Apple launched a new credit card, and even though it’s not an innovative product, it’s definitely a competitor for credit card dominance – for iPhone users. The successful launch of Apple’s website and events in Cupertino, California on March 25, made the card a weapon against high credit card debt without offering a debt reduction tool.
The Apple Vice President Pay Jennifer Bailey initially referring to the annual rates on the card and said it was “very competitive.” applicant. The fine print on Apple Card’s legal page lists the APR as a variable 13.24%-24.24%, depending on the creditworthiness of the applicant.
The Apple Card Review
How competitive is that?
The APR of the credit cards which is 13.24% -24.24% is valued quite low. The lower end of the range is not the lowest there, but close. The Card is not available yet. So who knows what will happen next after the card comes out this summer?
Statement of a new Apple Card, another general price card, Barclaycard Visa with Apple Rewards has 16.24%, 22.24%, or 28.99% APR. So if you look at the Apple Card Awards and comparable price cards, APR is lower than its competitions.
The following is a closer view:
The Apple Card offers 3% cash every day for purchases from Apple and 2% cash every day for purchases on Apple Pay. Other purchases without Apple Pay get 1% of the daily allowance. The main competitor of this reward is Citi Double Cash Card, which gives 1% cashback on purchases and 1% bills. Citi Double Cash has an annual interest rate of 15.74% to 25.74% APR variable for purchases.
However, this is still two digits, which compounds interest. Whether you pay 13.24% or 15.74%, it is not feasible to use for purchase based 2% or 3% cashback. And that is when you have very good credit. Lower credit card holders pay higher rates.
What are the other features of the Apple Card?
Apple also highlights the card as “the first credit card that actually encourages you to pay less interest”. It claims three is a slider functionality within the Apple Wallet that enables you to see what you can save when paying more from your card balance.
It’s nice to have this interactive feature in your credit card statement. This is not revolutionary because you understand the same thing with the help of an online credit card calculator. However, using debt tools and information in one place can make decision-making easier for credit card payments. It also has a beautiful design that most credit card calculators don’t have.