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Apple Card- How it Works and Worth It?

Apple Card- How it Works and Worth It?

Apple Card has launched for all iPhone users. Should you get this card? What are the benefits and concerns? Is this just another way to trap you in the Apple ecosystem or is this one of the best new cards to get?


What is the Apple card?

Apple Card is a partnership with Goldman Sachs to create digital and physical credit cards. The credit card itself is a Mastercard that can be used anywhere. That Mastercard is accepted.

Let's take a look at the card itself the features and the benefits. In the end, I'll tell you possible concerns with the Apple card. When you get your Apple card it comes in a Brown box-like. Inside you have the cardholder and there is the Apple card.


To activate your card.

Open the Wallet app and follow the instructions. Titanium card. Laser edge. It is a good-looking card. It is going to probably look horrible after setting it in the wallet. Since they did opt for a white card. I think a black might have been a better option or dark Gray but laser-edged. Cool stuff.

  1. Now Let's open Apple Wallet. Activate my card. The card has been delivered.
  2. Let's activate the card and next hold the phone near the packaging and activate the card. Your card is ready to use everywhere and hit done. So that is it. Inactivating the card. There's your magnetic stripe down there. It's a Mastercard. Goldman Sachs. No numbers on the back at all. Name chip and the Apple logo. Very cool-looking card. Of course, it's got the Apple chamfered edges on it. A lot of hype on this card. Don't know if it's necessarily worth all of that hype.


Features

Apple's calling this a new kind of credit card because it's created by Apple and not a Bank. But they did need to partner with a Bank and that Bank is Those familiar with Goldman Sachs may have some concerns. We'll talk about that at the end. The Apple Card is only available to Apple users. No cards for you Android users as Apple describes it. This is the first card that lives on your phone meaning lives on your iPhone. The idea is that this is more of a digital credit card. You do get a physical card to use in places where you can't make digital payments. The strength of this card is that it really does live in the digital wallet.

With the Apple card, you could see all of your transactions right in the app. All transactions are put into categories that are color-coded. When you first get your card in the app the card is white. As you use it more the card turns to the color of the categories.

Apple Card- How it Works and Worth It?

I only used mine at places that sell food and that category is Orange. The app does give you a weekly and monthly graft of your spending. Below that, you can see the latest transactions by business name and the amount of cashback you're going to get.

Another big feature is that it will show you where the transaction took place on a map. This is great if you're not sure about a charge with this card. Apple's trying to offer a secure card and protect Privacy according to Apple does not even know where you spend your money to make the card secure. When you activate the card the information is stored on your phone.

There are no numbers on the physical card. If you have to enter the card number on a website you can open the app and see the card number expiration date and security code. I do think this is a pretty cool feature. Apple's also trying to disrupt the credit card game by encouraging people to pay less interest by using the tools in the app to show how payments affect how much interest you will pay. Apple is also not charging any fees for the card.

They're trying to offer lower interest rates and trying to provide a card that almost anyone can get. I don't know if that last one is necessarily a good thing. To get an Apple card, you can apply right through the Wallet app and you'll know within a couple of minutes you will get approval or rejected right then if approved you could start using the card immediately and your physical card will be mailed out.

Other than looking cool with your no-number, titanium white card that will look like hell after being in your wallet for a week. 


What other benefits to having the Apple card?

Apple is offering daily cashback within 25 hours of purchase. This means you can use your cashback the next day to pay for some air pods. After you spent 3000 dollars on a computer. Cashback can be used as Apple cash towards purchases towards your card balance or sent to your Bank account. The cashback amounts are 3% for anything you could buy from Apple 2% for using Apple Pay and 1% when you use the physical card.

To me, the real value of cashback is with those Apple purchases. Next time I'm going to buy an Apple product from the Apple Store I'll be using this card for the cashback. It also makes sense to set this up as your payment method for any Apple subscriptions App Store purchases, games in-app purchases, or iTunes purchases. That 3% cashback on those kinds of purchases is probably going to be better than most credit cards.


The next big benefit of the card lies in the app itself.

The app makes it very easy to see where your money is going. You can tell how much you're spending on food and entertainment. This can help you be more conscious about your spending and possibly help with budgeting better. The app also lets you know instantly when a transaction happens. This should help with any possible fraud. Getting real-time cashback that can be applied in all the different ways is nice.

The Privacy and security features are great too but they are not foolproof. There have been Apple cards that have already had fraudulent charges. These occurred before Apple released the card to the public during their employee beta testing.


Concerns and possible reasons not to get the Apple card

One of the first reasons may be that this will take you even deeper into the Apple ecosystem and make it harder to leave. Other than making money and transactions Apple wants you to use as many of their products and services as possible. The more their services and devices you buy the less chance you'll leave Apple. They're trying to make it more convenient. So the walls of the Apple wall garden get taller and taller. That way you never look over them to see if there might be something better on the other side.


The next thing to consider is the card rewards itself.

If you like to carry a balance and you get a good interest rate on the card this may be a good card for you. If you use a lot of Apple services and buy a lot from Apple it might be a good choice. But you can do better with other cards when it comes to rewards. Personally, I find myself buying more to Amazon than at Apple. So my Amazon Prime Visa offers me 5% on Amazon purchases and at Whole Foods. The Amazon Prime Visa will do 2% at restaurants, gas stations, and drug stores.

So if those places don't take Apple pay from my phone I'm getting more for my money from my current card but my Visa only does 1% everywhere else. So if a business does take Apple pay then the Apple card would offer more in cashback. My American Express offers other rewards and different layers of protection that I'm not gonna get on my Apple card. These include protection from theft additional warranties car rental protection and more.


The next concern of the Apple card might be more of a moral concern.

Apple has partnered with Goldman Sachs. Goldman Sachs played a large part in the subprime lending mortgages that eventually led to the housing crash of 2008. According to Wikipedia, it's alleged that Goldman Sachs misled investors and profited from the collapse of the mortgage market. Goldman Sachs was investigated by the government and had to pay a 550M dollar fine. Goldman Sachs also received 10B in bailout money from the government that they did eventually payback.

But during that bailout time, Goldman Sachs was questioned by the New York Attorney General for paying 953 employees over a million dollars each in bonuses. This is something to consider about Apple partnering with them.

And if you want to support Goldman Sachs the Apple card does have some great features that I think other credit card companies should push hard to implement. The app function personality is top-notch. With digital payments becoming more the norm. This card does offer tools we can all use. As for the cashback rewards if you're not buying Apple products they're okay. You can do better with other cards beyond rewards and features. I think there are two real things to consider.


Do you want to go deeper into the Apple ecosystem and do you want to support Goldman Sachs by getting this card?

It may be one of the coolest looking cards and titanium and no numbers and later last names but at the end of the day it is just a credit card something I think we need to be responsible with. Hopefully, the tools Apple is offering will help those that decide to go for the Apple card. What are your thoughts about the Apple card? Would you get one? Let me know in the comments section.

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