Should I Get an Apple and Goldman Sachs Credit Card?
Apple and Goldman Sachs will launch a joint credit card this spring, according to the Wall Street Journal . The card is expected to be paired with new Apple Wallet features that will allow cardholders to “set spending goals, track their rewards and manage their balances.”
The magazine says that the card that will use the Mastercard payment network will offer two percent back on “most” purchases, in accordance with bonus cards currently offered by other financial institutions and possibly other discounts on Apple products. The magazine first reported the partnership last year.
Ariel O’Shea, personal finance expert at NerdWallet, says the partnership shows Goldman is trying to attract millennial clients to expand its consumer base. But that doesn’t mean the card is necessarily the best choice for this generation.
“Given that millennials tend to value experience and travel the most, they may still be attracted to travel reward cards despite Apple’s powerful brand,” O’Shea wrote in an email. “Even the biggest Apple fans shouldn’t be blind to this card: it’s important to compare annual fees and specifications when purchasing a new card and make sure the card matches your spending habits.”
Apple currently offers Barclaycard Visa with an Apple Rewards co-branded card, which allows cardholders to fund select Apple products and earn points on purchases. There is no annual fee for it. The downside, as Inverse notes , is that while it advertises an initial 0% annual interest rate, it’s actually a deferred interest scenario that you can only learn about from the small print.
Another disadvantage of Barclaycard is that you cannot redeem points for cash. According to NerdWallet , you receive gift cards for either Apple or iTunes. The point conversion for the new card is not clear from the WSJ article, so watch out for this no matter how much you spend on Apple or iTunes purchases.
There are other bonus cards currently offering a two percent return on most purchases, including Citi Double Cash. The Wells Fargo Cash Wise card returns 1.5% of the value of all purchases to cardholders, while the Capital One Savor * card offers a 3% return on lunch, two percent on groceries, and one percent on everything else.
You can use sites like NerdWallet or Wallethub to explore the pros and cons of bonus cards. Just be sure to read the fine print, check for fees, and make sure your credit score hasn’t been hit lately. Reward cards generally require higher scores for approval.
* Full Disclosure: I have a Capital One Savor card.