Your Apple Card Limit May Be Too Low to Buy an IPhone
The highly anticipated Apple Card has an application process that can be completed on your iPhone in minutes. Not only is it fast – it is open to a wide range of credit histories as soon as it becomes available to the general public later this month.
This means that you can probably get approval for this card if you have a credit rating above 600 or so. But if you’re planning to apply for a card to get a discount on Apple products – this is where the best 3% card cash back reward can be found – you might not be enough if your credit isn’t big.
CNBC spoke to one new Apple Card customer who said his FICO credit rating is around 620. He was surprised to get the approval, suggesting that Goldman Sachs, Apple’s card partner, would be more choosy.
As it turns out, there is a catch. He got approval to use the Apple Card, but he only had a $ 750 credit limit. While he said the interest rate is about 24% lower than the other card he wears, it is higher than the money-back average of about 20% . A low credit limit can protect you from excessive debt, but it will only last if you hope to use it to fund the latest Apple products. The iPhone X starts at $ 999 and the latest MacBook Air starts at $ 1,099.
According to CNBC, the Apple Card was created with customers in mind. Creating a customer-friendly experience means that as many of them as possible will be given access to this new payment method, Apple said. This invitation to convenience and benefits also allows money to be spent.
In addition to secured credit cards that require a deposit, there are options for people with bad credit to rebuild their history with an unsecured credit card. But they come at a price: usually an interest rate of 20-30% and a return rate of about 1%. This makes the Apple Card, with its variable interest rate of 23.99% and its rewards for Apple products and apps, attractive. But don’t expect this to be your ticket to a bunch of new electronic toys if your credit history isn’t shining.