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It’s not every day that a new credit card makes national news, but that’s exactly what happened today when Apple announced its new “Apple Card” credit card. Considering this is a credit card from the company that essentially invented the personal computer, revolutionized the smartphone and changed how we listen to music it’s no wonder people are eager to learn what they have up their sleeve.
Here is what Apple has revealed so far:
- There will be a physical “Apple Card” but it won’t have a credit card number, CVV, expiration date, or signature on the back (that information will be stored in the Apple Wallet app).
- People will be able to sign-up for the Apple Card directly on their iPhone in the Apple Wallet app where the digital card will live. It’s a process that Apple says will happen within minutes. That’s right, apply for a credit card and get it within minutes.
- The app will be used to track purchases, check balances, and see when a bill is due (pretty standard stuff for a credit card app).
- The rewards program will work like this: Apple Card will use rewards in the form of “Daily Cash” which will be applied directly toward a person’s spend on the card daily. Apple is offering 2% cash back on purchases made using Apple Pay, 3% cash back on direct Apple purchases and 1% on purchases made using the physical card.
- Apple is partnering with Goldman Sachs (its issuing bank) and Mastercard (who will process charges) on this.
- Apple is promising “no late fees, no annual fees, no international fees, and no over limit fees” with the Apple Card and “lower interest rates” with no penalties for missing payments, with APR rates ranging from 13.24% to 24.24% depending on a person’s credit rating.
- The big selling point according to Apple is the privacy that the card allows for. “Apple doesn’t know what you bought, where you bought it, and how much you paid for it,” said Jennifer Bailey, VP of Apple Pay said at the launch event. Per Apple, spending data gets stored directly on a person’s device not on Apple’s servers. Purchases will be authenticated with Face ID or Touch ID which will likely cut down on fraud.
- It’s expected to launch sometime this summer, likely July or August.
Now, there’s certainly a lot to be excited about when it comes to the Apple Card but critics are starting to point out what’s not so great about it. For one, there is no sign-up bonus. The card also doesn’t come with a host of perks that many credit cards do these days like free airport lounge access or trip cancellation insurance. The rewards program isn’t terrible, but many are pointing out the myriad of cards that do better in this area. And, unless you have sterling credit and pay off your credit cards in full every month, expect to get stuck with an interest rate on the higher side of things.
There’s still a lot to learn about the Apple Card, so watch this space.
Feature Image: Courtesy of Apple
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