Apple just released its own credit card and it looks quite good on paper. There are no late or international fees, you get up to 3% cash back paid on a daily basis, and the card is made of titanium. In case this new card sounds like something you would love to have, there are a few things you will need to know first. Let’s start with the basic question, “How can you qualify?” First, you will need an iPhone. In addition to this, you could need credit too. Apple hasn’t revealed the credit score range you will need in order to qualify. But we know that people who have lower credit scores will be exposed to high interest rates.
The Apple Card will be issued by Goldman Sachs and the payments will be processed by MasterCard. Once the card is released this summer, customers will have the chance to apply by using the Wallet app on the iPhone. So, how do you use this card? The Apple Card can be used in a number of ways. You can choose it as a payment source. This means that the card will be usable in all places where you can use Apple Pay.
Apple Card also works like your regular chip credit card. Despite this, it will not be able to support contactless payments. The card doesn’t have numbers or an expiration date on it either. It uses a magnetic strip and a chip for verifying identity. The question for most people though is this, “Why use these cards?” What are the benefits? The Apple Card offers a 2% cash back on purchases you make with Apple Pay. You can also get up to 3% cash back when you buy Apple products including services like Apple News Plus, Apple Music, iCloud etc.
Apple Card is not the only one in the market. Tech companies like Uber and Amazon have also been offering their own cards in recent months. The bad thing is that Apple Card lags behind in terms of perks. For example, the Amazon Card offers you 5% cash back on all purchases made on Amazon. You will also be given a $50 gift card when you register. Uber offers 4% cash back on all dining. The ride-hailing service will also offer you $100 back when you spend more than $500.
A lot of experts feel that the 3% cash back that Apple is offering is underwhelming and this may push potential customers away. Some experts have also argued that the interest rates offered by Apple are not any different compared to its competitors. In that case, it’s very hard to see how the card will revolutionize the industry as Apple claimed when it announced it. But it could offer some good benefits for people who buy a lot of Apple products. Despite these issues, the smartphone giant is moving forward with the launch. Applications will be opened in the summer of 2019 but the cards won’t be operational until a few months later.