PSA: Apple Card's Interest Rate is Rising as Fed Battles Inflation

[MacRumors]

As is common with most credit cards, the Apple Card's interest rate on overdue balances is steadily rising as the Federal Reserve continues to raise its benchmark overnight interest rate in an attempt to slow inflation in the United States.

As of July 1, the Apple Card's variable APRs now range from 12.49% to 23.49% based on creditworthiness, compared to 11.74% to 22.74% previously. This is in line with the Fed's 0.75 percentage point increase to its overnight rate in June.

Apple Card interest rates were as low as 10.99% to 21.99% for much of 2020 and 2021 as the Fed lowered rates in response to the COVID-19 pandemic.

According to The Wall Street Journal, the Fed is expected to announce another 0.75 percentage point increase to its overnight rate later today, which means the Apple Card's APR range will likely see another increase to 13.24% to 24.24% based on creditworthiness. This would be the Apple Card's highest interest rate range since 2019.

All in all, if you are carrying an overdue balance on your Apple Card, be aware that interest charges have been increasing and will cost you extra.

Apple Card remains limited to the United States.

Article Link: PSA: Apple Card's Interest Rate is Rising as Fed Battles Inflation

 

[Airforcekid]

Interest is irrelevant pay in full each month if you find yourself paying interest switch to cash/debit and pay it off ASAP you will not come out ahead with 1-2% rewards like most people seem to think.

 

[PinkyMacGodess]

Interest is irrelevant pay in full each month if you find yourself paying interest switch to cash/debit and pay it off ASAP you will not come out ahead with 1-2% rewards like most people seem to think.

Yes, those 'rewards' are crazy. Spend $100 and get 2% back? Hey, and you pay 100% of that cost first. What a con job...


EDIT: I'm surprised so many people are falling for that ploy! It definitely hit a nerve, my comment... It's like buying $150 of stuff you don't need to get 'free shipping'. I've done that a few times, and it's a joke. I had one order that was like 5 bucks short,a nd they would not budge, yet the cheapest thing they had was over 20 bucks. Shipping was $15. What a sick joke...

 

[BootsWalking]

As is common with most credit cards, the Apple Card's interest rate on overdue balances is steadily rising as the Federal Reserve continues to raise its benchmark overnight interest rate in an attempt to slow inflation in the United States. As of July 1, the Apple Card's variable APRs now range from 12.49% to 23.49% based on creditworthiness, compared to 11.74% to 22.74% previously. This is in line with the Fed's 0.75 percentage point increase to its overnight rate in June.

Just for reference, the current Federal Reserve Fed Funds rate is 1.58%, which includes all the recent interest rate increases. Yet credit card rates are 12% to 23%. This isn't unique to Apple's card but demonstrates how twisted and corrupt the financial industry is in our country. Cheap money is handed out but only to banks and they in turn lend that out at 20%. Must be nice to be one of the chosen financial businesses who are virtually guaranteed by the Fed to make a profit.

 

[TheYayAreaLiving 🎗️]

I love my Apple Card but it is time to call Apple Card and have my interest waived.

Also, any active military members can take advantage of Apple Card's SCRA military program. If asked, an Apple Card specialist will submit your application and the interest rate can be dropped to 4% to 6%.

 

[WestonHarvey1]

Never finance purchases unless you have no other choice. If you do, aim to pay it off in 3 months, not 10 years.

 

[Mr. Dee]

Interest is irrelevant pay in full each month if you find yourself paying interest switch to cash/debit and pay it off ASAP you will not come out ahead with 1-2% rewards like most people seem to think.

The Apple Card is FANTASTIC!

 

[Scott6666]

This some kind of surprise? And so far it’s a pretty small increase.

 

[chairguru22]

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.

I don’t think it works like that. My credit score is fine and I pay off in full every month. Save yourself the money.

 

[Joe Rossignol]

This some kind of surprise? And so far it’s a pretty small increase.

It could be a surprise for some people, which is why it's labeled as a PSA

Also, to be honest, it's just the middle of summer and there is not much going on in the world of Apple right now.

