Good Credit Is Optional With the Apple Card

Posted on August 9, 2019 by Mehedi Hassan in Apple with 25 Comments

Apple started rolling out it’s much talked about credit card, the Apple Card, earlier this week. The company is expected to launch the new credit card broadly later this month for all iPhone users in the United States.

Some users around the country have already started getting invites to try out the new Apple Card, which Apple built in partnership with Goldman Sachs, which Apple had called a “different kind” of partner during the launch of the card. All Apple Card applications require to be first approved by Goldman Sachs, but Apple’s reportedly wanted Goldman to approve as many of the interested customers, even if they have a low credit score.

CNBC is reporting that Apple wanted as many of its 100m+ iPhone owners in the United States to be able to acquire the Apple Card. The publication pointed to Apple founder Steve Jobs’ earlier plans of making a credit card product back in 1990s where he didn’t want the firm to reject any of the interested customers of the card, which was never publicly launched.

Goldman Sachs is reportedly approving customers with credit card scores as low as 620. And that’s obviously a big deal because you would think Goldman would only be interested in providing credit cards to people with high or at least decent levels of credit scores. Some early customers of the Apple Card were even shocked to have their application approved because of their subprime credit scores.

There is, obviously, a catch. If you have a low credit score, you are going to have a low credit limit, and a high-interest rate to go along with it. For a customer with a FICO score of 620, Apple Card set a credit limit of $750 with an interest rate of 23.99%, for example.

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Comments (25)

25 responses to “Good Credit Is Optional With the Apple Card”

  1. glenn8878

    High interest rates is what makes customers avoid paying bills. Balances just snowball. Unfortunately, 23.99% is only 4% worst than typical interest rates for better credit scoring customers.

    • nbplopes

      In reply to glenn8878:

      Yeah. That reasoning just busted a few years ago. And it’s coming back . Guess with whom ... GS

      If you want a deterrent, do not lend money bellow a specific credit score, period. Increasing the risk of default is not the answer.

      • lvthunder

        In reply to nbplopes:

        If that were to happen the race hustlers would call these companies racists. Then the government will pass laws that force you to give low credit score people credit like they did with the mortgage companies.

  2. daf42

    Are people really this stupid?

  3. waethorn

    Because their sales are lagging, and this is no longer Steve Jobs' Apple.

  4. bob_shutts

    I read above the the Apple Card never launched in the 1990s. Funny, I had some kind of Apple credit card then. I remember it well--white with the rainbow logo. Maybe it was a card launched by an Apple partner? I just looked it up in Google images and you can see there where several versions of it.

  5. Tony Barrett

    This is a dangerous game Apple are playing. They're already fleecing their customers with ever increasing handset prices, and now trying to push their services harder than ever to generate more non-hardware revenue. Now they're just adding yet another reason for iPhone users to remain loyal to them and lock them in as this CC only works with iPhone. The fact they're trying to entice people, even with lower credit ratings, is just going to feed Apple's bank account, but push customers further into debt. Even the design of this card is meant to look exclusive, high end and to make people want them. It's terrible really, and quite a shocking move. As a credit card, there's nothing really special about it otherwise.

    • lvthunder

      In reply to ghostrider:

      Actually it has features that show you how much you are spending. How many other cards send you a notice saying you spent $xx this week. It also gives me a better description of the vendor then my other credit cards do as well. I also got a better interest rate through Apple then my other cards as well. Now maybe my others cards are the best around, but Apple's card is better then them. The other cards I have is the Southwest Visa card through Chase bank and the Delta Card through American Express.

    • nbplopes

      In reply to ghostrider:

      Hooks like this is not the way to keep people loyal. Take for instance marriage.

    • Jhambi

      In reply to ghostrider:

      I agree. Folks will look back at this years from now as when Apple started to loose their way...

  6. wright_is

    Interesting, over here, you either get a card or you don't. The interest rate charged for the card has to be published on all material, including the contract, which precludes upping the interest rate for specific customers. There again, credit cards have to be cleared 100% at the end of the month, the money is debited from your bank account, any excess then goes on your current account overdraught.

    For a non-American, what is the range of credit scores? They are not transparent in Germany, Schufa provides companies with a credit rating, but you generally don't get to see your score.

    • evox81

      In reply to wright_is:

      As for your question about range of credit scores, anything below 550 is considered "bad", with the minimum being as low as 300, iirc, depending on the credit bureau. 550-650 is poor. 650-700 is fair. 700-750 is good. 750-~850 is excellent.

    • captobie

      In reply to wright_is:

      Here they publish the maximum interest rate. There's nothing that says they can't actually give you a lower rate, they just can't exceed the maximum. In fact, the best way to lower your interest rate is to call the credit card company and tell them you want to cancel your card. They will almost always offer you a lower rate as an enticement to keep the card.

  7. codymesh

    it costs money to be poor.

    • DLF

      In reply to codymesh:

      Ahh, the moneychangers. "It takes money to make money, y'know." "If you're actually in NEED OF a loan, you aren't eligible to actually GET a loan." No wonder Jesus loved 'em....

  8. RonV42

    My Costco card is my gateway to the world.

  9. skane2600

    The irony of higher interest rates for people who have poor credit scores is that they're the least able to pay them, thus increasing the probability of a default.

  10. MikeGalos

    Apple Card, prestige status for anyone who wants it.

  11. lvthunder

    How long before Apple is accused of being a predatory lender for giving people with low credit scores a credit card with a high interest rate?