Should You Get the Apple Card? What to Know Before You Bite

It's not a game-changer, but it does offer some intriguing features. Here's how to know if it's right for you.
Sara Rathner
By Sara Rathner 
Edited by Kenley Young
Apple iPhone user holding her phone

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When Apple announced in 2019 that it was launching a new Apple-branded credit card, some fans may have hoped it would reinvent how we pay for things. But the product's features make it the credit card equivalent of a Red Delicious: relatively ubiquitous and somewhat bland.

Still, despite a crowded market of cash-back cards, consumers may be able to find room in their digital wallets for another one that will earn rewards, especially on pricey Apple purchases.

As with all Apple product announcements (and, really, all credit cards), the important question to ask is: Is this product right for you? Here's what to know about the Apple Card.

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The Apple Card is issued by Goldman Sachs and is different from the credit card formerly known as the Barclaycard Visa with Apple Rewards, which stopped accepting applications in late 2020.

Why you might want the Apple Card

The $0-annual-fee Apple Card earns 3% cash back on Apple purchases, as well as at select merchants and through select apps, and 2% back on everything else — but only if you make your purchases via Apple Pay on your iPhone. If you use the physical version of the card, which is an option at retailers that don’t accept Apple Pay, you’ll earn only 1% cash back.

It's unclear what kind of credit scores you'll need to qualify for the Apple Card, but assuming you are creditworthy, you might benefit from this card. Here's how.

1. Apple juice runs through your veins

Siri is your spirit guide. Every device in your home, car and office comes from the Apple store (which, coincidentally, is where you hang out on weekends). Getting 3% cash back on your numerous Apple purchases would be a big boon, and for all other purchases, you're already well accustomed to waving your phone over the point-of-sale device at checkout. Here's a quick look at the current Apple Card rewards categories:



3% cash back

• Apple Pay purchases made directly with Apple (including Apple stores, within the App Store and for Apple services).

Ace Hardware purchases via Apple Pay. This includes purchases in the Ace Hardware app, on and at participating stores nationwide.

Exxon and Mobil gas station purchases via Apple Pay. This includes fuel, car washes and convenience store purchases.

Nike purchases via Apple Pay (in U.S. stores, on and on Nike apps).

Panera purchases via Apple Pay.

• In-store T-Mobile purchases via Apple Pay.

Uber and Uber Eats purchases via Apple Pay.

Walgreens and Duane Reade purchases via Apple Pay.

2% cash back

All other purchases made via Apple Pay.

1% cash back

All purchases made with the physical Apple Card.

2. You crave instant gratification

Apple says you can apply for the card through the Wallet app on your iPhone in minutes, and you can begin using it the moment you're approved. No need to wait seven to 10 business days to get a card in the mail. Similarly, when it comes to earning and redeeming your cash back, rewards are credited daily and can be used more or less immediately. Unlike many other rewards cards, you don't need to wait until your billing cycle closes.

3. You live in, or travel to, cities with widespread Apple Pay acceptance

Apple claimed in announcing the Apple Card that 85% of U.S. retailers accept Apple Pay. It's also worth noting that the Apple Card has no foreign transaction fees, and Mastercards are widely accepted around the world, so in general it will make a decent travel buddy.

4. You're occasionally forgetful

Apple says you won't be charged a penalty rate or a late fee should you miss a payment. The company does, however, note that "late or missed payments will result in additional interest accumulating toward the customer’s balance." Regardless, NerdWallet recommends making payments in full and on time because late payments can still hurt your credit scores.

5. You want to share your account with family

At first, the Apple Card didn't allow authorized users. However, Apple Card Family launched in April 2021, giving you the ability to share one card account with up to five other people. You can designate a co-owner, who is equally responsible for paying the bills, and authorized users (called "participants"). Account activity is reported to all three major credit bureaus for co-owners, as well as for participants who are 18 or older and opt in to credit reporting. Each member of an Apple Card Family group earns Daily Cash through their purchases and gets to keep the cash back they earn. This is unlike many other authorized user arrangements, where earned rewards go to the primary cardholder.

6. You want access to Apple’s high-yield savings account

With an Apple Card, you can deposit your cash-back rewards into an Apple high-yield savings account that’s available only for Apple Card customers. The savings account earns a strong interest rate and has no monthly fee or minimum balance requirement. Along with your rewards cash, you can also link an external account or use your Apple Cash balance to make additional deposits — which earn the same high rate — and make withdrawals.

Why you might pass on the Apple Card

The 2% cash back on most purchases matches many of the highest flat-rate cash-back cards on the market. But it comes with a big asterisk, because you must use Apple Pay to get elevated rates. The physical card earns just 1% back on purchases, and that's just not competitive when the industry standard is at least 1.5%.

Here are some reasons the card may not make sense for you:

1. You're an Android user

To use Apple Pay, you must have an iPhone model that can support it. If you're committed to a different mobile wallet, such as Samsung Pay or Google Pay, consider instead the Citi Double Cash® Card. It pays 2% cash back on all purchases: 1% when you buy and 1% when you pay — and you can add it to the digital wallet of your choice.

2. You want travel rewards

Dreaming of a big sign-up bonus that can net you a free flight? The Apple Card doesn't offer that. A travel rewards card can, though. The $0-annual-fee Bank of America® Travel Rewards credit card, for example, earns 1.5 points per dollar on all purchases, not to mention a plum of a sign-up bonus. If you’re willing to pay the $95 annual fee, the Chase Sapphire Preferred® Card earns bonus rewards in a variety of popular spending categories, including travel and dining. There's a great sign-up bonus, too. Points are worth more when redeemed for travel through the Chase portal, and you can also transfer your points to multiple airline and hotel rewards programs.

3. You shop primarily at stores that don't accept Apple Pay

Some major retailers, including Walmart, don’t accept Apple Pay. This is to say nothing of the much smaller merchants where you may run into issues: Food trucks, mom-and-pop stores, bodegas and others simply may not be equipped to handle Apple Pay.

4. You spend heavily in specific everyday categories

You may pony up for a new MacBook Pro once every few years, but if your everyday spending is focused primarily on a specific area, other cash-back cards may make more sense. Maybe you have a large family and do the bulk of your spending on groceries and gas. The Blue Cash Preferred® Card from American Express earns 6% cash back at U.S. supermarkets, on up to $6,000 a year in spending (then 1%); 6% cash back on select U.S. streaming subscriptions; 3% cash back at U.S. gas stations and on transit (including such things as taxis, rideshares, parking, tolls, trains and buses); and 1% cash back on all other purchases. Terms apply (see rates and fees). Or perhaps you hit the town regularly? The Capital One SavorOne Cash Rewards Credit Card earns 3% cash back on dining, grocery stores and entertainment, including streaming services, and 1% elsewhere.

Read through Nerdwallet's full list of best rewards credit cards for more options.

5. You’d like to finance a large purchase outside of the Apple brand

While the card does feature interest-free financing options for multiple Apple-branded devices and accessories, there’s no introductory APR offer on other kinds of purchases. The ongoing APR is 15.99%-26.99%, Variable (as of June 2023).

This is not an ideal card if you need to carry a balance. A card with a lengthy 0% intro APR offer on all purchases would be a better option.

What's next?

To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.

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