Buzz
Apple and Goldman Sachs are preparing to launch a new credit card this spring, according to a report from the Wall Street Journal. The card is expected to feature integration with new Apple Wallet tools, offering users the ability to set spending targets, monitor rewards, and manage balances.
The Wall Street Journal mentions that the card, which will operate on Mastercard's payment network, promises 2% cashback on most purchases, aligning with other similar rewards cards in the market. There may also be additional discounts available on Apple products. The partnership was initially reported by the Journal last year.
Arielle O'Shea, a personal finance expert at NerdWallet, believes this collaboration demonstrates that Goldman Sachs is aiming to attract millennial customers to expand its consumer base. However, she notes that this doesn't necessarily mean the card is the ideal choice for that demographic.
O'Shea explains, 'Since millennials typically prioritize experiences and travel, they may continue to gravitate toward travel rewards cards, even with Apple's strong brand presence.' She further advises, 'Even the most loyal Apple fans shouldn't rush into choosing this card. It's crucial to compare annual fees and features to ensure it aligns with your spending habits.'
Apple currently offers the Barclaycard Visa with Apple Rewards, a cobranded card that allows users to finance Apple products and earn points on their purchases. It does not charge an annual fee. However, as Inverse pointed out, despite promoting a 0% introductory APR, it’s actually a deferred interest plan, which is only revealed in the fine print.
Another downside of the Barclaycard is that it doesn’t allow point redemption for cash. According to NerdWallet, points can only be exchanged for gift cards for Apple or iTunes. The new card’s point conversion details remain unclear in the Wall Street Journal's report, so it's something to watch, no matter how much you spend at Apple or iTunes.
Other rewards cards, such as the Citi Double Cash, offer 2% back on most purchases. The Wells Fargo Cash Wise card provides 1.5% back on all purchases, while the Capital One Savor card offers 3% back on dining, 2% back on groceries, and 1% back on everything else.
To evaluate rewards cards, you can use platforms like NerdWallet or Wallethub to research their pros and cons. Just make sure to read the fine print, check for hidden fees, and verify that your credit score hasn’t dropped recently, as rewards cards typically require higher scores for approval.
*Full disclosure: I am a holder of the Capital One Savor card.
Stay connected with Mytour by following us on Instagram at @Mytourdotcom.
