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PSA: Apple Card's Interest Rate is Rising as Fed Battles Inflation
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Also, retailers mark up their prices to pay the credit card fees. So, when you make a purchase at the retail price paying in cash you are still paying the merchant’s credit card fees. Sometimes, when you make a purchase at a mom and pop retailer you can get a cash discount.
This won’t bother me as I always pay off my credit cards before they’re due. I only use credit cards for fraud protection. (There’s not as much that can be done if your debit number is leaked.)
IMO, anyone who even considers using a credit card for financing when not 100% unavoidable should cut up their credit cards ASAP.
IMO, anyone who even considers using a credit card for financing when not 100% unavoidable should cut up their credit cards ASAP.
Steve Jobs would never have allowed this to occur. He would have given free money to all Apple users by now.
Thanks, Tim!
Thanks, Tim!
In the beginning of my career, I accumulated some credit card debt that took me a few years to pay off. After making the last payment, I promised myself never to make this mistake again. Nowadays, I pay my credit cards in full every month.
Yup. Trump's covid stimulus and insistence on keeping rates low all those years have really messed us up, but people still support him.
So are the "loans" the Fed hands out to its member banks via the FF window. We witnessed how true this was during the 2008 financial crises.
Yup. Same here. I pay off all cards monthly, some twice per month, and my scores are great. Something else is holding them back.
One more reason why credit cards or convenience only and always to pay them off completely every month otherwise he shouldn't have one.![]()
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.
![apple-card-1-iPhone-13.jpg]()
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
I use Apple Pay with my Apple Card everywhere it’s accepted. For places that don’t accept Apple Pay I use an alternative credit card. Never use a debit card. If a thief gets your information that money is gone and it can take weeks to get it back. Instead always use a credit card, check the balance(s) on a daily and pay it off as you use it. If you notice fraudulent charges you’re not in the hook to pay the money. Instead you can dispute the charge(s), the card issuer will put a hold on the funds while they investigate and you aren’t on the hook for a penny.
If you must use a debit card don’t have more than you need in the account and do business with an institution that will not let an overdraft go through so if a thief does get your info they can’t charge more than you have in the account and still have things go through because it transfers over from your savings account, etc. If you use one or more credit cards wisely then you’ll get all the rewards, the interest rate won’t matter and you’ll never be on the hook for fraudulent charges.
If you must use a debit card don’t have more than you need in the account and do business with an institution that will not let an overdraft go through so if a thief does get your info they can’t charge more than you have in the account and still have things go through because it transfers over from your savings account, etc. If you use one or more credit cards wisely then you’ll get all the rewards, the interest rate won’t matter and you’ll never be on the hook for fraudulent charges.
Notice how no matter what is going on in the country, the banks margins won't change.
This has been my philosophy with credit since the beginning. The only addition I have to it is to always maintain a bank balance equal to a month's expenditures, or if your bank offers it, prevent overdraft by pulling from a tied savings account.
Don't overspend just to have shiny toys or indulge yourself if it puts you in a financially bad position, people.
The first job I had after graduating from college was as a student intern. There weren’t many jobs in my engineering field at the time (late 1980s). I was sleeping on the floor of a friend’s place but needed to be closer to my job so I borrowed money for a security deposit from my parents and rented an apartment. I had one credit card at the time. At the beginning of the next month I had money for food or rent but not both. We were only paid once a month and the check came from the other side of the country and since it was an out of state check the bank held the funds for two weeks. So for the first two weeks of the first month I ate pancakes for breakfast and dinner. No lunch. Nothing to wash down the pancakes or to top them. Just plain pancakes. It is self limiting because you can only eat a few pancakes with no toppings before they are so disgusting you can’t eat any more. The next month the food drought was a bit shorter and even shorter the month after that. After a few months I had enough money for food every day. I don’t think in the 1980s grocery stores accepted
Credit cards and restaurants were too expensive. It was hell going through that experience but it gave me an appreciation of what poverty is like.
Credit cards and restaurants were too expensive. It was hell going through that experience but it gave me an appreciation of what poverty is like.
I got dinged by credit karma and the credit reporting institutions for paying my card balances before a statement was generated. My score dropped from 832 to 830.
Someone should have told this to Americans 40 years ago
I think the use of the term "overdue" in the story is misleading, it sounds like the interest rate increases will apply to all unpaid balances that aren't subject to some sort of promotional financing. An "overdue" amount would mean that you had a minimum payment of $X last month and failed to make the payment.
Same here. It isn’t overdue, they’re carrying a balance.
850 is the highest possible, right? Impressive!
832 here. Never had a late payment, don't have too many inquiries. I guess it maybe is just a lack of a longer history (20 years) holding me back from a perfect score.
That's not how you should do it. Typically credit card balances are reported the same time each month for that specific card. Simply letting a statement cut and paying in full will satisfy the requirement to show usage. Don't carry a balance and pay interest when you do not have to.
Corporate propaganda. The Fed's "battle" with inflation has nothing to do with corporate interest rate gouging. There is no excuse for 23.49% interest rates.
Paying interest does absolutely nothing for your credit score. I have never paid a cent in interest (other than mortgage) and maintain a FICO above 800. Just run up balances and pay the new balance in full every month. You'll never pay interest and you'll always show a "balance" on credit reporting. The payment of interest is not in the equation.
Premium cards like this sock it to merchants in the form of payment processing fees. All that goes back into price hikes, especially for small businesses.To fight the inflation, Apple could just increase the Apple Cash rewards incentives.
On the other hand, more and more small places, restaurants etc are just offering a discount of ~5% for paying in cash. Beats the hell out of that Apple Cash 2%.