Apple Card

Apple’s newest toy, the Apple Card, is due this summer. Not quite as revolutionary in terms of purpose as its past inventions, but it will nonetheless attract a great number of people. It does have some unique differentiators that may make it more secure and private, but there are also a few things to watch out for if you’ve read their fine print. Let’s dive into the pros and cons.

Pros

Simplicity is in Apple’s DNA, and they seem to have implemented it into the Apple Card. For starters, you don’t even need a physical card to pay for anything – just use the Wallet app on your iPhone. For those who do want to use a physical card, no worries; Apple’s titanium card can still do the trick. Even the card is simple; there are no numbers, no cvv code, no signature required. It simply has your name, the EMV chip, and a few logos , all engraved into the card by a laser. To pay with a physical card, you will need access to your phone anyway. Each transaction generates a one-time security code that will need to be approved through either FaceID or TouchID. For those still worried about privacy of information, Apple partnered with Goldman Sachs, which agreed not to sell your data to or share with third-parties for marketing or advertising purposes.

There is also the fact that there are no fees at all – late payments will still be charged normal interest rates. Speaking of which, their interest rates are about on par with other credit cards (depending on your credit score), so nothing out of the ordinary there. You can even see what interest you’ll be paying as you decide how much to pay.

Although they don’t have a sign-up bonus, Apple does give cash back and offers rewards. The major differentiator here is that the cash you get back will be given to you on a daily basis, which is huge compared to other credit cards. In terms of the rewards, it’s broken down by the following:

• 1% – all purchases made with the titanium card
• 2% – all purchases when you use Apple Pay
• 3% – all purchases from Apple

Cons

This isn’t a one size fits all solution. No credit card really is. First off, it’s great that there aren’t any fees tied to Apple Card, not even late fees. However, looking at the fine print, Apple will still report late payments to the crediting bureaus. So if you think you can just let payments slide and still be okay, your credit score will tell you otherwise.

The one thing lacking with the Apple Card that almost every other credit card has is a sign-up bonus. However, this is something that doesn’t concern me. These bonuses are used by credit card companies to entice customers to sign up and use their card, and with Apple having a cult following, they really don’t need to implement this gimmick.

The last concern I have is regarding the extent of integration between the Card and the iPhone. It’s not surprising that they have integrated yet another product into their ecosystem, but this makes it a little different considering that your finances are tied to it. Since you also need your phone to create a transaction, that gives it a little too much responsibility for one device. If you were to lose it or forget it somewhere, it would be a pain to have to go through the process of getting a new phone and a new card. Plus, there’s the fact that your fingerprints and face are held by Apple.

So in the end, like many of their products, the Apple Card is really designed for those using other Apple products. It’s not a revolutionary product by any means, but the way it is designed certainly makes it different from the rest of the credit cards out there. There are still some concerns that need to be addressed, but in the end, it doesn’t really matter. People are going to sign up in droves…because it’s Apple.