Apple Card launched in limited numbers to select users on Tuesday, even though some details such as the credit score needed to qualify for it weren’t completely clear.
The card is issued by Goldman Sachs Bank, the first time Sachs has issued a consumer credit card. The annual percentage rate (APR) for purchases on the card was recently revealed, running from 12.99% to 23.99 when the account is first opened, which puts it in line with many other cards that are available. Also, after the account is opened the APR will vary based on the Prime Rate, now at 5.25. Of all new credit cards available, the average rate is now 16.91%
The APR a user gets depends on creditworthiness, which is usually determined with a credit score. The better a credit score, the lower the rate, but Apple and Sachs haven’t announced what a minimum eligible score is.
Apple has made a big deal that there are no fees that many other cards charge. That means no annual fee, transaction fee, penalty fee or “other fees.”
Apple Card is primarily a digital card kept on the Wallet app on an iPhone or iPad. A user needs an Apple ID and an iCloud account in good standing, as well as a valid email address. Two-factor authentication on the device such as Face ID or Touch ID has to be turned on. If the device or its software is jailbroken or otherwise disabled, it may no longer be used to manage the credit account.
Apple is also offering daily cash on purchases of up to 3% of the transaction amount for Apple goods, up to 2% for Apple Pay purchases and 1% for other purchases.
Even though the card is primarily digital, a physical card will be issued. It doesn’t include any numbers embossed on it, such as the card number, security code or expiration date. That is designed to enhance security if you use the card at a restaurant or other merchant for a purchase.
However, if the merchant needs to have the card number, it can be accessed through the Wallet app. The same applies to payments on apps and websites. That virtual card number will autofill during an order if a purchaser is using the Safari browser.
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