Apple has always been known for its sleek, innovative products and services, and the Apple Card is no exception. Launched in 2019, the Apple Card was introduced as a user-friendly, transparent, and secure credit card designed to work seamlessly with the iPhone. However, like any other product, the Apple Card comes with its own set of drawbacks. In this article, we’ll dive deep into the disadvantages of Apple Card and what you need to know before signing up.
1. Limited to iPhone Users
One of the most significant disadvantages of Apple Card is that it is exclusively available to iPhone users. To apply for and manage the card, you need to have an iPhone with iOS 12.4 or later. This means that if you own an Android device or any other smartphone, you won’t be able to get the Apple Card. By limiting its user base, Apple has excluded a large portion of potential customers who might have been interested in using the card.
2. No Sign-Up Bonus or Introductory Offers
Many credit cards on the market offer sign-up bonuses or introductory offers, such as 0% APR for a limited time, to attract new customers. However, the Apple Card doesn’t have any such perks. This lack of incentives can be a major disadvantage for those who are comparing the Apple Card to other credit cards with competitive offers.
3. Mediocre Rewards Program
The Apple Card’s rewards program, known as Daily Cash, is another area where it falls short compared to other credit cards. The Daily Cash program offers:
- 3% cashback on Apple purchases (including Apple products, services, and in-app purchases)
- 2% cashback when using Apple Pay for transactions
- 1% cashback on all other purchases made with the physical card
While this may seem like a decent rewards structure, it pales in comparison to many other credit cards that offer higher cashback rates and more versatile rewards programs. For instance, some credit cards offer up to 5% cashback in rotating categories, which can make them more valuable for users with diverse spending habits.
4. Limited Acceptance of Apple Pay
One of the main selling points of the Apple Card is the ability to earn 2% cashback on purchases made using Apple Pay. However, one of the disadvantages of Apple Card is that not all merchants accept Apple Pay. Although its acceptance is growing, it’s still not as widely accepted as traditional payment methods like Visa or Mastercard. This can limit the overall value of the 2% cashback feature, especially if you shop at stores where Apple Pay isn’t accepted.
5. No Traditional Card Number
The Apple Card is designed to be used primarily through Apple Pay, and as such, it doesn’t have a traditional card number printed on the physical card. While this adds an extra layer of security, it can also be inconvenient in certain situations. For instance, if you need to provide your card number over the phone or make an online purchase from a merchant that doesn’t accept Apple Pay, you’ll have to find the card number within the Wallet app on your iPhone. This can be time-consuming and cumbersome, especially for those who are used to the convenience of having a card number readily available on their physical cards.
6. No Balance Transfer or Cash Advance Options
Many credit cards offer balance transfer options, allowing users to transfer existing high-interest credit card debt to a new card with a lower interest rate. This can be a useful tool for consolidating debt and saving on interest payments. However, the Apple Card does not support balance transfers or cash advances, which is another significant disadvantage for those who are looking to manage their debt more effectively.
7. Limited International Use
While the Apple Card can technically be used anywhere that accepts Mastercard, one of the disadvantages of Apple Card is its limited utility for international travelers. Since the card’s rewards program is heavily dependent on Apple Pay, which isn’t as widely accepted in many countries, you might not be able to take full advantage of the card’s benefits while traveling abroad. Additionally, the Apple Card charges a 1% foreign transaction fee for purchases made outside the United States, which can quickly add up for frequent travelers.
8. No Authorized User or Joint Account Options
Unlike many other credit cards, the Apple Card does not allow users to add authorized users or open joint accounts. This limitation can be a major inconvenience for couples or families who want to share a credit card account for easier budgeting and expense tracking. As a result, the Apple Card may not be the best option for those who want to manage their finances collectively.
9. No Credit Card Perks or Protections
Many credit cards offer various perks and protections, such as travel insurance, purchase protection, extended warranty coverage, and more. Unfortunately, the Apple Card lacks these additional benefits, making it less appealing compared to other credit cards that provide such value-added features.
10. Privacy Concerns
While Apple touts the Apple Card as a secure and private credit card, some users may still have privacy concerns due to the integration with their iPhones. Since the card is linked to your Apple ID, it’s essential to be aware of the potential for data breaches or unauthorized access to your personal information. Although Apple has a strong track record when it comes to user privacy, it’s still important to consider this potential risk when choosing a credit card.
The Apple Card is a unique credit card that offers some innovative features and seamless integration with iPhones. However, the disadvantages of Apple Card discussed in this article make it clear that it might not be the best choice for everyone. Before deciding to apply for an Apple Card, it’s crucial to weigh the pros and cons, compare it with other credit cards on the market, and determine if it aligns with your specific financial needs and spending habits.
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