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The Apple Card launched to much fanfare in 2019, promising to be an effortless, fee-free way to earn high cash-back rewards and track spending. It's since added new features, including access to a high-yield savings account, but unless you're a true Apple aficionado, you'll likely do better with one of the best cash-back credit cards.
Apple Card Review: Is It the Best Credit Card for You?
Apple is well known for its innovative technology, so it's no surprise the Apple Card is equally unique in the credit card space. In fact, it's not even a physical card (unless you want it to be) — one of the card's main selling points is its convenient digital interface that lives right on your iPhone in the Apple Wallet app.
How Apple Card Works
This brings us to a big limitation: Unless you have an iPhone, there's really no reason to consider the Apple Card. That's because you'll need to use the card with Apple Pay to earn a high rate of cash back. While the laser-etched physical card you can request is definitely cool, you'll only earn 1% cash back when you swipe it — a poor rate of return, considering many competing credit cards earn 2% cash back everywhere.
But if you do have an iPhone (or use Apple Pay online, or with an Apple Watch), the Apple Card is a compelling option. When you use the card with Apple Pay, you'll earn 3% cash back on purchases made from Apple and at select merchants, including Uber, Exxon Mobil, and Walgreens, and 2% cash back on all other Apple Pay transactions. Any other purchases made with the physical card earn 1% cash back.
And the Apple Card actually earns cash, in real time. "Daily Cash" is Apple's version of cash back, and you'll earn it on every transaction and see it in your Apple Cash balance each day. From there, you can spend it on purchases using Apple Pay, apply it as a credit toward your card balance, invest it in a linked Apple high-yield savings account, or pay a friend who also uses Apple Cash.
The card comes packed with other nifty features, including color-coded spending categories, an integration with Apple Maps to see where you spent money, a slider tool that shows you how much interest you'll be charged based on your payment amount, and the ability to share the card with others through Apple Card Family.
Plus, there are no fees to worry about: no annual fee, late fees, or foreign transaction fees. While there are plenty of great no-annual-fee credit cards on the market, the complete lack of fees on the Apple Card makes it stand out.
However, there's another significant drawback. The Apple Card doesn't offer a welcome bonus, which is unusual for a rewards credit card, even one without an annual fee. This, combined with the requirement to use the card with Apple Pay to earn competitive cash back, makes the card much less appealing.
You'll want to closely compare the Apple Card to cards like the Wells Fargo Active Cash® Card, which earns 2% cash rewards on purchases and comes with a welcome offer of a $200 cash rewards bonus after spending $500 in purchases in the first three months from account opening. Or, if you already use Apple Pay, consider the U.S. Bank Altitude® Reserve Visa Infinite® Card , which earns 3 points per dollar for all mobile wallet purchases (worth up to 4.5% back toward travel) and offers 50,000 points after you spend $4,500 on purchases in the first 90 days of account opening.
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Discover it® Cash Back
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Chase Freedom Unlimited®
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Wells Fargo Active Cash® Card
We're focused here on the rewards and perks that come with each card. These cards won't be worth it if you're paying interest or late fees. When using a credit card, it's important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.
Apple Card Rewards
Apple Card welcome bonus offer
The Apple Card doesn't offer a welcome bonus.
How to earn rewards from the Apple Card
You'll earn the most rewards from the Apple Card when you use it with Apple Pay (on your iPhone, with an Apple Watch, or online). Otherwise, if you use the physical card, you'll earn 1% cash back.
Using the card with Apple Pay, cardholders earn:
- 3% Daily Cash back on purchases from Apple (including merchandise, accessories, App Store purchases, and services like Apple Music and Apple TV+)
- 3% Daily Cash back at Ace Hardware, Duane Reade, Exxon, Mobil, Nike, Panera Bread, T-Mobile, Uber, Uber Eats, and Walgreens
- 2% Daily Cash back on all other purchases made using the card with Apple Pay
Apple says Apple Pay is accepted by 85% of US merchants, but you might have trouble using it at smaller stores (or even large ones, like Walmart and Home Depot). One upside to Apple Pay is its safety and security; you don't need to touch anything to use it, and transactions require unlocking your Apple Wallet using Face ID or your passcode.
There are a few restrictions to keep in mind with some of the participating 3% merchants:
- Ace Hardware: 3% Daily Cash is available in the US when using Apple Card with Apple Pay online, in the mobile app, and at participating stores listed at acehardware.com/applecard (excludes online and mobile app gift card purchases and purchases from third-party merchants using independent point-of-sale systems within a participating Ace Hardware store).
- Exxon/Mobil: 3% Daily Cash is available in the US when using Apple Card with Apple Pay (where available) at Exxon- or Mobil-branded pumps and attached convenience stores; you can pay at the pump with Apple Pay by using the Exxon Mobil Rewards+ mobile app or contactless payment (excludes purchases at third-party merchants, including independent car washes, located within an Exxon- or Mobil-branded location or the attached convenience store).
