Apple Card: What Apple isn’t telling You!!!


– [Announcer] This is Apple Card, a credit card created
by Apple, not a bank, so it’s simple, transparent, and private, and it’s the only credit card designed to take advantage of the power of iPhone, – Whack. Yes, you just heard me
call the Apple Credit Card, in my opinion, it’s whack, and especially if you know about credit cards within the game. You’ll realize this is a very
mid-range, mediocre card, and Apple, once again, is using
the Apple distortion field to make something look way better than it actually really is, which is a mediocre, middle of the range sort of starter card, and you
could be doing a lot better with other cards out there, but Apple has sort of taken
advantage of what I feel a lot of people out there has, lack of credit card knowledge, to be able to promote this to being, once again, better than what it really is. Let’s start off by talking
about the card itself. So, the card itself is
made of titanium and metal, which is pretty cool, but
to be honest with you, the novelty of that wears off really fast. I have two metal cards that are like that, and it was pretty cool for
the first couple of times I played around with
it, but after a while, the novelty, like I said, wears off, and you end up either paying
online a majority of the time or you end up using tap to pay, and that’s what I particularly
do with Samsung Pay. It’s a clean design, just a magnetic strip and your name on it, and the
built-in chip in there with it, and that’s all you get. There is no credit card
number or anything on it. You have to actually get that
information from your iPhone, which it’s directly connected to, and use the security built into the iPhone and your face ID to be
able to get the numbers and the CVV PIN and things like that when you wanna make
purchases with the card. Nice that they have the security
built in there with that, nice that they kind of protect that. A lot of digital wallets
use virtual numbers anyway, so even if you have your card in there, it usually gives another card out when you use it for tap to
purchase with it anyways, and you have another number
and CCV code that you give them to protect it, so the store
doesn’t directly have your card. They have another card with it. It’s cool that they’ve done that feature, but it’s not something
that’s, I would say, totally revolutionary with that. Now, that’s pretty much the card itself. It’s issued by Goldman Sachs. That’s the bank that’s back behind it. Apple is really taking more
of a front face to this, so it’s not just a branded card. It’s really kind of Apple saying, “Hey, “this is our credit card
that we’re offering to you.” But since they’re not an official bank, they have enough money to be one, but since they’re not
an official bank itself, they have to use an issuer, and Goldman Sachs is
essentially the issuer for it. It is also a MasterCard, which is okay. MasterCard cards tend
to be in the mid-range, starter-type cards, versus
Visa, which tend to have the more higher-tier,
premium credit cards. MasterCard does have World Elite, so they have a few of them out there that are called MasterCard
World Elite cards. You see that on there, you do get some premium
features with that, but they tend to be in
the middle of the road, and that’s actually important when we’re talking
about credit cards here, because the Visa and Visa
Signature and Visa Infinity actually do give you some
pretty cool benefits, which we’ll talk about a little bit later. The Apple Card is tightly integrated in with the Wallet app,
and it gives you sort of this nice tracking feature. You can see all your
history and your payments. You get some graphs and things like that about how you’re spending
and what you’re spending on your card, payment reminders, and interest rate estimates
and things like that, which are pretty cool to
have built into an app, but there are so many other apps out there that sort of do this a lot better and give you a total financial picture, not just about one card. You wanna know about
your checking account, banking account, your 401Ks, your loans, you know, the wholistic credit card view. You be really looking for trackers that sort of give you that
information out there. If you’re really tight on privacy, yes, they have some tight privacy controls over your data purchases
within the Apple Card, so that might be
something important to you and you might want to go
with that in particular, but I will be honest with you, really want something
like Personal Capital, which I use myself, and
a lot of people use Mint, and there’s some other ones out there to get more of a wholistic picture over your financial situation, which is gonna help you make better purchasing decisions
overall when you have that. Apple also boasts about
having no fees on this card, no late fees, no foreign transaction fees, and things like that. Pretty cool for a card at this tier to not have any foreign transaction fees. It’s pretty good to
have, ’cause you usually have to get that with
higher-tier travel cards, so you don’t have to pay that percentage. No late fees, which are nice to have, but you also should have your card set, any credit card that you have, you should have it set to at least paying the base minimum payment automatically, and then going in an paying it off in full to avoid interest, or pay
