iPhone Upgrade Program Causing Headaches for Some Launch Day Customers

[JodyK]

It was listed in the terms of eligibility on apples site right after they announced it. It wasn't easy to find but if you google iPhone upgrade eligibility it will come up. So to be fair apple did technically inform everyone of how the process works, although not very actively and they should have said it in their email after reserving your phone.

While I am absolutely sure your correct ... Why not tell the customer that up front when you have them in front of you purchasing it. Or at the minimum tell them once they hand you their company credit card. Then as stated insult to injury they took my debit card and tried a 2nd time.

And why not take the customers company card with their name on it or debit card?? Your financing their credit history. If someone has never made 1 late payment on anything ever (cars houses Etc) why would they not pay their $45 a month iPhone bill.

 

[JodyK]

You win!

If you had financed your phone you may have been lucky to make a $50 ROI by the end of two years. You did it in less than an hour

True the case was right at $50 after tax. Very nice of the manager who was not at fault with the bank policies and the gentleman who helped me didn't really have a clue as this is a all new thing and clearly they weren't trained enough on it.

 

[DustinLH00]

What Apple has done is setup yet another third party to provide financing for their devices. Right now it is the iPhone, but for other products like a Mac or iPad, Apple has PayPal or Barclay's Bank offer 0% financing for 6-18 months depending on the device. Depending on the financing company, the whole application can be botched because they're in the business of providing credit for Apple products and any other company. Attention to detail is not their forte.

Perhaps Apple needs to take a lesson from Toyota here. For a car company, Toyota has plenty of cash for financing just their vehicles at 0% and nothing else. In this instance, Apple could offer its own financing to people who have credit scores of 700 and above with steady incomes. It can be used only at the Apple Store for financing the purchase of any new Apple device. That device could be the Mac, iPad, iPhone, Apple Watch or iPod. It could not be used to finance Beats headphones, software, and accessories.

If Apple did this it could leverage people in to their entire ecosystem where they would use a Mac, iPhone, iPad and Apple Watch. It would suck in millions of new customers in the US. When Apple's financing company has this information, it could then automatically pre-qualify people for the Apple Car coming 2020. To me this is the larger way ahead to increase profits.

Apple is not a finance company and there are strict regulations on lending money. You will also notice that most of the car companies, like Toyota, do their loans through a separate company (i.e. Toyota Financial Services). Apple would likely have to establish a new company, Apple Financial, and get through all of the red tape. Plus, they would be taking on more risk and with 0% interest not really make any money on it.

 

[JodyK]

?

The only debt I have is my house payment. I have financed cars in the past but current cars are and have been paid for. No credit card or revolving debt. I worked in the finance sector for awhile and saw the pitfalls of credit cards.

I have my companies Amex card but that gets paid bi weekly. Only have it for the Airline lounge perks and points.

Your credit score is based on your payment history but also your income to debt ratio factors in ... Thus perfect payment history and low debt = my good credit score.

 

[JodyK]

The reason many people are getting declined is because the card has to have an available credit limit of 3 months payments and the tax.

There are also some credit cards that do not qualify for the program, like discover card does not seem to work well.

I doubt "many people are getting declined" because their card has less than 3 months payments credit limit???

That's $150 tops!

I can tell you from experience today

- No company CC even if you own the company and your name is on the card

- No debit cards even if you have enough in that account to pay for 150 months of payments.

 

[sscerberus]

Everyone–

TL;DR: Don't use Chase or Amex till further notice. Citizens One is aware and the the credit check is a hard inquiry still if you try.

Longer: I'll save the horrible in-store experience story, but after getting home (I ended up doing ATT Next, I can return and swap later if things change... May just buy it outright) I called Citizens One:

Currently -any- Chase visa card is not eligible for the program and neither is American Express. Irrelevant of Personal or Commercial. They are looking into it and taking "all feedback down". They expect to know more in 24 hours and will be calling me back. I'll update once the supervisor calls. To be honest, super friendly and short hold time.

I was able to do it with a chase freedom card I was in the group of the first 5 people in the store when it opened though.

 

[chourobin]

PSA for T-Mobile or Sprint: I was denied iPhone Upgrade Program because the primary account is under my sister's name and she lives in a different state. Seems like a reasonable scenario for family plan owners and they have no way to handle it at all.

