Good Credit Is Optional With the Apple Card

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.

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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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Conversation 25 comments

  • glenn8878

    09 August, 2019 - 3:07 pm

    <p>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.</p>

    • nbplopes

      11 August, 2019 - 3:58 am

      <blockquote><em><a href="#448379">In reply to glenn8878:</a></em></blockquote><p><br></p><p>Yeah. That reasoning just busted a few years ago. And it’s coming back . Guess with whom … GS</p><p><br></p><p>If you want a deterrent, do not lend money bellow a specific credit score, period. Increasing the risk of default is not the answer.</p>

      • lvthunder

        Premium Member
        12 August, 2019 - 10:50 am

        <blockquote><em><a href="#448681">In reply to nbplopes:</a></em></blockquote><p>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.</p>

  • MikeGalos

    09 August, 2019 - 3:11 pm

    <p>Apple Card, prestige status for anyone who wants it.</p>

  • skane2600

    09 August, 2019 - 4:21 pm

    <p>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.</p>

    • nbplopes

      11 August, 2019 - 3:56 am

      <blockquote><em><a href="#448401">In reply to skane2600:</a></em></blockquote><p><br></p><p>Yeah. Insane. There is a high risk, ok let’s increase it and than we jump in :)</p><p><br></p><p>Crazy. Absolutely crazy.</p>

      • lvthunder

        Premium Member
        12 August, 2019 - 10:48 am

        <blockquote><em><a href="#448680">In reply to nbplopes:</a></em></blockquote><p>That's how credit works. They really should teach this in school.</p>

    • clutem1987

      13 August, 2019 - 7:33 am

      <blockquote><em><a href="#448401">In reply to skane2600:</a></em></blockquote><p>There will always be people who have problems with credit. Whether it’s high interest or low. They will charge it up and not pay their bills regardless of the terms. </p>

  • RonV42

    Premium Member
    09 August, 2019 - 7:38 pm

    <p>My Costco card is my gateway to the world. </p>

  • codymesh

    09 August, 2019 - 11:28 pm

    <p>it costs money to be poor.</p>

    • DLF

      20 August, 2019 - 4:42 pm

      <blockquote><em><a href="#448492">In reply to codymesh:</a></em></blockquote><p><br></p><p>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….</p>

  • wright_is

    Premium Member
    10 August, 2019 - 3:09 am

    <p>Interesting, over here, you either get a card or you don't. <strong><em>The</em></strong> interest rate charged for <strong><em>the</em></strong> 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.</p><p>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.</p>

    • captobie

      11 August, 2019 - 6:17 pm

      <blockquote><em><a href="#448508">In reply to wright_is:</a></em></blockquote><p>Here they publish the <em>maximum</em> 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.</p>

      • wright_is

        Premium Member
        12 August, 2019 - 10:26 am

        <blockquote><em><a href="#448746">In reply to captobie:</a></em></blockquote><p>Over here, you aren't allowed to discriminate like that.</p>

      • lvthunder

        Premium Member
        12 August, 2019 - 10:40 am

        <blockquote><em><a href="#448746">In reply to captobie:</a></em></blockquote><p>All three of my credit cards publish the interest rate range including Apple Card. For Apple Card I believe it is 12.99-24.99.</p>

    • evox81

      Premium Member
      12 August, 2019 - 1:10 pm

      <blockquote><em><a href="#448508">In reply to wright_is:</a></em></blockquote><p>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.</p>

  • Tony Barrett

    10 August, 2019 - 7:44 am

    <p>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 <em>only </em>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.</p>

    • Jhambi

      10 August, 2019 - 1:38 pm

      <blockquote><em><a href="#448532">In reply to ghostrider:</a></em></blockquote><p>I agree. Folks will look back at this years from now as when Apple started to loose their way…</p>

    • nbplopes

      11 August, 2019 - 3:55 am

      <blockquote><em><a href="#448532">In reply to ghostrider:</a></em></blockquote><p><br></p><p>Hooks like this is not the way to keep people loyal. Take for instance marriage.</p>

    • lvthunder

      Premium Member
      12 August, 2019 - 10:47 am

      <blockquote><em><a href="#448532">In reply to ghostrider:</a></em></blockquote><p>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.</p>

  • bob_shutts

    10 August, 2019 - 10:21 am

    <p>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.</p>

    • lvthunder

      Premium Member
      12 August, 2019 - 10:42 am

      <blockquote><em><a href="#448587">In reply to Bob_Shutts:</a></em></blockquote><p>You probably had the Barclays Bank card that Apple offered as a way to finance your Apple Store purchases.</p>

  • waethorn

    10 August, 2019 - 4:43 pm

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

  • daf42

    12 August, 2019 - 4:09 am

    <p>Are people really this stupid? </p>

  • lvthunder

    Premium Member
    12 August, 2019 - 10:41 am

    <p>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?</p>

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