Gurman: Chase Bank is 'Ideal Partner' to Take Over Apple Card Deal

[Patchwork]

JP Morgan Chase is one of the biggest investors in the fossil fuel industry over the last few years. I’m not sure that really fits with Apple’s environmental stance. While it may not stop Apple switching, it will definitely raise questions for Apple.

 

[Sorinut]

I live in New Zealand (but am from the US) and I got my Apple Card so I could use it overseas with no foreign transaction fee. I currently only use it for foreign purchases using US money. If they switch to Amex, the Apple Card is 100% worthless to me and I'll have to find another fee-free card with no foreign transaction fees. I also ditched Amex Savings (which had terrible customer service) for the Apple Savings account, which had a better interest rate at the time. I definitely will not switch back to Amex for savings, so will also need to find a new savings account. I already have a Chase credit card as my primary US card, so I will likely stick with Apple Card and Apple Savings if they move over to Chase. But if it's Amex, Apple Card is dead to me.

Oh, and I'm also a 'deadbeat'. I have only ever paid credit card interest once, and I got that refunded because it was due to my autopay automictically expiring and not notifying me (early 2000s problem).

The majority of Capital One cards are fee-free and have no foreign transaction fee.

 

[zorinlynx]

I wouldn't mind if Chase took over Apple Card. I'm already a Chase banking customer and have been very happy with them, so bring it on.

One small benefit for me will be payments likely becoming instant since it'd be within the same bank.

 

[Böhme417]

AMEX HY is higher than GS

No, it's not. I have a Marcus HYSA at 4.5% right now. Amex is only offering 4.3. I literally had an Amex HYSA and moved it all to GS back when Amex was at 4.15.

 

[newyorksole]

I love Chase. looking forward to whatever is coming!

 

[steevn]

People are going to be in for a shock when Synchrony is their only offer.

People must be insane to think Chase (or any large U.S. bank) would actually take on this card and its subprime users.

 

[Drew1980]

JP Morgan Chase is one of the biggest investors in the fossil fuel industry over the last few years. I’m not sure that really fits with Apple’s environmental stance. While it may not stop Apple switching, it will definitely raise questions for Apple.

In today’s climate, it will make no impact to apple’s decision. It’s a numbers game.

 

[steevn]

I agree with AMEX but Apple may have “kicked themselves” in that AMEX is super picky on whom they offer credit to. They do NOT lend to subprime borrowers and since Apple pushed GS to lend to as many people possible, including subprime, they’re now suffering the consequences as their loss rate is too high. AMEX does indeed carry the world class prestige that Apple loves, but too many losses for AMEX comfort.

I don’t think Amex would even want to take over the Apple Card, but I do have to mention Amex cards are not that difficult to obtain.

The Platinum, Gold, and Green charge cards are some of the easiest cards to obtain for those with bad and/or no credit history.

I’ve essentially quit credit card churning after opening/closing about every credit card available but there are multiple data points of people being approved for Amex charge cards(and their credit cards) with FICO score in the 600’s and even 500’s on occasion.

I love everything about Amex though so that would be ideal for me, Chase would be second and Discover third but hard for me to imagine any of these banks taking over this card.

 

[JapanApple]

Goldman Sachs was terrible, but Chase? bad to worse? 💩📉

 

[flexwithmarius]

In order of preference:
1. AmEx
2. Chase
…
8373848238891. Synchrony

 

[redfirebird08]

Can we beat 4.15% please?

Chase pays very close to 0% on their typical savings accounts. Curious to see how this plays out with Apple.

 

[Drew1980]

I don’t think Amex would even want to take over the Apple Card, but I do have to mention Amex cards are not that difficult to obtain.

The Platinum, Gold, and Green charge cards are some of the easiest cards to obtain for those with bad and/or no credit history.

I’ve essentially quit credit card churning after opening/closing about every credit card available but there are multiple data points of people being approved for Amex charge cards(and their credit cards) with FICO score in the 600’s and even 500’s on occasion.

I love everything about Amex though so that would be ideal for me, Chase would be second and Discover third but hard for me to imagine any of these banks taking over this card.

Agreed. Or hard to believe they’d take the credit card on the terms of today. I can see a scenario where they would continue the 0 APR Apple purchases with a $5 fee or something like that. The Daily Cash I feel would be instantly out the door. Besides, what are you going to to with that 0.15?

Apple set out to create a consumer friendly card and were lucky to find a stooge to agree to all the terms. In reality, no bank will agree to those terms today. That’s evident with the GS failure and the big banks that compete for this business will use that as leverage.

 

[lc96]

For sure will be cancelling my Apple Card if chase take over. They are the reason I don’t get the Marriott card, or anything with chase . Same reason I canceled my united and Amazon prime , they are terrible and their customer service is horrible. The worse credit card out there . I’ll take anything else before chase .

We have the Marriott card. An online purchase of approximately $65 ended up being fraudulent. We went through so many hoops trying to dispute the charge we finally went to a local Chase bank where one if the managers looked into it and got the credit. Awful.

 

[cardfan]

Not sure which bank would rush to have losses on this like Goldman did.