Worst of all, they make no mention of it anywhere on the website or in the terms. What a cluster****.

 

[Jstuts5797]

I concur. These things only cost a few hundred dollars... why waste your time with a plan like this? The only things I've ever financed before was my wife's engagement ring and my house. I would consider financing a car, but never have.

Only cost "a few hundred dollars" lol! You realize in the grand scheme of things your in a very very small minority that can buy cars and the such in full with cash right? Whoever said check your privilege is absolutely correct. Apple wants these in the hands of the majority... Otherwise the ecosystem would never work because there wouldn't be enough people on it to support it.

 

[JodyK]

What a ***** experience at the Cumberland Mall Apple Store in ATL. As many here I have an 800+ FICO score and pay everything on time. Turned down on 3 different cards after multiple tries on 2 visits. They ran them a total of 10 or more times so I'm hoping that won't damage my credit.

My reasons for going with one of these programs is to lock in my sale price for next year and reduce the hassle and fraud risk of selling the phone myself. That is worth the slightly higher overall cost. I also like that with the Apple program you only pay for the half of Apple Care + that you use unlike my current 6 which I'm trading into Amazon with a year left on the plan.

I'm in the Atl area also and went to North Point and had a similar experience. 780 score never skipped a beat ever. Had 2 had hits on my credit. 10 will def pull your score down a little temporarily.

I'm with you in the program is nice because it gives you options. Get another and not hassle with selling (Ebay fees add up ... Craigslist scammers ... Wasting time). Or you can pay it off and start the program over if the values hold strong. And like you said you are only paying the portion your using for the now more expensive AC+.

 

[WowAppleWow]

I had a different issue.

Apparently, because my AT&T account is bundled with Uverse and DirecTV, for SOME reason Apple's activation servers that ping ATT to make sure my account is eligible for a phone doesn't work. Apple sees my account but says my line isn't upgradeable.

Fortunately, there was an AT&T rep at the Apple Store today. She said she got an email earlier today stating that customers like me would not be able to get on the Upgrade Program today. My only option is to buy the phone outright, call AT&T and unbundle my account (which the AT&T rep did for me while I was in the store), wait 5ish days for the unbundling to happen, and go back into the Apple Store and sign up for the program by essentially returning my phone and repurchasing it on the upgrade program.

So that's what I did. Nearly $1000 out the door today and next week or the week after I'll head back to the Apple Store and go through all of that. Very frustrating.

If you paid for it... why take it back and do all of that? I agree that I would be upset but it seems like that's a lot of work when you will pay for the phone on Next anyway?

 

[WowAppleWow]

So you're comparing a house or car to a smartphone?

A house and a car are far different than the phone....

 

[s2obed]

I went to an Apple store at 6PM and the process took less than 15 minutes. I was in the middle of a 2 year contract with AT&T for my iPhone 6 and I wasn't sure how the Apple iPhone upgrade program would work with this but everything went through fine.

I used my capital one credit card and my credit score is in the mid 600s.

 

[Ron Johnson]

AppleCare+ is included in the monthly price. Now the question I have is, if you turn in the phone after 12 months for the upgrade to the iPhone 7 will you get a refund on the remaining 12 months of AppleCare+.

yes and no. If you trade in phone all payments are forgiven and you start over, so you never paid the remaining 12 months of applecare anyways. You can however always return applecare by calling them and they can return it whenver even with the iphone upgrade program. This is subject to a prorated refund.

Can someone who has gone through the process by putting the new phone on an existing account verify something for me?

I have an appointment to go to the Apple Store tonight. The idea of doing this was attractive to me for two reasons. First, I could use other peoples' money to finance the phone over two years. Second, I could do this without involving Verizon, and thereby avoid their stupid $40 upgrade/activation fee.

But the fine print on the deal leads me to believe that I have to somehow bring Verizon into the mix on this, and "activate" the new phone with them. This is technically unnecessary, because all I really need to do is put my existing SIM in the new phone and it will work. If I have to involve Verizon in this transaction in any way I am not interested in doing it. I'll just pay cash for an unlocked phone and go on my way.

Can anyone verify that they tried, and were successful in just buying the phone without involving giving carrier account information?

