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Loyal Apple consumers may wonder if the Apple Card lives up to the hype and whether the no-fee card is truly the best choice for Apple purchases.
Below, CNBC Select breaks down all you need to know about the Apple Card — from the cash-back program to fees, payments, fine print, privacy and security.
Apple Card
Rewards
3% cash back on goods or services purchased directly from Apple (including Apple retail stores, the Apple online store, the App Store, iTunes, Apple Music and other Apple-owned properties) on Uber and UberEats, at Walgreens and Duane Reade stores, on the Walgreens app and on Walgreens.com, in T-Mobile stores, at Nike, at Exxon and Mobil stations and at Panera Bread, 2% cash back on Apple Pay purchases and 1% cash back on all other purchases
Welcome bonus
None
Annual fee
$0
Intro APR
None
Regular APR
19.24% to 29.49% variable
Balance transfer fee
None
Foreign transaction fee
None
Credit needed
N/A
Terms apply.
Pros
- No annual fee
- 3% cash back on goods or services purchased directly from Apple, on Uber and UberEats, at Walgreens and Duane Reade stores, on the Walgreens app and on Walgreens.com and in T-Mobile stores and at Nike
- No fee charged on purchases made outside the U.S.
Cons
- Apple Pay isn’t accepted everywhere
- Purchases with the physical card only earn 1% cash back
- No special financing offers or welcome bonus
Benefits and perks
The card is similar to the design of many Apple devices — simple and efficient. The Apple card benefits are pretty straightforward, but perfect for someone who wants a simple cash-back card experience. The card comes with:
- 3% Daily Cash back on purchases at Apple and select merchants when you use Apple Pay
- Digital budgeting tools in Apple Wallet app
- Access to Apple Card Monthly Installments for Apply purchases
- Joint co-ownership to build credit with a partner or spouse
- Ability to connect directly to a high-yield savings account
- 24/7 call and text support
How to earn and redeem cash back
Apple refers to cash back as "Daily Cash," and cardholders can earn it at a rate of 3% cash back on goods or services purchased directly from Apple (including Apple retail stores, the Apple online store, the App Store, iTunes, Apple Music and other Apple-owned properties) and these select merchants:
- Uber and UberEats
- Panera Bread
- Walgreens (in-store, on the app or website)
- Ace Hardware
- T-Mobile
- Nike
- Exxon and Mobil stations
- Duane Reade
All other purchases will earn 2% cash back on Apple Pay purchases and 1% cash back on all other purchases.
If you regularly make purchases at Apple, it may seem like a no-brainer to use the Apple card — but you may find other cards with higher rewards.
For example, the U.S. Bank Cash+® Visa Signature® Card offers 5% cash back in two categories of your choosing, on up to $2,000 in combined purchases a quarter. According to a U.S. Bank spokesperson, the card's "electronics stores" category includes Apple Store in-store and online purchases while the "TV, internet and streaming services" category includes most purchases made through the App Store, Apple Music and iTunes.
Daily Cash can be used in a number of ways: applied as a statement credit to your Apple Card balance, spent like cash through Apple Pay, transferred to a bank account or sent to friends via iMessage. Unlike some rewards cards, the value of Daily Cash is the same, no matter how you redeem it.
If you don't have an active Apple Cash card, your cashback accrues in your Apple Card account, and you can manually redeem it through the Wallet app.
You can also set up a Savings account through Apple. This will allow your Daily Cash to be deposited into a high-yield savings account that earns 4.40% APY. You can deposit additional funds from an external bank account or your Apple Cash balance.
Compare offers to find the best savings account
Rates and fees
The Apple Card has no fees whatsoever. There are no annual fees, foreign transaction fees or late payment fees.
The current variable APR is 19.24% to 29.49% based on your creditworthiness, which is in line with other popular cashback cards on the market.
Through using this card users also gain access to Apple Card Monthly Installments. This method will allow users to pay for new Apple products via monthly interest-free installments, and the payments will automatically be added to the minimum payment due on their Apple Card.
Card comparison
If you're an Apple fanatic, this card may seem like a must-have to go along with your iPhone. However, it may not be the highest-rewards credit card for your purchases. So if you're looking to earn heaps of cash back, you may want to consider these cards below.
