay. You use it and no one knew it existed until they see you pay with it.

Except this time around, it’s even harder to spread awareness. Since no one can see your phone when you use the card, they just assume it’s a normal card being used with Apple Pay.
When you use the physical card, they won’t pay attention to the color. It’s only until you hand them the card that they notice the card because it’s heavy metal and has an Apple logo on it.

 

[atomic.flip]

*Wasteland comment: (?)

Apple Card doesn't have the best perks and benefits or even a single stand out benefit so it is trash! GS $10B in credit to suckers who are ripping themselves off!

That Apple Card will be a status symbol, for sure. A status symbol of how terrible and deluded you are!

That’s how to flex, right?

Like many other companies, it concerns me how far reaching Apple’s presence has become and continues to be.

 

[DotCom2]

HOLY PATATA! That's a lot of unsecured debt!

 

[cjgrif]

I had been on the fence about signing up since launch, but went through the application process yesterday - it was easy and efficient. Unfortunately, my approved interest rate was higher than I would have expected with my credit score/history, so I ended up declining the offer. Granted I almost never carry a balance so maybe I was just being petty...

I'll be interested to see how the financing works out for the iPhone. Citizens One was a pain to deal with after their "system upgrade" that somehow marked me delinquent when the payment clearly went through. Called them up and they say payment was made and it's fine - the next month they took a double payment anyway. On the plus side my phone was paid off a month early.

 

[freedomlinux]

it concerns me how far reaching Apple’s presence has become

Fortunately, there is a very easy way to customers to decide not to get an Apple Card...

 

[gugy]

The AC has not appealed to me so far. But if Apple gets a 24 month 0% interest on all Apple products purchases above $500, that will be a huge attractive perk.
I need a bunch of hardware soon, so paying it over time sounds very good.

 

[npmacuser5]

The Apple Card a thumbs up. 👍

 

[unobtainium]

I got approved for the Apple Card, I use it everywhere that I can where Apple Pay is accepted.

The 2% cashback can't be beat, also I have T-Mobile and have been paying my bill right at the store using the Apple card - they give me 3% back!

But isn't there a discount for turning autopay on too? I believe it's $5 per line. So depending on your bill that could beat the 3%.

 

[DNichter]

I like mine a lot and use it whenever I use Apple Pay. I don’t know how or who it could compare to, but those numbers feel pretty successful to me, especially since it is a pretty new type of product.

 

[calzon65]

Best looking credit card around.

 

[BWhaler]

I’m sure I cold get a better card based on benefits, but I care more about privacy and ease/integration. Mostly privacy.

So for me, Apple Card is perfect.

 

[coachgq]

*Wasteland comment: (?)

Apple Card doesn't have the best perks and benefits or even a single stand out benefit so it is trash! GS $10B in credit to suckers who are ripping themselves off!

That Apple Card will be a status symbol, for sure. A status symbol of how terrible and deluded you are!

That’s how to flex, right?

Or there can be folks who are taking that 3% and paying off their card every month.

 

[advancewarsbest]

*Wasteland comment: (?)

Apple Card doesn't have the best perks and benefits or even a single stand out benefit so it is trash! GS $10B in credit to suckers who are ripping themselves off!

That Apple Card will be a status symbol, for sure. A status symbol of how terrible and deluded you are!

That’s how to flex, right?

Hello friend, what is the best credit card with benefits; I am trying to get better with credit cards and could use help

 

[Saturnine]

Every time I see news about the “success” of the Apple Card I get a little bit sad.

I was, until just a few months ago, in quite a lot of debt. I worked damn hard to get myself out of it and it’s an amazing feeling to know I no longer owe any money to anybody. Everything I earn is my own now.

Of course, everybody is entitled to spend their own money however they choose and take on debts as they see fit but I do hope Apple via Goldman Sachs is lending responsibly.

I was stupid and I’m sure most people are more sensible than I was. I still don’t believe it’s healthy to normalise buying things with money you don’t yet have.

As for the perks of buying on a credit card, I do now have an Amex charge card. There’s no credit limit, no interest and some great benefits but the balance has to be paid in full every month. The best of both worlds for me.

 

[BootsWalking]

Think Different, young vampire squid.

 

[Justin Cymbal]

But isn't there a discount for turning autopay on too? I believe it's $5 per line. So depending on your bill that could beat the 3%.

The 3% is in addition to the $5 per line auto pay discount which I signed up for as well - but in order to get the 3% you have to physically pay your bill at the T-Mobile store. There was a Mac rumors article that came out last month mentioning the 3% at T-Mobile

 

[class77]

I had been on the fence about signing up since launch, but went through the application process yesterday - it was easy and efficient. Unfortunately, my approved interest rate was higher than I would have expected with my credit score/history, so I ended up declining the offer. Granted I almost never carry a balance so maybe I was just being petty...

I'll be interested to see how the financing works out for the iPhone. Citizens One was a pain to deal with after their "system upgrade" that somehow marked me delinquent when the payment clearly went through. Called them up and they say payment was made and it's fine - the next month they took a double payment anyway. On the plus side my phone was paid off a month early.

Interest rate doesn't matter if you pay it off monthly!

 

[mannyvel]

If I could sign up I would, I keep getting a connection error. Next I'll be heading to the Apple store, because Apple says my network isn't "reliable."

 

[jerryk]

Every time I see news about the “success” of the Apple Card I get a little bit sad.

I was, until just a few months ago, in quite a lot of debt. I worked damn hard to get myself out of it and it’s an amazing feeling to know I no longer owe any money to anybody. Everything I earn is my own now.

Of course, everybody is entitled to spend their own money however they choose and take on debts as they see fit but I do hope Apple via Goldman Sachs is lending responsibly.

I was stupid and I’m sure most people are more sensible than I was. I still don’t believe it’s healthy to normalise buying things with money you don’t yet have.

As for the perks of buying on a credit card, I do now have an Amex charge card. There’s no credit limit, no interest and some great benefits but the balance has to be paid in full every month. The best of both worlds for me.

Agree with not buying things you could not buy with cash.

I view credit cards as a convenience. The CC means I don't have to carry cash, and the bank/Apple is loaning me money for a few weeks interest free. Every month I pay off my balance.