If you’re a die-hard Apple fan with multiple Apple devices, you may have considered getting the Apple Card. This cash back credit card offers up to 3% cash back, with the best rewards for purchases from Apple or when using Apple Pay. But is it really worth it? Let’s take a closer look at how the Apple Card works and whether it suits your spending needs.
TIME’s Take
According to TIME, the Apple Card is a great option if you frequently make purchases from Apple or use Apple Pay. You’ll earn 3% back on Apple purchases, 2% back when using Apple Pay anywhere it’s accepted, and 1% everywhere else. The card has no fees, except for interest charges if you carry a balance. While the 1% rate everywhere else may not be as exciting, it’s still a decent option if you’re already ingrained in the Apple ecosystem.
Who is the Card For?
The Apple Card is best suited for shoppers who regularly use Apple Pay with their Apple Watch or iPhone. It’s also great for Apple subscriptions like Apple TV, Apple Music, and iCloud. If you or your household are fully committed to the Apple ecosystem and frequently buy Apple products from Apple.com or the Apple Store, you’ll get the most out of this card’s rewards.
However, if you don’t frequently use Apple Pay or make purchases from Apple, there are better deals available with other 2% cash back cards like the PayPal credit card or Citi Double Cash. Additionally, if you don’t pay off your balance monthly, the interest charges on the Apple Card may outweigh your rewards, which is common with most rewards cards.
Rewards Structure
The Apple Card features three reward rate tiers based on where and how you shop. The top tier offers a 3% cash back rate on purchases from Apple and select partners like Ace Hardware, Duane Reade, Exxon, Mobil, Nike, Panera Bread, T-Mobile, Uber, Uber Eats, and Walgreens.
The 2% back rate is for any purchase made using Apple Pay. Most large chains, including grocery stores and drugstores, accept Apple Pay, so you can easily take advantage of this rate.
Earning 1% cash back using the physical card everywhere else isn’t extraordinary, but it’s better than nothing. Savvy credit card users can also combine the Apple Card with another cash back card to maximize their overall rewards. Plus, there’s no annual fee associated with the Apple Card.
Additional Hidden Perks
One of the biggest advantages of the Apple Card is its almost non-existent fees. There’s no annual fee, penalty fees, transaction fees, or any other fees, except for interest charges if you carry a balance. Additionally, if you use the card for large Apple purchases, you may qualify for zero interest on those purchases.
You can also make monthly installment payments with no interest when buying qualifying Apple products directly from Apple. You’ll still earn the 3% cash back, and there’s no additional application required. Just choose Apple Card Monthly Installments at checkout.
Apple Card cash back rewards, also known as Daily Cash, are paid out daily. You can use your cash back to lower your credit card balance, deposit it to a linked bank account, or store it with an Apple Cash card for spending wherever Apple Pay is accepted.
What Could Be Improved
While the Apple Card doesn’t have many cons due to its low fees, there are a couple of drawbacks to consider. The 1% cash back rate on purchases made with the physical card is lower compared to other competing cards, so you may be able to earn more with alternative options. Additionally, the card lacks purchase protection and travel insurance benefits, which are essential for many credit card users.
Alternatives to the Apple Credit Card
If the Apple Card doesn’t seem like the right fit for you, here are a few alternatives to consider:
- Chase Freedom Unlimited: Offers 5% back on travel purchased through Chase Ultimate Rewards, 3% on dining, eligible restaurant delivery services, and drugstore purchases, and 1.5% everywhere else.
- Discover it Cash Back: Provides 3% cash back on dining, entertainment, eligible streaming services, and grocery stores, and 1% everywhere else.
- American Express Blue Cash Preferred: Earns 6% back at U.S. supermarkets, 6% back on eligible streaming services, 3% back on transit and U.S. gas stations, and 1% everywhere else.
For more details on these alternatives, please visit Personal Finances Blog.
Frequently Asked Questions (FAQs)
How do I apply for an Apple Card? Applying for the Apple Card is a quick and easy process. Simply visit the Apple Card website and complete the application. It only takes a few minutes if you have your information handy.
Does applying for an Apple Card hurt my credit? No, applying for an Apple Card does not harm your credit score. There’s no impact on your credit unless you accept the offer and sign up for an account.
How can I pay my Apple credit card? The easiest way to pay your Apple Card is through the Apple Wallet app. You can also make payments through the Apple Card website. If your Apple device is not available, you can contact Apple support for assistance. Payments can be made from a connected bank account or your Apple Cash balance.
How can I reach Apple Credit Card customer service? To reach Apple Card customer support, simply call the number on the back of your card. The toll-free number for Apple Card support is currently 877-255-5923.
What are the key things to know about the Apple Card’s cash back program? The Apple Card offers 3% back on purchases from Apple and partner merchants, 2% back using Apple Pay, and 1% everywhere else. Cash back is earned daily and can be used to lower your card balance, increase your Apple Cash balance, or be deposited to a linked bank account.
How can I log in to my Apple Card account online? You can view your Apple Card account online by visiting card.apple.com or using the Apple Wallet app. This allows you to check your balance, payment due dates, Apple purchase installment plan, and other card details.