Five questions to ask yourself before you apply for an Apple Card

Any day now, the Apple Card will be available to tens of millions of U.S. consumers. And it’s definitely getting plenty of hype.

With that slick white titanium card, the purchase tracking, the security features… it’s easy to understand why you might want it.

But it’s ultimately still a MasterCard credit card backed by a big multinational bank, and before you apply for it, you should really ask yourself these five questions.

Can you always pay it off?

Do you intend to fully pay off your Apple Card every month, or will you run a balance?

The Apple Card interest rate is between 12.99 and 23.99 percent, and that’s low for a cash back card, but it’s not at all low compared to other cards that don’t have rewards. The Apple Card interest rate can easily be 5  to 10 percent higher than a card you might get with no rewards. 


Apple Card has features to help see how much interest you’ll accrue based on how much you pay. But at these rates, any interest more than wipes out that cash back.

Just like any other cash-back rewards card, you should not use the Apple Card if you can’t pay off every purchase within a month. Once you start paying interest, you wipe out the entire cash back amount and then some.

Should you really open up a new line of credit?

Consumers these days have more credit from more sources than they used to, and credit scoring agencies have adapted to that. Opening up a new line of credit won’t necessarily kill your FICO score, and they don’t really punish you for multiple credit inquiries for home, auto, or student loans.

But getting several new credit cards within a short time can cause your credit rating to suffer. And if your credit rating isn’t very good to begin with, getting more credit is never really the answer.