Apple Card

Apple announced Apple Card at its event on Monday. Details are incomplete, but its announcement excited me more than the media-related services Apple announced at the same event. Perhaps that is because I pay for things every day, but don’t watch much TV, and my wife and I are happy with our New Yorker subscription (she reads the physical magazine; I read it online) and our New York Times subscription (which we both read via its iOS app).

Apple Card interests me because I use Apple Pay all the time, and Apple Card’s Apple Pay-specific cash back rewards are a 33% better than what I get from either of my two current credit cards on the things I purchase most. From a pure spending and getting rewards perspective, Apple Card seems like a winner to me.

I am a somewhat baffled, however, at the Apple commentators’ many takes on how Apple Card’s rewards are mediocre. I suppose that may be the case for people who want travel rewards, but if you want cash back and can use Apple Pay at your local supermarkets and restaurants, Apple Card is a winner.

I base my opinion on lots of research into the best cash back cards. For the past twenty years, I have been a cash-back-rewards seeker who researches credit cards on NerdWallet and BankRate at least once a year, and occasionally jumps from one card to another. Based on my research, I already have the best credit cards for me, from a rewards perspective. Apple’s credit card’s cash back rewards system is better than all of them, again, for me. Two percent cash back on all Apple Pay purchases would increase the cash back I get from my largest non-mortgage monthly expense category, supermarket spending, from 1.5% to 2%.

I heard on TWIT this week that Apple Card does not have certain protections most credit cards come from, like purchase price protection and extended warranties. That doesn’t matter to me, though, as I have not used those benefits in the 20+ years I have had a credit card.

Apple Card’s announced interest rates fall within what I think is a normal range. Each customer’s interest rate will depend on their credit rating, so it is technically unknown until each person applies for it. Apple has not made it clear whether there is a monthly billing cycle with an interest-free grace period, which is common. This leads to more uncertainty about it, as better cash back rewards are not helpful if you have to pay interest on every purchase. I almost never carry a credit card balance, though, so whatever Apple’s interest rate is for me, and provided there is a normal grace period for purchases, it does not matter.

All in all, Apple Card sounds like a good deal for a lot of Apple’s customers.