- Nike: 3% Daily Cash is not available at Nike-branded stores outside the US.
- Panera Bread: 3% Daily Cash is not available at Panera locations outside the US, and excludes orders made on third-party apps, plastic gift card purchases made online, and gift cards purchased through the Bulk Gift Card program.
- T-Mobile: 3% Daily Cash is available in T‑Mobile US stores, and bill payments and AutoPay on t‑mobile.com and in the T‑mobile app (authorized T‑Mobile dealers, Sprint account payments, and purchases made through any Sprint checkout, including those at T‑Mobile US stores, are not eligible).
- Walgreens: 3% Daily Cash is not available at Sprint Express and independent health service providers, including Walgreens Optical and Walgreens Hearing, or for orders made on third‑party delivery apps.
How to use rewards from the Apple Card
The Apple Card has a big advantage when it comes to ease of redeeming rewards. As the name implies, Daily Cash is deposited to your Apple Cash account every day and is available for you to use immediately. Even the best credit cards don't have this feature; in many cases, you'll have to wait until your billing cycle closes to receive and redeem your rewards.
Daily Cash from your Apple Card is deposited to your Apple Cash card in your Apple Wallet account, and from there use it just like cash to buy merchandise, pay down your credit card balance, or pay friends back if they also have an Apple Cash account set up.
Alternately, as a cardholder, you can open a Apple Savings account, which currently pays 4.15% APY (Average Percentage Yield) — a very strong rate of return. Your Daily Cash will be deposited to your Apple Savings account once it's set up.
Apple Card Benefits and Features
Unlike many top rewards credit cards, the Apple Card doesn't offer common perks like purchase protection, extended warranty, travel insurance, or cell phone protection. That said, it does offer useful benefits that can help you save money on interest and streamline your finances.
Easy application and card use
To apply for the card, you can simply open the Apple Wallet app and press the "+" icon. Once you're approved, you can start using your card through Apple Pay immediately, and if you wish, you can also request a physical card in the mail. Even though using the actual card only earns 1% cash back (so you'll probably want to avoid this), it is a pretty slick-looking card.
Track spending and save on interest
Apple says it wants to help users with their financial health by making it easy to see how much they're spending or saving. To that end, there's no separate app or website to log into if you want to see your transactions, spending totals, or even where you've spent money — it's all accessible via the Wallet app.
Another neat feature is Apple's payment calculator, which also lives in the Wallet app. When you're ready to make a payment, a sliding tool helps you see how much interest you'd pay based on the payment amount you choose, instead of just listing the minimum payment due.
Apple Savings
The best high-yield savings accounts pay a higher interest rate than regular savings accounts, and Apple's new Savings account for Apple Card customers is no exception. It currently offers 4.15% APY, which is competitive with popular national brand high-yield savings accounts like SoFi Checking and Savings, Discover Online Savings, and Capital One 360 Performance Savings.
Choosing to deposit the Daily Cash earned from your Apple Card to Apple Savings is effortless, which is great if you don't already have automated transfers to a high-yield savings account set up. You can also transfer more funds to Apple Savings from your Apple Cash balance, from the bank account linked to your Apple Card, or from a different bank account.
Apple Card Family
Apple allows you to share your card with one co-owner and up to four other participants in a single account. Co-owners must be 18 or over and can manage and share responsibility for the account, and equally build credit history. Participants aged 18 and up can also build credit history, and those aged 13 to 17 can spend within limits and earn daily cash.
Apple Card Monthly Installments
Apple Card cardholders have the option to set up interest-free monthly installments when they use the card for eligible purchases from Apple.com, the Apple Store, or the Apple Store App. To set up a payment plan, choose Apple Card Monthly Installments as your payment method at checkout.
Depending on the product you buy (there's a list of eligible items here), you'll get a 0% APR for six, 12, or 24 months with one installment due each month. This is a handy feature if you're the type of person who always wants the latest iPhone or AirPods, but keep in mind there are plenty of zero-interest credit cards that offer an intro 0% APR on new purchases for up to 21 months.
Apple Card Annual Fee and Other Costs
The Apple Card doesn't charge fees for anything, which is a refreshing change from most other rewards cards. You won't pay an annual fee, foreign transaction fees, late payment fees, or over-limit fees.
You will, however, pay interest if you carry a balance (currently a 15.99% - 26.99% Variable APR). But you can avoid interest by paying your card balance in full each month, or if that's not possible, using the interest calculator tool in the Wallet app can help you make better-informed decisions about payment amounts.
