Kat Tretina
May 15, 2019
• 5 Minute Read
Apple has a cult following; their phones and tablets have a devoted fanbase. Every new release is greeted by long lines and record sales. But now Apple is entering a whole new space: credit cards.
On March 25, 2019, Apple announced that they were launching a new credit card in partnership with Goldman Sachs and Mastercard. The announcement created tons of buzz in the finance communities, and the card is expected to be available in the summer. But before you submit your application, it’s important to understand what the Apple Card offers.
What makes the Apple Card different
The Apple Card will be linked to the Apple Wallet app on iPhones, streamlining your experience with Apple Pay. You can sign up for the Apple Card and start using it right away in stores, online, or through the app.
In addition, it gives you real-time views of your latest transactions. And, if you need help, you can contact customer support via text message directly through the app.
Apple will offer users a titanium card for shopping at retailers that don’t accept Apple Pay, yet. The titanium card has no credit card number, security code, or expiration date, making it more secure than other cards.
Rewards
The Apple Card’s approach to rewards is different than that of other credit cards. Rather than earning points, you’ll get a percentage of every Apple Card purchase back as Daily Cash. Unlike cash back reward programs on other cards, Daily Cash is added to your account each day, and can be used right away. You can use it to complete purchases, get a statement credit, or even send it to friends and family.
Purchases made directly through Apple — such as the App Store — will give you 3% Daily Cash. When you use the Apple Card through Apple Pay, you’ll get 2% Daily Cash. If you use the titanium version at brick-and-mortar stores, you’ll earn 1% Daily Cash on your purchases.
Benefits
The Apple Card is putting its focus on user experience. Through the app, you’ll get weekly and monthly summaries of your spending so you can spot trends and adjust your budget accordingly. It’s also one of the first apps that will encourage you to pay as little interest as possible; it will show you how much interest you’d pay at different payment levels, motivating you to pay more than the minimum payment.
Terms and Fees
Unlike many credit cards, the Apple Card boasts no fees. There are no annual fees, late, international, or over-the-limit fees. The company said in a press release that they plan to offer interest rates that are among the lowest in the industry. And, if you miss a payment, you won’t be charged a penalty rate.
How to apply for the Apple Card
Expected to launch this summer, you can’t apply for the Apple Card just yet. However, you can sign up for notifications and get an alert when the application is available on Apple.com/apple-card.
Alternatives to the Apple Card
The Apple Card’s concept is interesting. However, it appeals to a very niche audience: users who are Apple devotees who use their iPhones and Apple Pay. If you don’t use Apple Pay often, or if you’re an Android user, signing up for the Apple Card doesn’t make sense. And, another rewards credit card could offer more value.
For example, the Chase Freedom Unlimited® card offers Unlimited Matched Cash Back. Use your card for all your purchases and at the end of your first year, Chase will automatically match all the cash back you earned! There is no limit to how much you can earn. Every dollar in cash back rewards you earn is a dollar Chase will match.
- Credit Recommended (660-850):
- Good/Excellent
- Rewards Rate 1
- 1.5% - 5% cash back
- Intro (Purchases)
- 0% Intro APR on Purchases 15 months
- Annual Fee
- $0
- Intro Rewards Bonus
- Up to $300 cash back
- Intro (Transfers)
- 0% Intro APR on Balance Transfers 15 months
- Regular APR
- 20.49% - 29.24% Variable
Highlights
- INTRO OFFER: Earn an additional 1.5% cash back on everything you buy (on up to $20,000 spent in the first year) - worth up to $300 cash back!
- Enjoy 6.5% cash back on travel purchased through Chase Travel, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 3% on all other purchases (on up to $20,000 spent in the first year).
- After your first year or $20,000 spent, enjoy 5% cash back on travel purchased through Chase Travel, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1.5% cash back on all other purchases.
- No minimum to redeem for cash back. You can choose to receive a statement credit or direct deposit into most U.S. checking and savings accounts. Cash Back rewards do not expire as long as your account is open!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24%.
- No annual fee – You won't have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Or, consider the Capital One Quicksilver Cash Rewards card. Offering unlimited 1.5% cash back on every purchase, the card has no annual fee. If you spend $500 on new purchases within the first three months of opening an account, you’ll get a $200 signup bonus, a 30% return on spend.
Rate & Fees
*Information for this card not reviewed by or provided by Capital One
Check out the best rewards credit cards of 2019 to find the perfect addition to your wallet.
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