Everyone is getting in on the credit card game and yesterday Apple joined the fight with its brand-new Apple Card. At first glance, it looks as good as you’d expect a product from the world’s richest company: stylishly designed, its sleek and minimalistic (not even a credit card number!), and odds are heads will turn when you pull this baby out of your wallet. But how are its perks?
Apple’s Credit Card: What We Know
According to Apple’s website, which boasts the upcoming release of the card as summer 2019, the Apple Card will be fee-free. That’s right, fee-free. That means no:
- Annual fees
- Overlimit fees
- International transaction fees
- Late payment fees
These aren’t exactly groundbreaking within the travel card community, but the lack of late payment fee is nice if you’re like me and occasionally happen to be on an airplane when your payment comes due.
Apple’s earning structure is interesting. Obviously, they’re favoring themselves here, as evidenced by the 3% cash back offered on all Apple purchases. Other than that, you earn 2% cash back on all Apple Pay purchases and 1% on every purchase made with the physical Apple Card.
Rewards are called Daily Cash – and they’re exactly that. Every day the amount you’ve earned is transferred to your Apple Cash account for you to use. It’s simple and easy.
Comparing the Apple Card to other cards
This card sits solidly in the middle ground in terms of no-fee credit cards. Some competitors include:
- Citi Double Cash Card: offers 1% cash back on spend and 1% upon payment, for a flat 2% on every purchase.
- Capital One Savor One Cash Rewards Credit Card: earns 3% cash back on dining and entertainment, 2% on groceries, and 1% on everything else.
- Chase Freedom Unlimited: earns a flat 1.5% on every purchase. Notably, rewards come in the form of Ultimate Rewards points, which means that possessing one of three other Chase cards (Chase Sapphire Preferred, Chase Sapphire Reserve, or Ink Business Preferred Credit Card) turns your flat cash back into fully usable Ultimate Rewards points, allowing you to transfer to one of Chase’s many travel partners in order to redeem outsized value.
Who Is This Card For?
While this card isn’t a game changer for most, there are a few people who could do well to sign up for the Apple Card. First, Apple enthusiasts would do well with the 3% cash back on all their different MacBook/iPad/iPhone purchases. Second, those who are interested in the idea of a rewards earning card but balk at paying annual fees could do worse- especially if they’re keen to use Apple Pay, which puts this card at the forefront of no-fee cash back earning cards. Its only real competitors are similar no-fee cards like the Citi Double Cash Card, which offers 1% cash back on spend and 1% upon payment
Is anyone here looking to sign up for the card? Sound off below!
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I just want to know how this fits into the Cult of Apple 🙂
This is probably the worst card available when it comes to any type of rewards.
Only fools will carry this card on their wallets.
I dunno. Worst card ever? That’s a pretty high (low) bar!!! :-). I do agree though it’s not one that I think makes sense for the vast majority of (if not all) people
Not sure how you can call 2% on Apple Pay “worst card available”. At least makes it pretty much par with Citi DoubleCash (assuming you can use ApplePay interchangeably for all transactions), which is a very fine card.
No “Late payment fees”
well what else you want?