The best Apple Card benefits are rewards of up to 3% back on purchases, $0 fees, easy integration with Apple products, and the possibility of low APRs. Also, the Apple Card is made of titanium and doesn’t have a card number on it, which makes it less susceptible to fraud and gives it a sleek look.
The Apple Card’s benefits don’t include many things traditionally offered by other credit cards, such as travel insurance, rental car insurance, purchase protection or extended warranties. But issuers have been cutting down on those benefits in recent years, anyway.
Here are the best Apple Card benefits:
Lots of cash back: Purchases made using the card through Apple Pay earn 2% cash back, while purchases that don’t go through Apple Pay earn 1% back. Purchases from Apple are the exception, earning 3% whether you use Apple Pay or just swipe/dip your card.
Plus, unlike other credit cards, the Apple Card offers its cash back on a daily basis. So, the day a purchase processes, the cash back will appear in your account. You can use cash back to make purchases with Apple Pay, pay your credit card bill, or make a transfer to your bank account.
No fees: The Apple Card has a $0 annual fee. It also has a 0% foreign transaction fee.
Potential low APR: Depending on your overall creditworthiness, the interest rate that you’re assigned could be anywhere from a low of 10.99% (V) to 21.99% (V) at the most. The average credit card offer currently has a regular APR of roughly 18%.
Integration with Apple products: The Apple Card is integrated with Apple Pay and the Wallet App, allowing you to easily track your purchases as well as use Face ID or Touch ID to authorize purchases. You can make purchases using your phone when you don’t have your card on hand, as well.
Virtual card numbers: You can use the Wallet app to generate virtual card numbers to further protect yourself from fraud while shopping online.
Metal card: The Apple Card is made of titanium, giving it a sleek, prestigious look that’s in line with Apple’s brand.
While the Apple Card’s benefits don’t include some traditional perks, the card does provide a lot of useful features that make it a worthwhile addition to your wallet – if you love Apple products and services.
There are some differences between Mastercard and Visa. But these two major card networks are pretty equal in the categories that matter most to consumers: acceptance and secondary benefits.
Both Visa and Mastercard are accepted in more than two hundred countries. And it is very rare to find a location that will accept one but not the other. Furthermore, both Visa and Mastercard administer certain benefits programs, including … read full answerrental car insurance and extended warranties. But individual card issuers decide what coverage cardholders receive.
So it doesn’t really matter whether you have a Visa or Mastercard in your wallet. As long as you have at least one of them and your card offers competitive terms, you’ll be in good shape. If you’d like to learn more about the similarities and differences between Visa and Mastercard, including how the best credit cards on each network compare, check out WalletHub’s complete Visa vs. Mastercard review.
There are many advantages and disadvantages of credit cards, but the advantages largely outweigh the disadvantages because bad outcomes are easily avoidable. Credit cards are a convenient way to build credit, finance purchases, convert currency and more. But they can also lead to expensive debt if used irresponsibly, and that could lead to costly credit score damage. There are plenty of other good and bad things to be said about credit cards when you really put them under the microscope. So let’s dive into some of the biggest … read full answerpros and cons.
Here are the biggest advantages of credit cards:
Credit building. Credit card issuers report your account details (utilization, payment, etc.) to major credit bureaus every month. This gives you a regular opportunity to add positive information to your credit reports, which will improve your credit standing. You can even benefit simply by opening a credit card and locking it in a drawer. Having a positive credit history will make a lot of your biggest decisions in life go smoother. You’ll more easily be able to purchase a car or a home, and you may even have better employment chances.
Convenience. If you have a credit card, you don’t need to worry about carrying lots of cash at all times. Most merchants accept credit cards. And unlike cash, credit cards are easily replaceable and give you a $0 liability guarantee for fraudulent transactions. They also allow you to make purchases now and pay later.
Rewards. Credit cards often reward you for buying things by giving you cash back, miles or points. This can lead to savings on trips, merchandise, gift cards or your credit card bill in the future.
Benefits. Credit cards usually come with some benefits built into them for no extra cost. For example, you might get insurance for car rentals and accidents while traveling. You might get purchase protection to replace damaged or stolen items you bought with your card. And your purchases could receive extended warranties, among other perks that vary card to card.
Here are the biggest disadvantages of credit cards:
Easy to overspend. Since you’re not using physical money or a checkbook and don’t have to pay right away, credit card purchases may not feel quite as expensive when you make them. So it’s easy for balances to get away from you if you’re not careful. One of the best ways to avoid overspending with a credit card is to use the Island Approach. That means using one credit card for nothing but everyday purchases that you should be able to pay off by the due date every month. If interest charges ever show up on that account, it will mean you’ve been overspending. If you have a credit card balance that you’re carrying from month to month, or you’re planning to make a purchase that will lead to one, you should use a separate card for that. This will help you get the best collection of credit card terms, save more money and avoid spending too much. Making a budget and tracking your spending to keep yourself honest is a wise idea, too.
High interest rates. If you don’t pay your balance in full by the due date, you will have to pay interest to the credit card company. And those interest charges will accrue at a very high rate. The average interest rate for all new credit card offers is 18.78%. The more interest charges you rack up, the higher your minimum monthly bill payments will be. And missed payments can lead to even more costly penalty rates as well as credit score damage.
Fraud. Fraudsters couldsteal your credit card number and make purchases in your name. But so long as you report any such transactions, you won’t have to pay for them.
Confusing terms. Credit card terms and conditions aren’t always the easiest to understand. In some cases, people end up being surprised by certain interest rates, charges or limits because the credit card company presented them in a confusing manner. The best way to avoid such a fate is to do your research when choosing an account. Focus on the types of things that are likely to affect you most, based on how you plan to use the card. WalletHub has also done lots of research on the credit card market, including a complete breakdown of the various benefits each major credit card issuer offers with its cards. Hopefully, that will help you better understand what you’re getting into.
Multiple ways to hurt your credit. It’s not just missing payments that will hurt you. Applying for a card causes your score to dip temporarily, and using over 30% of your credit line is also bad for your credit. But setting up automatic monthly payments from a bank account, not applying for a new account in the months leading up to mortgage shopping, and either spending less or paying your bill more should help you avoid negative outcomes.
You should get a credit card. It will make everyday spending more convenient and can help you improve your credit standing. But at the same time, you should be aware of the drawbacks and sure to protect yourself. As long as you spend reasonably, pay off your purchases, check your credit report and score often and keep your utilization at a good level, you should benefit greatly.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.