The new Apple card promises lenient payment terms, low interest rates and no fees. She wants to be a revolutionary credit card for the rest of us. But many of its features are not really new, but a development of reward and fee structures that other cards already offer.
One of the most compelling cash-back cards available without a renewal fee is the Citi Double Cash, which earns 1 percent cash on every purchase and then 1 percent off when you pay your bill. This is essentially a 2 percent bonus for every dollar you spend, provided you pay your bill in full and on time each month.
] The Citi Double Cash Archive is the Fidelity Rewards Card, another annual fee card that offers a 2% refund for everything. You do not have to pay your balance in full to get the 2%, but you have to deposit or deposit your rewards in a Fidelity brokerage or cash management account.
The Apple Card gives you 2% cash back, but only on transactions you make through Apple Pay, but their acceptance is widespread but not ubiquitous. How much cash back you earn depends largely on how fast Apple is conquering the mobile payment market and how often you think about tearing out your phone at the cashier instead of your credit card.
But many Americans do not pay Their credit card bills are fully and punctually settled, as evidenced by the billions of dollars that banks charge on fees and interest. This means that many people, at least in the short term, can not use the full 2% cashback on Citi Double Cash. On the other hand, since all the money earned on your Apple Card will be repaid, no matter when your last payment was made, many people might come out with a change.
And there are almost certainly more Americans who own or dream of it If you have an Apple iPhone as a Fidelity brokerage account, the Apple card could also be more compelling than the Fidelity card. Do not add any late payment fees charged by Fidelity and Citi, and the Apple Card will indeed become a credit card that Americans never knew was needed.
But the giant catch on the Apple Card is that it is still being issued by a bank – Goldman Sachs in this case. Banks need to make money, which means that the Apple Card, like any other credit card, charges up to 24 percent interest, depending on your credit. Interest rates are as punishable here as any other credit card, but you are even more likely to pay them as there are no late fees that are punctual. A tracker shows how much interest you will pay depending on how much you have paid off your balance. However, this is more boring than Citi's approach of paying an additional 1% premium on every dollar you pay.
That's clear The Apple Card is really a card for the rest of us. Those who do not always handle credit responsibly still want rewards. In this respect, it is worse than Citi's Double Cash and Fidelity Rewards, which still generate huge profits from consumer irresponsibility, but at least provide incentives to pay bills on time.