 

[lc96]

I love all things Apple but if I have to go elsewhere for a HY savings account and they have a competitive card Apple will lose this business. Or I could just go back to my SkyMiles card.

Apple needs to pretty much replace like with like or they will lose customers.

Already we are in the process of moving accounts to a different HY bank because GS/A is now a laggard at 4.15 APY. It’s easily possible to beat that by a percent.

Where? In a certificate?

 

[cardfan]

People are going to be in for a shock when Synchrony is their only offer.

People must be insane to think Chase (or any large U.S. bank) would actually take on this card and its subprime users.

Pretty much. They’re probably the main choice. I don’t really use Apple card as it is besides the default for iTunes. I get like a 2 dollar charge each month for iCloud. Apple Card kinda sucks.

 

[CapitalIdea]

I agree with AMEX but Apple may have “kicked themselves” in that AMEX is super picky on whom they offer credit to. They do NOT lend to subprime borrowers and since Apple pushed GS to lend to as many people possible, including subprime, they’re now suffering the consequences as their loss rate is too high. AMEX does indeed carry the world class prestige that Apple loves, but too many losses for AMEX comfort.

Do you have any citation to back up your claim that Apple, who has never catered to the downmarket segment in any of their product categories, not only pushed but successfully convinced a company like Goldman Sachs to extend subprime credit?

 

[1129846]

I don't see chase or Amex taking the poor deal them that Apple demand. Plus they are seeing how much Goldman is loosing so even less likely. Chase will want things more like their normal terms.

 

[Drew1980]

Synchrony would be a mess!
They’d have to revamp their image and customer service to support Apple Card. Think Credit One in terms of customer service. Can’t understand a damn word and you get a different answer. Zero consistency.

 

[Drew1980]

Do you have any citation to back up your claim that Apple, who has never catered to the downmarket segment in any of their product categories, not only pushed but successfully convinced a company like Goldman Sachs to extend subprime credit?

I don’t think anyone has proof. We know Apple pushed them to lend to “less than perfect credit” and GS was desperate for the business. They wanted Apple Card so bad they agreed to those egregious terms.

 

[svish]

Hopefully with a new partner, Apple Card availability expands internationally

 

[smitster]

I love all things Apple but if I have to go elsewhere for a HY savings account and they have a competitive card Apple will lose this business. Or I could just go back to my SkyMiles card.

Apple needs to pretty much replace like with like or they will lose customers.

Already we are in the process of moving accounts to a different HY bank because GS/A is now a laggard at 4.15 APY. It’s easily possible to beat that by a percent.

I felt similarly frustrated that the Apple GS SA's yield remained at 4.15% far longer than I preferred. For months now I ship any amounts > $100 over to TreasuryDirect and simply purchase T-Bills. I liked seeing my balance in GS increase over time, but not at the expense of seeing the yield fall further and further behind the alternatives.

 

[rexhunt]

Chase has a significant relationship with Visa that makes the costs significantly lower than running on Mastercard. Unless Mastercard is throwing some significant incentives to chase for keeping a card on their network it will be transitioned to Visa

 

[macduke]

I have Chase cards and accounts. They are usually pretty reliable but I dislike how these gigantic corporations/banks are gobbling everything around us. Pretty soon we will be ruled by a dozen of entities. Good luck fighting this trend.

We’ve been ruled by a dozen entities for decades. The top 12 billionaires have their hands in everything. What you need to watch out for are the companies that set value. I’m talking how everyone is using the same algorithm to set rent prices, basically colluding on price fixing without actual people doing it. Or how the parent company of Kelly Blue Book is Cox Enterprises.

They own Autotrader, a bunch of car auction houses, they have huge lots full of cars in the middle of nowhere so they can manipulate used car prices to keep their fees high, they have companies that help Auto Dealers in marketing, they have companies that aid in auto finance, they own Cox Communications and Cox Media which own a lot of the communication infrastructure for cable and also television and radio stations and companies that sell ads to television and radio stations. They also bought Axios and have an huge stake in Rivian. And that’s just one example of a mega-conglomorate but what they do affects all of us in driving up cost and then burying that by owning a big chunk of the media, lol. I probably sound like a conspiracy nutbag for the uninitiated, but look it up, it’s crazy and true.

 

[Drew1980]

We’ve been ruled by a dozen entities for decades. The top 12 billionaires have their hands in everything. What you need to watch out for are the companies that set value. I’m talking how everyone is using the same algorithm to set rent prices, basically colluding on price fixing without actual people doing it. Or how the parent company of Kelly Blue Book is Cox Enterprises.

They own Autotrader, a bunch of car auction houses, they have huge lots full of cars in the middle of nowhere so they can manipulate used car prices to keep their fees high, they have companies that help Auto Dealers in marketing, they have companies that aid in auto finance, they own Cox Communications and Cox Media which own a lot of the communication infrastructure for cable and also television and radio stations and companies that sell ads to television and radio stations. They also bought Axios and have an huge stake in Rivian. And that’s just one example of a mega-conglomorate but what they do affects all of us in driving up cost and then burying that by owning a big chunk of the media, lol. I probably sound like a conspiracy nutbag for the uninitiated, but look it up, it’s crazy and true.

To sum up in one word: CAPITALISM