The much-anticipated Apple Card has an application process that can be done on your iPhone in minutes. Not only is it fastâ€”itâ€™s open to a wide range of credit histories once it rolls out to the general public later this month.
That means that you can probably get approved for this card if you have a credit score above 600 or so. But if youâ€™re planning to apply for the card to get a discount on Apple productsâ€”thatâ€™s where the cardâ€™s best cash-back rewards can be found at 3%â€”you may come up short if your credit isnâ€™t great.
CNBC talked to one new Apple Card customer who said his FICO credit score is about 620. He was surprised he got approved, assuming that Goldman Sachs, Appleâ€™s partner for the card, would be more picky.
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There was a catch, it turned out. He got approved for Apple Card, but he only got a credit limit of $750. While he said the interest rate of about 24% was lower than the other card he carries, itâ€™s higher than the average for cash-back cards, which is around 20%. A low credit limit may protect you from getting into debt way over your head, but it will only go so far if youâ€™re hoping to use it to finance the latest Apple products. The iPhone X starts at $999, and the newest MacBook Air starts at $1,099.
Apple Card was created with customer experience in mind, according to CNBC. And creating a good experience for customers, according to Apple, apparently means allowing as many of them as possible to access this new payment option. That invitation to convenience and perks also enables spending.
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Beyond secured credit cards that require a deposit, there are options for people with poor credit to rebuild their history with an unsecured credit card. But they comes at a price: usually a 20-30% interest rate, and cash-back rates of around 1%. That makes the Apple Card with its variable interest cap of 23.99% interest and its rewards for Apple products and apps attractive. But donâ€™t expect it to be your ticket to a bunch of new electronic toys if your credit history doesnâ€™t sparkle.