The Pros and Cons of the New Apple Card: A Comprehensive Guide

Apple Card has earned a reputation as a top-tier credit card, with a range of benefits that distinguish it from other cards. However, there are also drawbacks to consider. This guide aims to provide a balanced view of the advantages and disadvantages of the Apple Card, helping potential users make an informed decision.

Pros of the Apple Card

Daily Cash Back

The Apple Card offers 2% cash back when used with Apple Pay, and 1% for other transactions. This is a highly attractive cash back rate, especially for frequent Apple Pay users. While other cards like the Fidelity Visa Card and Citi Double Cash Card also offer 2% cash back, the Apple Card can still be a compelling choice if you primarily use Apple Pay.

No Annual Fee

One of the most significant advantages of the Apple Card is the absence of an annual fee. Unlike some premium cards, the Apple Card is completely free, allowing users to carry it without the burden of yearly costs.

Strong Security

The Apple Card's advanced security features make it an excellent choice for those who prioritize their financial security. Transactions are highly secure, and there is no need to worry about identity theft or other security issues.

Built-In Financial Health Features

Users of the Apple Card can take advantage of built-in features that help track spending, payments, and finance charges. This makes it easier to manage finances and stay on top of budgeting.

Integration with Apple Ecosystem

The Apple Card is seamlessly integrated with the Apple ecosystem, making it a natural choice for Apple users. It offers a convenient and seamless transaction experience, especially for those who already use Apple Pay.

Cons of the Apple Card

Varying Interest Rates

The APR on Apple Card can vary from 13.24% to 24.24%, which is higher than the typical range for most credit cards. This is a significant drawback, especially for users who want to avoid high-interest debt.

Limited Acceptance

One of the biggest cons of the Apple Card is its limited acceptance. It does not work in some places, including Costco, and is not accepted at vendors who only accept Magstripe cards. This can be a limitation for users who frequently shop at specific retailers or regions.

No Additional Users

The Apple Card does not allow for additional users to be added to the account, which means it is not a good choice for families or those who want to share the account.

Unsuitable for Certain Vendors

The Apple Card cannot be used in some instances, such as at Costco, due to its status as a Mastercard. It also does not have a place for a signature, which can be an issue for vendors who only accept Magstripe cards. Additionally, the card does not display any visible numbers, making it problematic for vendors who still rely on primitive methods of card acceptance.

Backed by Goldman Sachs

The Apple Card is backed by Goldman Sachs, a highly reputable but also less flexible bank. While this adds to the card's security and stability, it also means that users may not be able to enjoy the same level of perks and features that are available with other credit cards.

Conclusion

In summary, the Apple Card offers a host of benefits, including daily cash back, no annual fees, strong security, and seamless integration with the Apple ecosystem. However, it also has drawbacks, such as varying interest rates, limited acceptance, and the inability to add additional users. Whether the Apple Card is right for you depends on your spending habits, financial needs, and the Apple ecosystem you are a part of.

To make a more informed decision, thoroughly review the details of both the pros and cons of the Apple Card. The right credit card for you is one that aligns with your spending habits and financial goals. Consider your options carefully and choose wisely.