Apple is rolling out a credit card that it says is designed to do things no other card can. So how does it actually stack up?
It looks different from a traditional credit card – there’s no number on the front and the users’ name is etched in metal. The card expands the company’s digital Apple Pay services, marrying the physical card to a virtual one and integrating both with the iPhone. And it comes with a bevy of perks – quick sign-up, elimination of most fees, strong security protections and cash back. But industry experts say they aren’t impressed – the financial benefits mirror many of those already out there for consumers.
WHAT DOES IT COST?
Apple says there are no fees associated with the card. That means no late fee, no annual fee, no international fee and no over-the-limit fees. It also said it aims to have among the lowest interest rates in the industry. Users must have an iPhone to use the card, which comes at a cost. But they will earn cash back on their purchases – 3 percent on Apple purchases, 2 percent on those with the virtual card and 1 percent with the physical card.
“I’m underwhelmed,” said Ted Rossman, industry analyst at Creditcards.com. “People will sign up for it, but that will be mostly because they love Apple, not because this card is better than anything that already exists.”