How the Apple Card Compares
Apple Card vs other store credit cards
Apple Card | Prime Visa | Costco Anywhere Visa® Card by Citi | |
Annual fee | $0 | $0 (with a Prime membership) | $0 |
Rewards rate | 3% cash back at Apple when you use Apple Pay (Apple stores, App Store, and Apple services) 3% cash back at select merchants* when you use Apple Pay 2% cash back at other merchants when you use Apple Pay 1% cash back when you use the physical card
| 10% back or more on select products* 5% cash back at Amazon*** 5% cash back at Whole Foods*** 5% cash back on travel booked through Chase Ultimate Rewards 2% cash back at restaurants, gas stations, and on local transit and commuting (including rideshare) 1% cash back on everything else | 4% cash back on eligible gas and EV charging worldwide (on up to $7,000 in spending per year, then 1%) 3% cash back on restaurant and eligible travel purchases worldwide 2% cash back on all other purchases from Costco and costco.com 1% cash back on all other purchases |
Welcome bonus offer | N/A | $200 Amazon gift card upon approval of your credit card application | No publicly available bonus (though you may be targeted) |
Card benefits | Apple Savings Apple Card Family Apple Card Monthly Installments No foreign transaction fees | Secondary car rental insurance Baggage delay insurance Lost luggage reimbursement Travel accident insurance Extended warranty Purchase protection Travel and emergency assistance Roadside dispatch Access to Visa Signature Luxury Hotel Collection Visa Signature Concierge Cardholders can choose a 0% APR on purchases of $50 or more for six to 12 months (then a 19.49% - 27.49% Variable APR) instead of cash back at Amazon checkout No foreign transaction fees | Can be used as your Costco membership card No foreign transaction fees |
Review |
*With the Apple Card using Apple Pay, eligible 3% cash-back merchants are Ace Hardware, Duane Reade, Exxon, Mobil, Nike, Panera Bread, T-Mobile, Uber, Uber Eats, and Walgreens
Apple Card vs other 2% cash back credit cards
Apple Card | Wells Fargo Active Cash® Card | Citi® Double Cash Card | |
Annual fee | $0 | $0 | $0 |
Rewards rate | 3% cash back at Apple when you use Apple Pay (Apple stores, App Store, and Apple services) 3% cash back at select merchants* when you use Apple Pay 2% cash back at other merchants when you use Apple Pay 1% cash back when you use the physical card | 2% cash rewards on purchases | 1 point per dollar (1% cash back) when you buy, plus 1 point per dollar (1% cash back) when you pay your bill |
Welcome bonus offer | N/A | $200 cash rewards bonus after spending $500 in purchases in the first three months from account opening | N/A |
Card benefits | Apple Savings Apple Card Family Apple Card Monthly Installments No foreign transaction fees | 0% intro APR on purchases and qualifying balance transfers for 15 months from account opening (then a 20.24%, 25.24%, or 29.99% variable APR) Cell phone protection Visa Signature Concierge Roadside dispatch Travel and emergency assistance services Emergency cash disbursement and card replacement Access to the Visa Signature Hotel Collection | 0% intro APR on balance transfers for 18 months, then a 19.24% - 29.24% Variable APR Access to Citi Entertainment |
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*With the Apple Card using Apple Pay, eligible 3% cash-back merchants are Ace Hardware, Duane Reade, Exxon, Mobil, Nike, Panera Bread, T-Mobile, Uber, Uber Eats, and Walgreens
Apple Credit Card Frequently Asked Questions (FAQ)
The Apple Card is worth it if you're an iPhone user who frequently buys Apple products or shops at participating merchants that earn 3% Daily Cash back. But if you don't usually shop at these merchants, or frequent stores that don't accept Apple Pay, the Apple Card is probably not for you.
When you apply for the Apple Card through the Wallet app and get approved, your virtual card is immediately active and ready to use through Apple Pay. However, if you request a physical card through the mail, you'll just need to hold your phone close to its packaging when you receive it. Your phone will automatically activate the card.
The easiest way to apply for Apple Card is through the Wallet app on your iPhone. However, you can also apply online by signing in with your Apple ID and providing the required details that way.
To make a payment on your Apple Card, you'll first need to link a bank account in your Apple Wallet or by signing in at card.apple.com. Then you can make a payment through either platform. You can also make payments from your Apple Cash card balance.
Yes, the Apple Card is a credit card. It's issued by Goldman Sachs and operates on the Mastercard network.
If you need your credit card number, you'll find it in your Apple Wallet when you select your Apple Card, in the top menu with the little credit card and number icon. The card number isn't printed on your Apple Card, which makes it even more secure.
Methodology: How We Reviewed the Apple Card
Insider's credit card team reviewed the Apple Card in comparison to similar no-annual-fee cash-back cards and to cards from stores that stock Apple products (like Amazon and Costco). We evaluated several factors, including:
- Ease of use — Does the card make it easy to earn and redeem rewards? Are there hoops to jump through, useful bonus categories, spending caps, or other restrictions?
- Earning potential — Is there a welcome bonus, and is it competitive with similar cards? Are the card's earning rates as good or better than cards in the same category?
- Benefits — Does the card offer useful benefits that save cardholders money, time, or effort? Are there perks that are unique to the card?
- Fees — Is there an annual fee, or other charges like foreign transaction fees and late fees? Does the card charge a high APR when you carry a balance?
You can read more about how we rate credit cards at Insider for a deeper dive into our methodology.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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