iPhone upgrade program - loan questions.

[NitromanseR]

Hello everyone,

I have a few questions about the iPhone upgrade program offered by Apple in the US:

1) From my understanding it is considered a loan. So, if I let's say decide to make a payment of $200 two months after the purchase of the iPhone, will this money go towards the principal or the upcoming payments?
2) Is there an on-line account I create somewhere to make the payments and manage the loan (like Apple website for example)?
3) Will I be able to change the statement day? If, for example, I buy it on the 15th of the month, can I move the payment schedule to the 1st? I do that with all my bills for convenience.
4) When I go for the upgrade after 12 months, will I get a credit check again? I don't want a credit hit per year.

Thank you for your time!

 

[timeconsumer]

Hello everyone,

I have a few questions about the iPhone upgrade program offered by Apple in the US:

1) From my understanding it is considered a loan. So, if I let's say decide to make a payment of $200 two months after the purchase of the iPhone, will this money go towards the principal or the upcoming payments?
2) Is there an on-line account I create somewhere to make the payments and manage the loan (like Apple website for example)?
3) Will I be able to change the statement day? If, for example, I buy it on the 15th of the month, can I move the payment schedule to the 1st? I do that with all my bills for convenience.
4) When I go for the upgrade after 12 months, will I get a credit check again? I don't want a credit hit per year.

Thank you for your time!

I would recommend reading this: http://www.apple.com/legal/sales-support/iphoneupgrade_us/

1) I would think that the $200 would go towards the principal and you'd continue the agreed upon monthly payment. But by paying extra you would qualify faster for the upgrade options.
2) Not sure
3) Not sure
4) Yes, it's possible there could be another credit check as you're "applying for and entering a new 24-month 0% APR installment loan" as per:

1. Exercising your Upgrade Option. To exercise your Upgrade Option you must:
   • Trade in your Financed iPhone in good physical and operational condition, as directed by Apple; and
   • Enroll in a new iPhone Upgrade Program which includes applying for and entering into a new 24-month 0% APR installment loan (“New Installment Loan”) with Bank.

 

[Mlrollin91]

Hello everyone,

I have a few questions about the iPhone upgrade program offered by Apple in the US:

1) From my understanding it is considered a loan. So, if I let's say decide to make a payment of $200 two months after the purchase of the iPhone, will this money go towards the principal or the upcoming payments?
2) Is there an on-line account I create somewhere to make the payments and manage the loan (like Apple website for example)?
3) Will I be able to change the statement day? If, for example, I buy it on the 15th of the month, can I move the payment schedule to the 1st? I do that with all my bills for convenience.
4) When I go for the upgrade after 12 months, will I get a credit check again? I don't want a credit hit per year.

Thank you for your time!

1) Anything paid extra after the current monthly payment will be applied to principle. For example, your payment is 35 and you pay 200. 35 will cover the current bill and 165 will come off of principle. It will not reduce future monthly payments.

2) You can create an online account with Citizens One. Via this account you can change payment method and make additional payments.

3) You cannot change payment date. It is the date you purchased the iPhone.

4) As of now we don't know about a future credit check. I would assume so because you are applying for a new loan, but its possible it won't because you have already established credit with them.

 

[Newtons Apple]

I think there is little doubt they would be pulling another hard credit check.

 

[Mlrollin91]

I think there is little doubt they would be pulling another hard credit check.

I honestly don't know. I was told 3 times by 3 different people that the initial one would be a soft pull only and I was hit by a hard pull.

 

[Newtons Apple]

I honestly don't know. I was told 3 times by 3 different people that the initial one would be a soft pull only and I was hit by a hard pull.

I am afraid that they need to count on a hard pull and hope it is soft. I would never allow this but I know some like this program.

 

[NitromanseR]

Thank you all for the replies!