 

[TheYayAreaLiving 🎗️]

This some kind of surprise? And so far it’s a pretty small increase.

To fight the inflation, Apple could just increase the Apple Cash rewards incentives.

 

[mnsportsgeek]

Can't imagine why anyone would pay 13%+ interest on something.

 

[mansplains]

While I disagree with some of Ramsey's financial advice, paying off debt and avoiding credit use is a huge step forward. Thankfully I don't have to use my credit cards, I only use them for better fraud safeguards (as debit is awful in this regard) and to maintain my excellent credit. I only use my Apple Card for installments with Apple, so interest increases don't affect me. However, it really sucks when you have no other option but to incur interest penalties to make ends meet. The compound interest on credit cards buries you deeper. My brother opted to take some personal loans to pay off his credit years ago and he's still struggling.

 

[jent]

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.

I think this is a widely held myth. I don't know where it came from but I would recommend always paying in full.

 

[Mlrollin91]

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.

You can carry a balance at the end of the statement and not pay interest. As long as you pay off the previous statement balance before the following statement closes, you won’t pay interest but it will still show that the card is being used. The statement balance is reported.

It’s been long proven as a myth that carrying a balance and paying interest increases your credit score.

https://www.consumerfinance.gov/about-us/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/#:~:text=Paying%20off%20your%20entire%20balance,you're%20also%20paying%20interest.

 

[Premium1]

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.

Which is so dumb. Pay off everything on time? Let's knock down that credit score. it should be the opposite, but credit scores are another scam of financial institutions.

 

[BeefCake 15]

I love my Apple Card but it is time to call Apple Card and have my interest waived.

What do you mean by interest waived?

 

[4743913]

Can't imagine why anyone would pay 13%+ interest on something.

imagine voting for this..

 

[cateye]

Can't imagine why anyone would pay 13%+ interest on something.

Because people are constantly spending beyond their means. There is never a justification for carrying a balance on a credit card with their usurious rates. Pure robbery, and a free money gift from you to the credit card company to pad their profits. Save, then buy. Can’t save? Then you can’t afford it.

 

[TheYayAreaLiving 🎗️]

What do you mean by interest waived?

Call Apple and tell them to waive the interests. Many times they have honored me without a hassle. They have a limited amount of credits available that can be applied towards the balance.

 

[mikethemartian]

As is common with most credit cards, the Apple Card's interest rate on overdue balances is steadily rising as the Federal Reserve continues to raise its benchmark overnight interest rate in an attempt to slow inflation in the United States. As of July 1, the Apple Card's variable APRs now range from 12.49% to 23.49% based on creditworthiness, compared to 11.74% to 22.74% previously. This is in line with the Fed's 0.75 percentage point increase to its overnight rate in June.

Just for reference, the current Federal Reserve Fed Funds rate is 1.58%, which includes all the recent interest rate increases. Yet credit card rates are 12% to 23%. This isn't unique to Apple's card but demonstrates how twisted and corrupt the financial industry is in our country. Cheap money is handed out but only to banks and they in turn lend that out at 20%. Must be nice to be one of the chosen financial businesses who are virtually guaranteed by the Fed to make a profit.

Credit cards are unsecured loans. If you want to pay a lower interest rate get a loan where you have to put forth collateral.

 

[fenderbass146]

Makes sense, the fed needs to get more aggressive if they want to curve inflation. Short term pain, better then long term suffering.

 

[cocky jeremy]

Make it 100%, I don't care. I pay mine off every month anyway.

 

[DocMultimedia]

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.

Not true. I haven't had a balance on my credit cards in decades, and my current score is over 840. Most banks will now show you exactly what causes a monthly change in your score. Mine took a minor ding when I had a credit check done for a new credit card, and they showed that as the reason. Very clear.

 

[centauratlas]

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.

You may want to check on that. I use whatever card gives the best rewards - Eg Apple Card for its 3% where available. Other cards like 2.62% minimum. But pay it off every month and my score is 839-850 depending on where I look.

I expect that just charging and paying it off in full will help your score.