it as close as you can to pay as little interest as possible, because life changes and
things can change like that. But you wanna make sure at
least the minimum payment is guaranteed to be paid
off to avoid any late fees, because if you do get a late, even if Apple isn’t charging you, they might report that
to your credit bureau, and having a late fee
on your credit report or a late payment on
your credit report marked is pretty significant, and will pull your
credit down dramatically, and those stay on there for seven years. The impact weakens over time, but within the first two years, it could really affect any other cards or any other types of credit
that you might want to get, so make sure you have auto-pay turned on for at least the minimum payment to avoid any sort of missed payment. Now, let’s talk about the rewards system that you have here with the Apple Card. It’s a 3-2-1 cash back card, basically, so it’s 3% back on all
purchases from Apple, Apple.com, I’m assuming iTunes as well, too. That’s nice if you have
a lot of spend at Apple, within the Apple Store,
within the iTunes store. You get 3% back on that. That’s the highest percentage cash back you could earn within the card. Eh, not the best, but it’s
there for that reason, obviously, ’cause it’s Apple. Now, it has 2% back here on
any time you use Apple Pay, so you need to make sure that the website that you’re going supports
Apple Pay to get the 2% back, the in-app purchase also
has Apple Pay option on to support that, or if
the store you go into has the ability to use NFC
payments with Apple as well. This is where things can
get a little bit tricky, because Apple uses NFC,
while Samsung uses NFC plus MST payments to be
able to sort of imitate that magnetic tap there with it, so that gives it a much greater
advantage over Apple Pay, so there could be a lot of cases where you can’t tap to pay, and you end up only earning
1%, which is what you earn on everything else in the 1% category, just sort of that fill-all. The rewards system is very meh compared to the other ones out there, and yes, they do give you
cash back within 24 hours. Nice that it has that. It’s kind of them rebranding
sort of the purchase eraser sort of thing that happened
with a lot of other cards. Capital One has that,
so does Bank of America, and a few other cards as well, too. You can use your cash back instead of taking it back as cash, which you can do with the Apple Card here and deposit it into your bank account. They say, “Well, you
can use it right away.” That’s nice, but truthfully speaking, with rewards, you really
wanna build those rewards up to get something later down the line. You don’t wanna be instantly
using it right away. That’s, again, another sort of, they’re trying say something is a benefit, but it really isn’t how you should be really using your rewards. That’s what I really wanna talk a little bit more about here, is how, when you’re dealing with
credit card rewards, you really wanna get
the best reward system for the type of spending
and the type of rewards that you really wanna have with it. Two biggest ones out there are really Chase Ultimate Rewards and
Amex Membership Rewards. Those are sort of the two
big ones everybody uses. Everybody has a system, but those two tend to have
the best bang for your buck and the best value possible, and I’m gonna explain to you here how you can get better
value through another card if you’re gonna make an Apple purchase than you would just going
with the Apple card. So, the card I’m gonna
talk about right now is the Chase Freedom Unlimited card. I typically stay in the Chase
Ultimate Rewards program. It has some really nice
benefits and features and it’s really easy to
get everything together and get the best bang for your buck when it comes to the point. So, the Freedom Unlimited
is the card I’m going to use in comparison to the Apple Card here, and they’re kind of in the same tier. Right now, Chase Freedom has a deal. For the first year, you
earn 3% back on anything you swipe on the card, up to
$20,000 within the first year, so that’s already a big
feature already to have. It also has 15 months zero interest, so if you need to pay for a big purchase, which a lot of Apple
products are big purchases, say you’re going to college
or something like that, you need something for school, you need to get a laptop or something, you can pay that off over
time with no interest that you have to pay on it, versus Apple, from what I see, they don’t have a zero interest
or interest-free period from what I’ve seen within the fine print or any other purchase. They could run some type
of special in the store. Who knows, that could
kind of give you that, but as I can see right now, it doesn’t seem really
like they have that, but let’s go back into comparing
it to the Chase Freedom. Now, you get the 3% back with that. You also get the 15
months zero percent APR on that as well, too. The APRs will roughly be about the same after the promotional period ends, but Chase has something
called Shop through Chase. You go through Shop through
Chase, Apple is on there. You get 2% back, actually, if you go through Shop through Chase, click on it, it basically puts
