Apple has long been a leader in the computer and mobile devices industries. They have posted consistent gains in both areas, and regularly unveil new models of their products to appeal to a global fan base. On the heels of their largely successful introduction of Apple Pay, they have also opted to now get into the financial services business. They are doing this by offering a credit card that offers a variety of perks. Among these will be the potential to earn 2 percent cash back on purchases. Continue reading to learn more of the details of this soon to be released Apple Credit Card.
The Main Details
This is going to be a card backed by Goldman Sachs. That is a pretty big name to put its weight behind such a new entry into the financial services industry. To be honest, the details of the card are slow in coming as it appears that the two sides are still ironing out the fine details. That being said, there are a few things that we do know already. If you get this new Apple credit card, you will be able to earn roughly two percent of your purchases back via a cash rebate. The rumor is that this rate will be even higher when you use the credit card to make purchases on any Apple branded gadget or service. This is a pretty good rate and is line with many of the top rate credit cards being offered on the market today.
What It Won’t Have
Credit cards can’t come with everything under the sun, and this one appears to be no exception. The Apple credit card does not appear to offer any rewards related to travel. With reports indicating that this is the number one feature that consumers look for in credit cards today, that could be a drawback. If you examine them dollar for dollar, travel rewards cards do tend to offer some better returns. However, individuals looking for cash back and who spend heavily on Apple products will find this new card appealing on many levels.
There is no indication yet as to whether or not this card will have an annual fee. Apple does currently have a credit card co-branded and backed by Barclays Bank. That one does not come with an annual fee, so the hope is that this one will not as well. The current card gives consumers the opportunity to earn three points for every dollar spent on Apple branded products and services. Purchases made at a restaurant will earn two points for every dollar spent, while all other purchases will net one point for every dollar. Those points end up being valued at one cent for each one. Consumers with the card have been able to use those points to buy gift cards from either the Apple Store, iTunes, or the App Store. Those who have a Barclays card, however, will find that the new credit card will replace it. So, it will be no more at some point in the near future.
It is difficult to know just what Apple intends to accomplish with this new credit card, but it appears to be an effort to further integrate its other devices that support financial related services. Many longtime Apple users have grown to like the way the iPhone and the Apple Wallet app are integrated to make it easy to execute purchases in quite a few places. This new credit card will make it possible to get more detailed information about purchases in real time. Consumers will be able to better track their spending. The credit card will also make it possible to send instant notifications to any cardholder who appears to have made a purchase that shifts from their normal purchasing patterns. This will help eliminate fraud and make the card safer for all involved. It appears that many of the features included will be along a similar vein as that of Mint and other money management apps that have become popular in recent years.
In conclusion, this card is not going to compete with the other types of premium rewards programs that have long been marketed by industry giants such as American Express and Chase. This card, for its part, is going to appeal largely to Apple users. It will be yet another way to integrate everyday life into the mix with Apple products.
Written by Garrett Parker
Read more posts by Garrett Parker