Iphone upgrade program phones need to be activated at the time of purchase. In order to do so you need carrier information. "because all I really need to do is put my existing SIM in the new phone and it will work" - yes, if you buy the phone outright. Iphone upgrade programs have a new sim installed and are necessary to be activated and then you can do what you please with them after that.

 

[kaitak98]

I'm in the Atl area also and went to North Point and had a similar experience. 780 score never skipped a beat ever. Had 2 had hits on my credit. 10 will def pull your score down a little temporarily.

I'm with you in the program is nice because it gives you options. Get another and not hassle with selling (Ebay fees add up ... Craigslist scammers ... Wasting time). Or you can pay it off and start the program over if the values hold strong. And like you said you are only paying the portion your using for the now more expensive AC+.[/QUOTE
Good to know I'm not the only one. Although the guy at the next seat on my first visit was having the same issue. And he was switching from an S5 or something.

I'm in the Atl area also and went to North Point and had a similar experience. 780 score never skipped a beat ever. Had 2 had hits on my credit. 10 will def pull your score down a little temporarily.

I'm with you in the program is nice because it gives you options. Get another and not hassle with selling (Ebay fees add up ... Craigslist scammers ... Wasting time). Or you can pay it off and start the program over if the values hold strong. And like you said you are only paying the portion your using for the now more expensive AC+.

Good to know I'm not the only one. Actually the guy at the next seat on my first visit was having the same issue. I didn't see if he got it resolved.

I have 8 fair credit emails from this Loser Federal Savings and Loan or whoever they are so I guess that's how many times they hit my credit. Anybody have insight on what that does to my credit and for how long? Logic would dictate that multiple transactions for the same amount over a short period of time are prob the same thing but logic isn't in the credit industry's best interest. It was their problem with certain cards but they just kept pulling reports like it was nothing. I may file a complaint with whoever regulates them just out of spite.

This won't stand one way or another.

 

[Ron Johnson]

I don't think that is the case, I was offered a 24 month plan that did not include apple care or the ability to upgrade after a year. It was about 5 dollars a month cheaper. I didn't do it but it was an option.

There are two options.

1. Iphone upgrade program
2. Iphone installments

1- you finance iphone and applecare and can trade in after 12 months.
2- finance phone only for 24 months. no applecare no trade in. Same as Verizon device payment.

 

[Ron Johnson]

Same story here...my daughter has a debit card with $1000 in her account...denied. A Discover card with $1500 credit limit and 0 balance...denied. I let her use my card with a $25K credit limit/$4500 cash advance line...denied. The poor clerk at the Apple Store kept saying it wasn't Apple's fault it was Citizen Bank...well Apple chose them as their partner!

Cant use debit cards. Need to make sure information is filled out as per the billing address to that card, including name etc. as you would if you bought something online. You said you let her use your card, and that would not work as you need to punch in your full social security number and it would deny you. Sorry sounds like its you and the reps fault.

 

[Ron Johnson]

Add me to the laundry list of folks who had issues. Flawless credit and was declined and was like WHAT???? Then the guy says oh your credit card is your company card (company I own and my name on card) and that's prob why.

We go through the process again and I give them my personal debit card which carries a decent balance. At least enough to pay off the iPhone at anytime ... Decline! Oh you can't use a debit card.

I don't have a personal credit card ... One reason I have great credit ... Low debt!

Frustrating as if I was told this upfront I could have saved time, hassle and credit inquiries. The manager on duty gave me a case for the time and hassle. I paid for iPhone 6s Plus and was out the door.

You will also need a valid U.S. personal credit card. Debit cards and prepaid cards are not accepted.

taken from the website. Your right you did have issues, you. thats it.

 

[paran]

Everyone–

TL;DR: Don't use Chase or Amex till further notice. Citizens One is aware and the the credit check is a hard inquiry still if you try.

Longer: I'll save the horrible in-store experience story, but after getting home (I ended up doing ATT Next, I can return and swap later if things change... May just buy it outright) I called Citizens One:

Currently -any- Chase visa card is not eligible for the program and neither is American Express. Irrelevant of Personal or Commercial. They are looking into it and taking "all feedback down". They expect to know more in 24 hours and will be calling me back. I'll update once the supervisor calls. To be honest, super friendly and short hold time.

