Buzz
Apple's new credit card, dubbed the Apple Card, was introduced this spring, though it’s not yet accessible to everyone. The card’s rollout began this week. While a fortunate few (selected via a random drawing from those who signed up for the waiting list) start using the card, let’s evaluate how it compares to other available options. Sure, the Apple Card is cutting-edge and stylish, but does it deserve to replace your other cards in your wallet?
The Advantages of the Apple Card
The Application Process
Applying for the Apple Card takes just a few minutes. You’ll know your interest rate and credit limit before accepting the card, and Apple assures that your credit score won’t be affected until you officially accept.
Once approved, you can start using the Apple Card on your iOS device wherever Apple Pay is accepted, and you can immediately begin using it through the Wallet app.
Billing and Rewards
The Apple Card automatically organizes and color-codes your purchases by type within the Wallet app. It also provides a map showing where you made each purchase. You can view spending summaries by week, month, day, or category.
You earn 3% cash back on Apple purchases, including things like Apple Music or games. With Apple Pay purchases, you earn 2%, and for all other purchases, you get 1%. Unlike traditional credit cards, cash back is credited daily, so you won’t have to wait for the end of the billing cycle to see the rewards. You can decide to send your rewards to your card, transfer it to a friend via iMessage, or deposit it directly into your bank account.
There’s no cap on the cash back you can earn, but you must have an Apple Cash card in your Wallet to receive daily deposits.
If you don’t pay your bill in full, you’ll get an estimate of the interest you’ll owe based on how much you pay.
Apple Card has no annual fee, and there are no late payment fees, cash-advance fees, international transaction fees, over-limit fees, or returned payment fees.
It’s also a visual delight! The physical card has a substantial feel and a minimalist design that’s perfect for design enthusiasts. As Mytour’s Senior Tech Editor David Murphy noted, the color of the virtual card in your Apple Wallet changes depending on your spending categories.
Security and Privacy
You can flag fraudulent charges directly from the Apple Wallet, and Apple ensures you can get answers to your inquiries “24/7 by texting” instead of needing to call.
Apple Card requires either Face ID or Touch ID to authorize purchases and pairs a one-time security code with your device number for each transaction. The physical card doesn’t display any numbers or security codes—only your name. Your Wallet app stores a virtual card number to use for online purchases on sites that don’t support Apple Pay.
According to Apple, its card administrator Goldman Sachs will “use your data to operate Apple Card,” but it makes it clear that “they will never share or sell your data to third parties for marketing or advertising purposes.”
The Downsides of the Apple Card
Interest Rates and Rewards
Your interest rate varies based on your credit history, ranging from 12.99% to 23.99%. This is competitive with most credit cards, but if you’re searching for the lowest rates, a credit union might offer a better option.
Unless you’re highly invested in the Apple ecosystem and confident you’ll often earn that 3% cash back, other cards may provide better rewards. For example, the Chase Freedom card offers 3% cash back on all purchases (up to $20,000 spent), and the Discover It card offers rotating categories with 5% cash back each quarter.
At the moment, your Apple Card activity doesn’t sync with any budgeting apps, which could be a limitation for those who rely on such tools.
The Apple Ecosystem
This card is only useful for iOS users. You need a compatible iPhone with Face ID or Touch ID and the latest iOS version. The iPhone 5s is not supported.
If you’re trying to minimize screen time, this might not be the ideal choice for you. There’s no desktop version for reviewing your account or spending data—everything is app-based.
The Final Verdict on Apple Card
If you're an Apple enthusiast who prefers using your phone over a physical wallet, applying for the Apple Card is a good option. However, if you're simply looking for another rewards card, you might want to look elsewhere. Traditional cash-back cards are likely to offer a higher rewards rate on all your spending, including Apple products and apps. Don't expect to see the Apple Card topping any “best cash-back cards” lists anytime soon.
