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

[PickUrPoison]

One more thing...

Knowing I was going to be out of contact at the end of October I paid my bill a few days early. The problem was the Wallet app would only let me pay the charges that were posted (~$900). It would not let me pay the pending charges (<$80). To my surprise I was charged interest on the 2nd.
I tried to resolve this through the Wallet app, but each time my message couldn't be delivered. I eventually found the GS support number and they say they have removed the charges. Still appears on my phone, but I assume that's because it is the weekend.
But this experience tainted my early impression of the Apple card. The sales pitch touted convenience, lack of fees, etc. But, in practice, I was disappointed. Why on earth wouldn't they let me pay the whole bill? And the amount of interest, though small, was high considering the charges were only a day or two old.
Maybe it's just teething problems, but it has made me suspicious. If it happens again, I'm out.

You’re somehow confused. The payment you needed to make to prevent interest isn’t the charges in the current month, either posted or unposted. You needed to pay the previous month’s statement balance (September). What date did you pay the September balance?

 

[Abazigal]

This has to be the one credit card I don’t have yet. I just don’t see the value. All travel expenses and everyday spending go on Sapphire Reserve. Can’t beat the points earned and their redemption value. Business expenses go on the Club Card, which includes lounge access that costs less using the card than it would on it’s own. Plus, until next year at least, spending $25K waves the dollar requirement for status. I fly long distance flights, so I get to the next tier with ease. Amex card offers 6% back on groceries and gas. That pretty much covers everything. Plus, Amex often has point back deals. I am pretty sure I’ve seen Apple on there with 3% back.

Is anyone else in similar situation? If so, what makes the Apple Card a worthy addition? Am I missing Something here?

I don’t think the Apple Card is for you if you already have multiple credit cards and are willing to juggle them all to get the best deal on any purchase you make.

I see the Apple Card as being ideal for someone who just wants one credit card for simplicity. You don’t have to pay attention or cherry pick which merchants you spend with. It boasts a number of neat features like the ability to regenerate your credit card number on the fly, as well as the promise of improved privacy and better tracking of your spending habits.

It simply isn’t realistic to expect that one credit card will somehow offer you better deals than 3 or 4 different cards combined.

 

[iMi]

$75? I’m paying $95. 😤

Don’t forget 3% on parking!

I know. I got grandfathered into the lower fee. I’m sure it won’t last forever...
[automerge]1572823560[/automerge]

You're comparing a $450 annual fee card to a $0 no-annual fee card, that's why. The Apple Card is fee free, with decent perks for the $0 annual fee tier. That said, that is potentially poised to destroy (or just capture) the market where banks offer sleazy 'credit cards' with predatory rates and fee structures to those who have no prior credit history or poor / damaged credit. There were initial reports of acceptance being offered to those with scores in the 600's and below - mind you with maybe only $250 of credit and a 20% interest rate - But, accepted, with no fees (other then interest, if you carry a balance) and a simple to use system that allows for easy / automatic payments and a payment window that encourages you to not carry a balance or incur interest by showing you the $ amount you will owe if you choose to not pay in full and carry a balance.

If you're able to come out ahead despite your gigantic annual fee(s) then by all means stay with your current cards.

You make an excellent point. When you’re starting out or rebuilding credit, your only option really are the sleazy credit cards with ridiculous interest and fees. The Apple card at least comes from a consumer friendly company. And let’s face it, Apple is pretty good at most things they do, so this should be no exception.

 

[ghanwani]

Yep, I haven’t held a credit card for over ten years. I use a debit Mastercard issued by my bank.

Enticing people into debt is not a “success“.

I would really like to be that way too.

How do you:
- Justify leaving money on the table, an easy 2%?
- Rent cars and pay for hotels? (As far as I recall, many require a credit card.)
- Ensure you have limited liability in case of fraud or if a merchant charges you but doesn't deliver?

 

[hellopupy]

This is the beauty of capitalism. Goldman Sachs risked their capital to extend billions in credit lines, the profit should be theirs to earn. Even though we all know they will profit eventually, nobody forced the applicants to get the credit and not pay it off on time.

Don't buy stuff that you actually can't afford.

 

[Tech198]

Why not just use a credit card and pay it off every month, and pocket the cash back?

