For many tech consumers, there are only two types of people in the world: those who use Apple products and those who use other products. We know it’s an oversimplification, but there’s a bit of truth to it. Apple consumers are very much loyal to the brand—no matter the cost. And to aid the expense sometimes, many people use their credit cards. Apple happens to have their own credit card offering, but is it really worth getting? We believe that it’s definitely not worth applying for. Here are a few reasons why you might have to look for a different way to fund your Apple obsession.
First off, you need excellent credit scores to get an Apple credit card. It makes sense in a way, since Apple products are so pricey. You need to show that you can handle your payments on time and have good credit history. If you want to buy in the big leagues, you need to show that you can deal with the responsibility.
Barclaycard, a third party financial institution, sponsors the Apple credit card. The card unfortunately didn’t inherit the ingenious ways of the company. When it comes to rewards, it doesn’t offer anything spectacular—just $25 every 2,500 points. That means you’d have to spend about $834 at the Apple store before you can get $25 back. That amount is even more if you’re swiping your card at other stores.
Depending on your credit score and history, you might be slapped with an incredible 28.74% APR. That’s ridiculously high even when compared with the worst credit cards out there. Having the APR as high as it is will be terrible for you when you start trying to repay your card. You’ll be paying a lot more extra than what you originally paid for whatever Apple product you bought.
It’s good that you can get cash in advance with the Apple credit card. However, you should know that if you do, you’d get a hefty 5% fee along with it. While that may not sound like much, it adds up, especially when you also consider the 28.99% cash advance APR that you’ll have to deal with. It’s not a hidden fee; but if you don’t read about it, you wouldn’t know.
You can also use the Apple credit card to make purchases internationally. It can be extremely convenient to have a card like so. However, make sure that you account for the 3% fee that you’ll be incurring every time you swipe—that’s every swipe. If you don’t keep track of your swipes, you might be shocked at how much you’ve gone overboard when it comes to the fees.
Missing a payment can happen to anyone. However, if you don’t want to incur a late fee, you should make sure that you pay your credit card bill on time. The Apple credit card has a pretty high late fee of $37. You’ll have to pay this fee along with your next credit card bill in order to get your card up to date.
The Apple credit card offers a special financing program, which defers interest for 6, 8, or 12 months depending on terms. What this means for you is that you won’t have to pay for interest during that period of deferment. However, you should know that you’d need to pay for the entire purchase before the time of deferment ends. If you don’t, you will incur all of the interest fees in one time—as if your interest payments weren’t deferred at all.
Barclaycard happens to have one of the worst reputations when it comes to customer service. Many cardholders have reported that dealing with the company is an ordeal especially when it comes to issues. You’ll likely end up having to deal with some kind of frustration if you ever have to solve a dispute with any of your charges. Even with an excellent credit score, you might be required to present other financial information just to get approved. These are just some of the complaints of cardholders. While it may not reflect what your experience could be with the credit card, it’s not a risk worth taking when your credit score could be impacted somehow.