a cookie within your browser, opens up to the Apple website, and if you make a purchase
all the way through there, which you should do, even if
you wanna do in-store pickup, you’ll be able to earn an extra 2% back, so you get 3% on the basic, or 3x on just the purchase alone, then, because you went
through Shop through Chase, you get an extra 2% on top
of that as well, too, or 2x. I know I’m using it interchangeably, but you get my point here. So, basically, you can earn 5% back, versus the 3% back that
you earn from Apple. Comparing that out here, let’s say you make a $2,000 purchase. You need to go to college,
you need a laptop, blah blah blah, iPhone,
ends up being $2,000 in total spending that
you have on there with it. If you just do it through the Apple Card, you’re only gonna get
about 3% of that back. You’re gonna have to pay
interest, probably, over time, and you’re probably
looking at something about a little above $60 or so
back in terms of cash back there with it if I’m doing the math right off the top of my head. That’s nice, but the
interest is gonna sort of eat up the cash back that
you’re getting anyway, so you’re not really benefiting from that. If you do what I said to do and go through Shop through Chase, you’re gonna earn 5% right now on that, which is gonna give you $100 back. You’re gonna have zero interest on that for the next 15 months, and that $100 is in your pocket. That’s cash back that you can take and just throw it into
the bank if you want to, or you can use it to erase some purchases, whichever you wanna do, make
a statement credit, whatever, but the whole idea with
Chase Ultimate Rewards is truthfully to build up
those reward points over time. You really wanna sort of have
a good reputation with Chase, ’cause eventually, if you’re
doing this the right way, you wanna get yourself a better card, more of the travel cards, something like the
Chase Sapphire Preferred or the Reserve Card. Those are two cards I
would definitely recommend there with that. The big benefit of that is, if you’re somebody that’s a travel person, you’re gonna be able to use Chase’s portal to actually get more bang for your buck. So, basically, with Ultimate Rewards, you can actually transfer
points between the cards, so you can take that
hundred bucks that you had, that you got from your Apple purchase, push that down to your
Chase Sapphire Reserve Card, and let’s say you wanna
purchase a trip on there. If you use Reserve, the
Reserve Card gives you 50% more on travel purchases when you go through Chase’s site, so that hundred bucks turns
into $150 worth of travel, and it’s a little bit less than that. It’s about 25% or so if you
just have the Preferred Card. You can flip that hundred
bucks that you get through how I kinda did
the math here on this, to $150 in travel rewards. If you don’t wanna do that, you still get the cash
back as you normally would, and you’re still getting more
cash through Chase’s system than you are going to get
through Apple’s system. And the nice thing
about Chase’s system is, well, I just mentioned
there that going through Shop through Chase, and
the Apple site’s on there, there are tons of sites on
there that are available to earn more bonus cash back on, including with the basic cash back number that you get with the
Unlimited Card there. And a long rant there, but you can see that you
earn a whole lot more doing it in this direction than you would doing it with anything
else, and quite frankly, that’s where I sort of see
the flaws in the Apple Card, why I call it whack, and why
I think you’d be better served with getting other cards. Flex of the decade or being
cool or status symbol, whatever the case may
be, you want it to be, that’s not what you wanna be focused on when you’re talking about
credit and your financials. You wanna get the best bang for your buck. You wanna get the best cash
back you can get for them, and you wanna be as responsible
as you possibly can be, and you also want to get
the best travel benefits that you want to as well, too. All three of those should matter to you when you’re thinking
about the credit cards that you’re getting. I can recommend two channels, or basically three
resources, that you can go to if you wanna learn more
about credit cards. This is where I learned a
lot of this information from. You wanna check out
AskSebby, is one of them, The Credit Shifu is another one, and The Points Guy’s
website is another place and resource to learn a lot about credit card rewards programs and all the little different
sort of point values and systems and sort of how they go about getting the best bang for your buck when it comes to credit
card rewards programs. All right, whew, long-winded there. I know this isn’t quite tech related, but I wanted to get this
information out there, just because I wanted
to make sure you guys got the proper information and get the best bang for
your buck, get the best value, to be honest with you. Questions, comments, concerns, please post them below. Let me know what you guys think here. Thanks for watching. I’ll catch you in the next one, and always remember to
live your tech world in high definition. I need to get a new sign-off, I feel, but I figure I’ll keep that around til I think of a new one. Thanks for watching.