Easier said than done....

We just wanna keep buying stuff.. That's the problem.

I'll admit, i'm not exactly over-limit, but on my 55 day Visa, is not exactly all paid off either.

 

[TechThule]

You’re somehow confused. The payment you needed to make to prevent interest isn’t the charges in the current month, either posted or unposted. You needed to pay the previous month’s statement balance (September). What date did you pay the September balance?

9/26. And I wasn't charged any fee or interest.

 

[ddtmm]

Meh, it's another card... whatever.

 

[1146331]

That is pretty amazing, to be honest. As somebody mentioned, this is the great thing about capitalism.

Unfortunately at the other side of this statistic are all the idiots buying crap on their Apple card at 20-30% interest and not paying it off, thus putting themselves further and further in debt while Apple and Goldman Sachs get richer.

That's also the great thing about capitalism though, the freedom to make choices, even if they are bad and make you struggle so you can have the latest and greatest iPhone.

 

[PickUrPoison]

9/26. And I wasn't charged any fee or interest.

Maybe there is confusion with the definitions.

The payment that was due on October 31 was for your September purchases, the statement period September 1 through September 30.

Find the statement for the period September 1 through September 30. It will tell you the amount you should have paid by October 31 (but didn’t).

You had all of October to pay that amount, and that amount isn’t affected by any posted or pending charges you made during October.

The charges you made last month, during October—from October 1 through October 31—are not due until November 30. Pay that statement balance by the end of November to avoid interest charges.

The amount due by November 30 will be the same whether you make no charges during November or charge it up to the limit. All the charges you make this month won’t be due until December 31.

 

[BuddyTronic]

Maybe there is confusion with the definitions.

The payment that was due on October 31 was for your September purchases, the statement period September 1 through September 30.

Find the statement for the period September 1 through September 30. It will tell you the amount you should have paid by October 31 (but didn’t).

You had all of October to pay that amount, and that amount isn’t affected by any posted or pending charges you made during October.

The charges you made last month, during October—from October 1 through October 31—are not due until November 30. Pay that statement balance by the end of November to avoid interest charges.

The amount due by November 30 will be the same whether you make no charges during November or charge it up to the limit. All the charges you make this month won’t be due until December 31.

Say What?

People here know all about Fica scores and credit ratings and so forth. People know when they think some new Apple product is $49 over priced and they know that Apple is gouging customers and so forth. They say it with authority.

But people need coaching like this post above to pay off their credit card on time? I find this to be ironic. What is wrong with people?

 

[anson42]

Meh, it's another card... whatever.

I felt the same way initially. But this card's integration into the Wallet with a good UI and detailed information is well done, if you care about such things. This type of native integration is a huge win over the third party card experience, some of which was facilitated by Wallet integration, too.

 

[kyleh22]

I got the apple card for international travel. I like the idea of having a card without credit card numbers while I'm countries that are less safe. I also like that there are no international transaction fees.

 

[Braderunner]

So, I messaged an "Apple Card Specialist" thru the wallet app to ask why my interest rate was increased. Their answer: Because I have an unpaid balance, and pending transactions. What?
No payment due until Nov. 30th. But since I had a balance ($112), and a couple of pending transactions (less than $35 pending), they raised my rate.

 

[bigjnyc]

So, I messaged an "Apple Card Specialist" thru the wallet app to ask why my interest rate was increased. Their answer: Because I have an unpaid balance, and pending transactions. What?
No payment due until Nov. 30th. But since I had a balance ($112), and a couple of pending transactions (less than $35 pending), they raised my rate.

That doesn't make any sense. The only way that would increase your rate is if you don't make the payment until after the due date, thus making it a late payment..... I would try again to see if you get someone more knowledgeable, and if not satisfied ask to speak to a manager. Unless something really negative happened to your credit your rate should not go up, especially since the fed lowered the prime rate.

 

[Braderunner]

That doesn't make any sense. The only way that would increase your rate is if you don't make the payment until after the due date, thus making it a late payment..... I would try again to see if you get someone more knowledgeable, and if not satisfied ask to speak to a manager. Unless something really negative happened to your credit your rate should not go up, especially since the fed lowered the prime rate.