Thank you so much for this update!!! This is awesome. I plan on calling them tomorrow as well, I used two different cc's and both did not work. And I have never been denied for any credit cards or loans before... Please keep us posted as I will do the same.

 

[Ron Johnson]

I doubt "many people are getting declined" because their card has less than 3 months payments credit limit???

That's $150 tops!

I can tell you from experience today

- No company CC even if you own the company and your name is on the card

- No debit cards even if you have enough in that account to pay for 150 months of payments.

A debit card is not a credit card.

Debit cards allow bank customers to spend money that they have by drawing on funds that they deposited with the card provider. Credit cards allow consumers to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash.

that is why you need a credit card. And your right a company credit card is not a personal credit card even if it has your name on it.

Should have said one reason people may be getting declined. Because not everyone is necessarily aware of that. There is also issues of people not verifying the information in the "autofill" section. Needs to match the billing address correctly. There are fraud protection people have enabled on themselves as well which will not allow credit checks etc.

 

[OnlyGerman]

Am i the only one who misses 2 year contracts??? Never realized that apple.com went to ATT next only.

 

[JodyK]

You will also need a valid U.S. personal credit card. Debit cards and prepaid cards are not accepted.

taken from the website. Your right you did have issues, you. thats it.

Stupid policy first of all. I bought a house was approved and they didn't say oh we need a personal credit card on file. Multiple cars over the years ... No card needed. I have worked in the financial sector ... You are approved for credit based on credit scores which are factored by previous payment history, debt load, credit balance and debt ratios.

I am good on all fronts. Never missed a payment ever. Could go out tomorrow and get a 80k car loan. They don't ask for a payment method on file. They hand u the keys of a mobile asset that can be hidden, crashed, damaged Etc and send u a bill. A bill which folks will great credit will always pay. So no one in their right minds who is familiar with credit would expect such when buying a 1k or less smartphone.

 

[JodyK]

You will also need a valid U.S. personal credit card. Debit cards and prepaid cards are not accepted.

taken from the website. Your right you did have issues, you. thats it.

How stupid do you think people are in this forum??

Everyone here knows the difference between a credit card and a debit card.

I was replying to your post saying many people would get declined because their credit card didn't have a $150 credit limit left. I am sure there are a few people who don't realize their card is maxed but most know what there balances are and aren't going to try and use their card if it's maxed.

 

[Ron Johnson]

Stupid policy first of all. I bought a house was approved and they didn't say oh we need a personal credit card on file. Multiple cars over the years ... No card needed. I have worked in the financial sector ... You are approved for credit based on credit scores which are factored by previous payment history, debt load, credit balance and debt ratios.

I am good on all fronts. Never missed a payment ever. Could go out tomorrow and get a 80k car loan. They don't ask for a payment method on file. They hand u the keys of a mobile asset that can be hidden, crashed, damaged Etc and send u a bill. A bill which folks will great credit will always pay. So no one in their right minds who is familiar with credit would expect such when buying a 1k or less smartphone.

Is that car or house getting billed to that credit card every month? When you buy items like that they verify your identity in other ways, such as your job etc. Would you finance a phone to millions of people without a secure way to ensure you are going to get your money? Its called good business practice and financial security. Its not only approving your credit, but your credit card essentially. Unfortunately there is a lot of fraud out there, and A LOT of people trying to buy iphones with stolen accounts and socials and cards.

 

[bpeeps]

And you do realize that paying the entire thing in cash or all at once does nothing for your credit score nor FICO score, correct?

BL.

You're killing all of the responses in this thread.

 

[Ron Johnson]

How stupid do you think people are in this forum??

Everyone here knows the difference between a credit card and a debit card.

I was replying to your post saying many people would get declined because their credit card didn't have a $150 credit limit left. I am sure there are a few people who don't realize their card is maxed but most know what there balances are and aren't going to try and use their card if it's maxed.

Considering you quoted the wrong post and I was referencing this statement in that response, pretty stupid.

"I can tell you from experience today

- No company CC even if you own the company and your name is on the card

- No debit cards even if you have enough in that account to pay for 150 months of payments."


When the website says you need a personal credit card and can't use a debit card and thats what you tried to pay with and come here to complain about your mistakes that is pretty stupid.