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Apple Card review

 /  8 min
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Snapshot

3.5

Bankrate rating
Info
Rating: 3.5 stars out of 5
Image of Apple Card

Apple Card

*
3.5
Rating: 3.5 stars out of 5
Bankrate score
Info
N/A

N/A

Intro offer

Info

2% - 3%

Rewards rate

Info

Annual fee

Regular APR

The Apple Card is one of the most unique cash back credit cards on the market today, but it’s also geared specifically toward consumers who already own Apple devices. This rewards card works in conjunction with the Wallet app on your iPhone or Apple Watch, as well as with Apple Pay, to streamline purchases and help users earn up to 3 percent cash back on everything they buy.

What are the advantages and disadvantages?

Apple Card comes with an array of unique features geared to Apple users, and consumers get to earn tiered rewards on everything they buy — including 3 percent back on Apple products like phones, computers and accessories. However, this card isn’t for everyone, and it has several limitations you won’t find with other rewards cards.

Pros

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    Generous cash back rate on all purchases: The Apple Card lets users rack up 3 percent back on Apple purchases as well as with select retailers, 2 percent back on other spending when paying with Apple Pay and 1 percent back on all other purchases.

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    Earn rewards daily: Unlike other rewards credit cards that award points at the end of each billing cycle, the Apple Card accrues cash back as you make purchases every day.

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    No hidden fees: This card is free of annual fees, foreign transaction fees and late fees.

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    Earn interest on your rewards: You can automatically deposit your Daily Cash rewards into a high-yield savings account with Goldman Sachs and earn a 4.15 percent APY

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    Apple Card Family feature: You can add other family members as authorized users to your Apple Card to create an Apple Card Family. This feature makes it easier to monitor all family spending and rewards in one place.

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    Introductory rates for eligible Apple purchases: Cardholders can qualify for introductory APR offers for select Apple purchases. The length of your introductory 0 percent APR offer will vary.

Cons

  • Top rewards rates have stipulations: You’ll only earn the top 3 percent back rate when you shop with Apple and use Apple Pay at select merchants, and earning 2 percent back hinges on paying with Apple Pay.

  • Must own Apple products: This card is designed for Apple users and not really useful for people who own other types of devices.

  • Doesn’t allow balance transfers: Goldman Sachs, the issuer of this card, has reportedly made it difficult to transfer balances from this card to another. The Apple Card does not allow transferred balances from other cards, either.

  • You have to request a physical card: The Apple Card is meant to work within Apple Pay, so it doesn’t automatically come with a titanium card unless you request one.

A deeper look into the current card offer

Quick highlights

  • Rewards rate: Earn 3 percent back when you shop with Apple and select retailers, 2 percent back on other spending when paying with Apple Pay and 1 percent back on all other purchases
  • Welcome offer: None
  • Annual fee: $0
  • Purchase intro APR: N/A
  • Balance transfer intro APR: N/A
  • Regular APR: 19.24% to 29.49% Variable

Rewards rate

While the Apple Card doesn’t always offer a traditional sign-up bonus (it does occasionally offer limited-time bonuses), cardholders can earn some pretty generous rewards on their spending from day one. This is because the card offers high cash back rewards rates that accrue daily as purchases are made.

How you earn

You’ll earn 3 percent back when you shop with Apple, 2 percent back on other spending when paying with an Apple Pay and 1 percent back on all other purchases. While the 3 percent cash back rate is very generous, you have to ask yourself how much you spend with Apple within a year. Maybe you frequently upgrade your phone or invest in a new Macbook every few years, but unless you’re a heavy Apple shopper this bonus category may not lead to a ton in rewards.

Also note that this card offers 3 percent back with specific merchants that can change over time. Current retailers that earn 3 percent back include Duane Reed, Mobil, Panera Bread, Uber, Walgreens, Exxon, Nike, T-Mobile and Uber Eats. However, you must pay with Apple Pay at these retailers to earn the bonus rate.

The 2 percent cash back rate is also generous, but keep in mind that, you’ll need to pay with your Apple Card and use Apple Pay on a device like your iPhone or Apple Watch. Though support for the mobile wallet has grown considerably in recent years, not all merchants accept Apple Pay. If Apple Pay isn’t an option, you’ll only earn 1 percent back on non-Apple purchases made with your physical card.

Meanwhile, earning 1 percent back on general purchases is pretty standard among cash back credit cards.

How to redeem

The Apple Card lets you add to your cash back rewards balance daily, which is a major plus. However, the ways you can use your Apple Card cash back is rather limited.

You can turn your rewards into Apple Cash — a prepaid card in Apple Wallet — and send money to friends or make purchases via Apple Pay using those funds. If you don’t have an Apple Cash account, you can redeem your rewards as a statement credit to your account. You can also automatically deposit Daily Cash into a Goldman Sachs high-yield savings account and earn interest on your rewards — a nice alternative to typical cash back card redemption options.

How much are the rewards worth?

Since the Apple Card offers cash back instead of rewards points, the cash back you earn is worth the exact dollar value you would expect. For example, earning 3 percent back on a $100 purchase would leave you with $3 in rewards, and the same purchase at the 1 percent back rate would leave you with $1 in rewards.