That makes no sense was my exact response. The only change in my credit is that I paid off my car loan. Which, hasn't affected my score (either way) yet.

 

[31 Flavas]

I used to work for a credit card company and dealt with low credit customers for a long time, $200 credit limit, monthly fees, etc. Most were so happy to have any credit card, but a lot maxed it out and never paid.

There are those that just are sleezy themselves or as you point out - just can't help themselves when they have any amount of money. But, for those that aren't, or are looking to rebuild, altruistically I want them to have a good option over the predatory credit market. That potentially could be the Apple Card.

Some people on here are obviously wealthy and qualify for the best cards but the general user on here probably would do better with the Apple Card from what I've seen.

Right, it's a solid card with no fees or gotchas, straight forward non-complicated rewards, and encourages you / shows you how to avoid interest charges, and will directly show you what your interest charge will be if you are paying less then the statement amount. For a large portion of Credit users this is going to be a huge thing. As you state this will legitmately be a better product for them. Clearly that won't be very interesting to someone willing to play the jumping though hoops game because they're responsible or just wealthy.

However, the legit criticism of "Hey, there are better cards out there." Seems to be taking a backseat to criticism of the physical titanium Apple Card as a "status symbol". So you get meme things like "How to flex" your Apple Card. Or critical critics not recognizing just how much they symbolize their own use of their credit cards.

To highlight just how ignorant one YouTuber felt that use of the physical Apple Card was (because, at the time, another $0 annual fee card offered 4% cash back): They went so far as to say that if, at a dinner party or similar outing, if they saw the Apple Card being used by someone they'd step in and instead pay for that person's meal to help them "save face". Yet, I can't imagine the same person would have the same "pity" or "concern" for anyone else at the same event using a straight debit card or cash.

I mean, the Apple Card is just a credit card.

 

[Arcus]

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

Anyone who is not paying all of their credit cards off monthly is doing it wrong and it makes ZERO sense for them to bitch about the cash back.

Using mine for all my daily stuff I get about $25 a month back.

 

[ddtmm]

So, I messaged an "Apple Card Specialist" thru the wallet app to ask why my interest rate was increased. Their answer: Because I have an unpaid balance, and pending transactions. What?
No payment due until Nov. 30th. But since I had a balance ($112), and a couple of pending transactions (less than $35 pending), they raised my rate.

I'm always amazed at how many people keep a balance on their credit card. If you're going to pay off your card every month, who cares what the interest rate is. It might as well be 100% - doesn't matter if you pay off your balance every month.

If you really did have to run a balance for a month or 2, use a line of credit to pay off your credit card. At least the LoC interest rate is way lower than the credit card rate.

 

[bigjnyc]

I'm always amazed at how many people keep a balance on their credit card. If you're going to pay off your card every month, who cares what the interest rate is. It might as well be 100% - doesn't matter if you pay off your balance every month.

If you really did have to run a balance for a month or 2, use a line of credit to pay off your credit card. At least the LoC interest rate is way lower than the credit card rate.

I think its just a psychological thing to be honest.... It's been years since I've carried any kind of balance on a credit card but for some reason the rates still matter to me when looking around for a credit card lol.... I don't know why since it won't matter, but it does for some reason.... I still want to get the lowest rate possible for some odd reason.

 

[Braderunner]

I'm always amazed at how many people keep a balance on their credit card. If you're going to pay off your card every month, who cares what the interest rate is. It might as well be 100% - doesn't matter if you pay off your balance every month.

If you really did have to run a balance for a month or 2, use a line of credit to pay off your credit card. At least the LoC interest rate is way lower than the credit card rate.

I don't know if you are just speaking in general terms, or what. If so, why reply to me with a general statement.
I already stated that I pay off my balance every month, and don't pay interest. I was just posting that my interest was raised, and I was not informed. Just to let others be aware.
I was irritated at their answer for the increase. Because I had an unpaid balance, and pending charges. I mean...no, I don't make a payment after every transaction. I pay weekly, or sometimes every couple weeks. But, always pay it off. The fact that they increased it because I use the card...is insulting. Since, I've paid it off, and haven't used it. Have they lowered my rate? No. I already didn't have a favorable opinion of GS. Now, it's even lower.