The Apple Credit Card will be released this month. Here is what travelers should know before applying.
So first thing to note, that this card is backed by Apple, and not a bank. Although you will be issued a titanium card, the Apple card is on your iPhone in the wallet app. You will be able to make purchases quickly and you can see your balance and payment information right in your app.
No Fees
Interestingly enough, the card will have no late fees, no annual fee, no cash advance fee, and no over the limit fee. What’s the catch? If you are late on a payment, you are hit with added interest in lieu of the late fee. According to the website, “Our goal with Apple Card is to provide interest rates that are among the lowest in the industry.” Interest rates will vary from 13.24% to 24.24%.
The best way to save on interest is to pay your balance in full every month. When you can’t do that, Apple Card does the math for you. Choose any amount you wish to pay, and watch Apple Card estimate the interest cost for for you in real time. This way, you can make an informed decision.
Rewards Program
So don’t expect to earn points, miles, sign up bonuses, free hotel stays or anything free for using your card. The rewards program is straight forward in that it offers what is called “daily cash,” which is a bit misleading because you don’t receive actual cash. A percentage of each purchase will be loaded onto your Apple Cash card to be used like a debit card. Cashback ranges expected from 1 to 3%. If you make a purchase from a place that does not offer Apple Pay, then you earn 1% daily cash. If you are able to use Apple Pay (which includes businesses such as Walgreens, Target and Lyft,) then you earn 2% daily cash. When you use the card for any purchase from Apple, including iTunes, the App Store or an Apple store, you earn 3% daily cash.
Again you can use it to make purchases, transfer money to friends via messages, send the money to your checking account or make a payment on your Apple Card.
Budgeting & Tracking
Everything you purchase gets color coded, so food vs. entertainment vs. shopping are all added up for you, making budgeting easier. Each transaction is also mapped out so you can always go back and see the name of the business where the purchase was made along with the location on the map. Apple also send you payment reminders to make sure you don’t miss an upcoming due date.
Fraud Protection
Because you need Face ID or Touch ID for your phones, Apple does not include the credit card numbers that are usually on the found on the front of a credit card. There is also no CVV, expiration date or signature area. So, people can no longer get your credit card number. Lost your wallet? That’s ok. Again the credit card information is not accessible.
Apple will also send you a message if they detect any suspicious activity. If you don’t recognize a charge, just tap on it and Apple will take care of the rest.
Need assistance? Just text customer service from your phone for assistance, avoiding the need to wait on hold for a representative.
If you want to be one of the first to apply for the Apple credit card, just click on the link and add your email address.
So is it the best card for travel rewards? In the sense of the security features yes, but considering the signing bonuses, bonus rewards and upgrades, miles, etc. that you can earn with other cards, it may not be your best bet. You also have to consider that if you don’t live in a large city, many retailers are not set up with Apple Pay, which means you would only earn 1% on the majority of your purchases. Of course, Androids users, this card is not for you, as it is only compatible with iPhones.
You may be interested in reading our blog Best Travel Rewards Credit cards for cruises.