31 thoughts on “Apple Card: What Apple isn’t telling You!!!

  • So glad you made this video. That Apple credit card is the entry-device to put Apple fans into financial ruin. I'm so glad I'm not an Apple fanboy.

  • Some nice points. But I got a 12.99% apr on the Apple Card lowest on the freedom is 17.24 and the sapphire cards seem to have annual fees. Great video all in all.

  • You got some interesting points! Nevertheless, I don't think that they are all relevant. Only speaking prices, cashback, etc: Ok there are better competitors out there. But Apple is selling simplicity, not a cheaper way of making a credit card. People will buy the features and the peace of mind of no longer worrying about expenses, payments, etc. So comparing the all-in-one Apple app bank to Chase's offer where needs to be added some apps to get the same expenses reports each month and all the other features don't really sound like a great option to me. Maybe N26 or some new online banks are?

    Anyway, I will stick to my debit card haha. Great video!

  • I signed up for email updates the moment the card was announced months ago and haven’t received an invite 😑

  • If the Apple Card comes to Germany one day (with the same conditions), it would be a great deal. Since most Germans pay by cash or girocard (national electronic payment system), credit cards aren’t very popular. That’s probably the reason why cash-back credit cards are rare here. And Apple Card world be one of the first credit cards besides Amazon (which has 3% cash back on Amazon purchases and 1% on all others) with cash back.

  • I think 🤔 everyone is getting this wrong.  wants as many people prime or subprime to get this card because an iPhone 📱 is required. More people will keep and/or purchase iPhones 📱 the obtain and keep their shiny new  credit card 💳. In the end, this just perpetuates the annual iPhone 📱 upgrade and purchase cycle.

  • Nope. I don't see how 2% on non-apple purchases is worse. I use Double Cash currently, Costco card for Costco, Amazon prime for amazon. I have Chase Freedom but rarely have use for the categories. I'd rather have the apple card than double cash but will use double cash for non apple pay stores.

    What am I missing?

  • I got 23.99% from apple. I have a 775 fico and always pay in full within the month. It doesn’t matter since I always pay in full but i feel a little disrespected to have received the 23%.

  • Great rundown Sir. While I’m a big Apple fan, I fully understand that the card is another tool for Apple to use to pull you deeper into their ecosystem. Like many other things, if you don’t go in with eyes wide open, you’re going to get taken for a ride.

  • How is Apple making it look better than it is? It told you upfront about the interest rates and cash back. Its not a hidden secret. What makes this appealing is the integration with the ecosystem. Thats a fact. Not trickery. And if its a run of the mill card…why are people saying its bad? Where are your videos about other run of the mill cards? Exactly.

  • Apple is a tech company with a side hustle of a credit card. Chase and Amex issue cards for a living. that is their business. comparing an Apple card to a credit card company is a bit unfair. I will wait for your next video on the Chase sapphire cell phone.

  • basically the only overall arugments in this video is that the rewards aren't that great and other cards offer better stuff this is the only card i have seen on the internet where so many people are bashing it and saying not to get it…apple bashing as usual

  • At what point did apple say this is the best card on the market????? They laid out their ‘perks’ that they’re offering. This is for people that care about privacy and for a that has NOOOO fees – the perks aren’t bad.

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