The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- No annual fee
- Travelers face a foreign transaction fee
- Intro APR only applies to balance tranfer
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
The Citi Double Cash® Card is a solid cash-back card for consumers who want ease of use and high rewards. As you spend on the card, you will earn: 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel. And if you have lingering credit card debt, the card offers a valuable 0% intro APR on balance transfers for 18 months (17.49% - 27.49% variable afterwards). There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
While you can earn up to 3% cash back on Apple products and select merchants when you use the Apple card, it's likely the overwhelming majority of your purchases will be outside of those categories.
But regardless of your card preference, be sure to run the numbers based on your spending habits to see which card will make the most sense.
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
- High cash-back earnings for U.S. supermarkets and streaming services
- Intro-APR offer for purchases and balance transfers
- No annual fee for the first year
- It's less rewarding after the first year because of the annual fee
- Bonus rewards for U.S. supermarkets are capped
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
The Blue Cash Preferred® Card from American Express is another great cash-back card, with tiered rewards for different purchases. As you spend on the card, you will earn:
- 6% cash back for every dollar spent at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%),
- 6% cash back for every dollar spent on select U.S. streaming subscriptions
- 3% cash back for every dollar spent at eligible U.S. gas stations, transit including taxis/rideshare, parking, tolls, trains, buses and more
- 1% cash back for every dollar spent on other purchases.
Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
The card comes with a welcome offer. Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
This card may net you higher rewards than the Apple Card as you can earn significant savings on both your streaming subscriptions and groceries.
Pros and cons
The Apple credit card provides users with Daily Cash back and rewards of up to 3%, but users who are looking for diverse perks like lounge access or sign up bonuses might consider looking at some other options.
Pros
- Daily Cash back: Apple card users can not only earn up to 3% Daily Cash back at participating stores when using Apple Pay, but they also get access to those rewards the same day. Users also earn 2% when using Apple Pay and 1% when paying with the physical card.
- No Fees: Many rewards credit cards come with annual fees or foreign transaction fees, but the Apple card is rid of them all.
- Access to Apple Card Monthly Installments: This payment plan allows users to pay for Apple products in interest-free installments.
- Can deposit Daily Cash into a Savings account: You can set up your Daily Cash to be deposited into a high-yield savings account to grow for future spending.
Cons
- Lower rewards when using the physical card: If you aren't using Apple Pay for your purchases, you're likely only earning 1% cash back and probably could be getting more competitive rewards.
- No special financing or welcome bonuses: The Apple card doesn't offer balance transfer or cash advance options or a welcome bonus for new customers.
- Apple Pay isn't accepted everywhere: According to Apple's site, Apple Pay is accepted at over 85% of retailers in the U.S., but that does leave a chunk where you won't be able to use a staple feature of this card.
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Who the Apple credit card is best for
The Apple Card is a great choice if you're a loyal fan of the brand and own an iPhone, are looking for a card that seamlessly integrates with the Wallet app and don't mind sacrificing some credit card rewards earning potential. It could also be beneficial to someone who regularly makes purchases with Apple or the select merchants listed above.
Additionally, this card is a good fit for someone who plans on making a large purchase through Apple and wants interest-free payments on their purchase.
However, if you don't have an iPhone or want a card with an introductory 0% APR period on non-Apple purchases, you might consider alternative rewards credit cards or balance transfer cards. You may also want to consider other cards if you're looking for more premium perks like airport lounge access or built-in travel insurance.
FAQs
Is the Apple Card a beginner card?
The Apple Card isn't typically recommended for newer users due to its higher credit score requirements; other beginner cards are often easier to get approved for.
Who accepts the Apple Card?
You can use the Apple Card wherever Apple Pay is accepted, and the physical card wherever Mastercard is accepted.
What credit score do you need to get the Apple Card?
According to the Apple site, the Apple Card considers credit scores above 660 to be favorable for approval.
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Information about the Apple Card and U.S. Bank Cash+® Visa Signature® Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the cards prior to publication.
For rates and fees of the Blue Cash Preferred® Card from American Express, click here.
