The Apple Mastercard was released in 2019 and has become a fairly popular credit card for Apple fans. Issued in partnership with Goldman Sachs, the card has zero fees (no annual, over-the-limit, foreign-transaction, or late fees). Apple claims to have some of the lowest interest rates in the industry. The interest part is mostly irrelevant because all credit card users should always pay their balance in full, on time, every time. However, this card may help people build healthy habits, especially the younger crowd. Experienced credit card aficionados may want to look elsewhere.
FEATURES AT A GLANCE
- No annual fee
- No foreign transaction fees
- 2% cash back when using Apple Pay (iPhone or Apple Watch) except for select stores which earn 3% cash back, including Apple purchases
- 1% cash back on everything else
- Metal card (titanium)
SIGN UP BONUS
This card doesn’t currently have a sign-up bonus or other introductory offers.
In November 2021, it offered a $75 bonus for making a Nike purchase within 30 days of opening the card.
OTHER BENEFITS OF THE APPLE CARD
- Some Mastercard World Elite benefits (limited by Apple)
- No late fees or over-the-limit fees
- Apple Card Family
- Apple Card Monthly Installments
- Transactions authorized with Face ID, Touch ID, or passcodes
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 600+
Apple (Goldman Sachs) uses TransUnion credit reports for hard pulls.
The Apple card is only available to people who have eligible Apple devices (with an Apple ID). Aside from that, almost anyone can apply for the card. There’s an added benefit of Apple only doing a soft inquiry for pre-approval. If you might get denied, you can find out quickly before officially applying for the card. They also have a “Path to Apple Card” program which will give tips on how to increase your credit score if you aren’t initially approved. Completing the program will allow you to reapply and likely become approved for the Apple Card.
MAXIMIZING REWARDS WITH THE APPLE CARD
As of December 2021, Apple currently offers 3% cash back for the following stores when using Apple Pay: Apple, Nike, Panera, Walgreens, T-Mobile, Exxon-Mobil. This is subject to change without notice, aside from Apple purchases.
Cash back can be used as cash, so there aren’t any special strategies to maximize rewards. Just pay with your iPhone or iWatch as much as possible to get the 2% or 3% cash back rates. One of the benefits is getting all cash back immediately instead of waiting for a monthly statement to close out. Avoid using the physical card because of its low 1% cash back earn rate.
You can reportedly get the Apple card without a hard pull on your credit report. Once you initially prequalify with the soft pull, you can freeze your TransUnion, then apply for the card. Some people say this hack allows you to get approved without a hard pull.
ALTERNATIVES TO THE APPLE CARD
Over a dozen credit cards can earn 2% cash back (or more) on all purchases, so the Apple card is weak in comparison. Requiring Apple Pay for the 2% cash back rate makes sense for Apple (more money for them) but doesn’t make sense for consumers. You can get any of the best everyday cards instead. This gets around any requirements.
Apple Pay isn’t accepted everywhere, either, which may force people to earn 1% cash back instead of the 2% rate. Cutting people’s cash back in half for something outside of their control isn’t ideal. Two cards are vastly superior for mobile wallets: the U.S. Bank Altitude Reserve (earning up to 4.5% cash back) and the Kroger Family Mastercard (earning up to 5% cash back). If you’re going to tie your payments to a mobile wallet, why not get more than double the cash back with a non-Apple card?
For Apple’s temporary store bonuses where you can earn 3% cash back instead of 2%, a number of cards already give up to 5% cash back. For example, instead of getting 3% at Exxon using Apple Pay, you can open the Abound credit card for 5% cash back at ANY gas station (regardless of whether you use a mobile wallet). Any of the best gas cards will work.
CONCLUSION
The Apple card does have cool-looking features, although many of these were already available on other cards. It’s definitely a friendly-looking card and Apple does try to keep things simple. The benefits, however, are otherwise limited. Despite Apple positioning this as a premium product (as all Apple products are positioned) it’s easy to get and doesn’t have significant premium benefits. The card being metal isn’t even a good feature, since there’s little point in using it for real-life transactions. Apple Pay is necessary if you want to maximize the card. Customers are incentivized to leave the card at home where no one can see it.
For anyone who wants luxury benefits, other cards offer more, like the American Express Platinum. For anyone who wants simple cash back earnings, general cards have fewer hoops to jump through. For anyone who likes mobile wallet payments, other cards earn more.
It’s difficult to justify the Apple card for anyone who’s a responsible experienced credit card user. Even though it has a slick appearance, the Apple card is underwhelming. The card starts to fall apart under close scrutiny. It may work well for some people, but in terms of cost-benefit analysis, it’s hardly best-in-class outside of niche uses. This is primarily a beginner card for people who are new to credit. Apple is decent as an alternative to options like Petal cards. It can effectively help people build credit and learn how to manage cards responsibly.
If you’ve never had a credit card, Apple is a good first choice. Otherwise, you may want to look elsewhere.
We rate the Apple card 2 out of 5 stars. ⭐⭐
Note: This review was last updated in February 2022. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to take advantage of our personalized consulting services!