Apple Card Review: Extra Rewarding for Apple Fans

Higher cash-back rates for Apple Pay purchases

The Apple Card earns a respectable 2% back on purchases made through Apple Pay, and 3% back at participating merchants through Apple Pay.

Here's a quick look at the Apple Card's rewards categories:

Get preapproved without affecting your credit score

You can see whether you qualify for the Apple Card — and what terms you qualify for, like credit limit and interest rate — without a hard credit pull. If you’re happy with the offer, you can accept it and continue with your card application. At that point, you will be subject to a hard pull, which can temporarily affect your credit scores.

» MORE: Credit cards that offer preapproval without a hard pull

Instant access to rewards

Cash-back rewards, called Daily Cash, are credited daily as the name implies. Daily Cash can be used more or less immediately. Unlike many other rewards cards, you don't need to wait until your billing cycle closes.

You can choose a few ways to redeem your Daily Cash. The default is a statement credit toward your Apple Card balance. You can also opt to spend your rewards by sending them to Apple Cash in your Wallet app. From there, you can pay your Apple Card bill, shop with Apple Pay or send money to someone else. If you’d prefer to stash away your Daily Cash, you can set up an interest-earning Apple Savings account, which is provided by Goldman Sachs, and park your rewards there.

» MORE: Apple Daily Cash: What it is and how it works

Ability to share card account

With Apple Card Family, you 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.

Pay for Apple purchases over time

When you use your Apple Card in Apple stores, on the Apple website or in the Apple Store app, you can choose to pay over time with Apple Card Monthly Installments. This is an interest-free payment plan, and you’ll still earn 3% Daily Cash back on the total purchase upfront. The monthly installment is added to the minimum payment due on your card. Note, however, that these payment plans are not automatically applied to your Apple purchases; you must actively choose to use them.

No late fees

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 hurt your credit scores.

MORE NERDY PERSPECTIVES

Lower cash-back rate with physical 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. 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.

That leaves the physical card as your only option. As nicely designed as it is, it earns only 1% back on purchases. That's just not competitive when the industry standard is at least 1.5%.

Limited 3% Daily Cash categories

You may pony up for a new MacBook Pro once every few years, but if your everyday spending doesn’t happen at one of the participating merchants that earn 3% Daily Cash, other cash-back cards may make more sense. Maybe the bulk of your spending is on groceries and gas, but you don’t frequent Exxon stations. 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 Savor 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 credit cards for more options.

Few upfront incentives

Unlike many other cash-back credit cards, the Apple Card doesn't offer a rich sign-up bonus worth hundreds of dollars. Occasionally, the card will feature modest welcome offers, but they're infrequent and unpredictable. Compare that to what you'd get with a competitor like the Wells Fargo Active Cash® Card. It earns 2% back on every purchase, everywhere, no Apple Pay necessary — and it comes with a sign-up bonus: Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.

Also, while the card does feature interest-free financing options for multiple Apple-branded devices and accessories, there’s no 0% introductory APR offer on other kinds of purchases. The ongoing APR is 18.24%-28.49%, Variable. 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.