Other cardholder perks

The Apple Card has unique benefits that users might grow to love, but its perks aren’t the same ones you will find with other cash back credit cards. For example, the Apple Card doesn’t come with any travel insurance protections, nor does it come with purchase protections like purchase security or extended warranties. Instead, you’ll enjoy a unique and useful mobile experience, consumer-friendly payment and expense tracking features and more, including:

Grow Daily Cash with a high-yield savings account

Along with earning ongoing Daily Cash, the Apple Card gives you a chance to grow your rewards via a high-yield savings account with the card’s issuer, Goldman Sachs.
 
Once you’ve set up an account with Goldman Sachs, you can automatically deposit your Daily Cash rewards into high-yield savings and earn a 4.15 percent APY. This redemption option also comes with no minimum deposit or minimum balance requirements, and you can easily withdraw funds at any time via the Wallet app with no fees. This flexibility is refreshing considering some high-yield accounts require you to have hundreds or even thousands of dollars deposited to earn a top interest rate.
 
You can find savings accounts that offer rates closer to 5.00 percent APY, but a 4.15 percent APY is still very competitive. Indeed, this rate is more than ten times the national average deposit rate and even beats out the rates you’ll find with some of Bankrate’s best savings accounts.
 
And though 4.15 percent APY on just your Daily Cash earnings may not add up to a ton of savings in the short term, it’s nice to have the option to save and earn interest on your rewards instead of being forced to redeem them for travel, gift cards or a statement credit.
 
To get a sense of how much you could save using this feature, estimate your monthly spending in the Apple Card’s bonus categories, then calculate your cash back earnings in each category based on the card’s respective rewards rates. Then you can add these earnings as a monthly contribution in Bankrate’s savings calculator, along with a 4.15 percent APY.
 

Mobile expense tracking

Since your Apple card is meant to work alongside Apple Pay and your iPhone, this card makes it easy to monitor your spending on a daily basis or over the course of many months. You can use the app to view receipts for all your purchases, or to get a visual of your spending by color and by category. You can even look at a spending summary by the week, the month or the year.

Smart payment suggestions

Apple not only lets you set up payment alerts on your phone, but also makes smart payment suggestions that can help you pay less in interest over time.

Features for families

Apple Card lets you co-own an account with another person. You can also set up an Apple Card Family account that lets you keep track of spending and rewards of all cardholders and authorized users to your Apple Card in one place. Apple Card Family users who are ages 18 and older can even begin building credit through their participation.

End-of-month due dates

Finally, this card keeps things simple by setting end-of-month payment due dates. You’ll never have to wonder when your payment is due as a result.

Rates and Fees

The Apple Card doesn’t charge an annual fee, nor does it charge foreign transaction fees. Cardholders won’t even pay late fees on their card, which is really a stand-out feature.

If you carry a balance, you’ll pay an APR of 19.24% to 29.49% Variable

We tried it: Here’s what our experts say

While the hyped Apple Card offers minimal perks and lacks a sign-up bonus, The Points Guy writer Ryan Wilcox found a spot for it in his wallet:

While the Apple Card falls short of general public expectations, it can make sense for Apple loyalists or those who frequently use Apple Pay, as well as people who want a simple, no-frills credit card experience.

— Ryan Wilcox, Writer, The Points Guy

How the Apple Card compares to other cash back cards

Before you sign up for the Apple Card, you should compare it to a few other cash back credit cards with different features and rewards. The chart below compares the Apple Card to the Wells Fargo Active Cash® Card (earns cash rewards) and the Chase Freedom Flex℠, two other no annual fee cash back cards worth considering.

Image of Apple Card

Apple Card

Annual fee

$0

Intro offer

N/A

Rewards rate

2% - 3%
Info

Recommended Credit Score

N/A
Info
Image of Chase Freedom Flex℠

Chase Freedom Flex℠

Annual fee

$0

Intro offer

$200
Info

Rewards rate

1% - 5%
Info

Recommended Credit Score

Good to Excellent (670 – 850)
Info
Image of Wells Fargo Active Cash® Card
Bankrate Score
See Rates & Fees , Terms Apply
Apply now Lock
on Wells Fargo's secure site

Annual fee

$0

Intro offer

$200 cash rewards
Info

Rewards rate

2%
Info

Recommended Credit Score

Good to Excellent (670 – 850)
Info

Best cards to pair with this card

Since the Apple Card only gives the 2 percent back rate on everyday purchases made with the card through Apple Pay and your Apple device, you may want to pick up another rewards card to use for in-person spending where Apple Pay isn’t available. That way, you can earn more than 1 percent back in these circumstances, which is what the Apple Card offers for purchases made with the physical card.

The Wells Fargo Active Cash Card could be a good choice, since it offers a flat 2 percent cash rewards back on purchases with no annual fee.

Bankrate’s Take: Is the Apple Card worth it?

If you use Apple devices and spend a lot on Apple products already, the Apple Card may be well worth signing up for. This is especially true if you spend a lot in other categories the Apple Card offers 3 percent back in, such as T-Mobile for your phone bill each month or Uber Eats. If you make most of your purchases with Apple Pay and your phone already, then you’re already primed to earn 2 percent back on most of your non-Apple spending as well.

Still, there are plenty of other rewards cards that offer a lot more flexibility, meaning you’ll earn the promised rewards rate no matter whether you pay with a physical card or through an app. With that in mind, you should compare the top card options before you decide.

The information about the Chase Freedom Flex℠ has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
 
Written by
Holly D. Johnson
Author, Award-Winning Writer

Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more.

Edited by Managing Editor, Credit Cards
Reviewed by Senior Editor, Credit Cards

* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.

Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.