If you have the Apple Card*, you may see some changes soon. But don’t worry just yet, as they could be welcome ones.
After announcing last year it was cutting ties with Goldman Sachs, Apple may have found a new issuer in banking giant JPMorgan Chase.
Nothing is finalized yet — Apple Card and Chase are still in talks, according to the Wall Street Journal. But John Cabell, managing director of payments intelligence for JD Power, told CNET that he thinks the popular card could actually improve by moving to Chase.
“I certainly think that there’s an opportunity for the product to be revamped,” Cabell said. “It does not have the rewards and benefits of some of the most attractive card products out there. That’s not its strength, so there’s an opportunity to improve in a change like this.”
We’ll keep you updated with the latest news about the talks, but here’s what Apple Card users could expect.
What does this mean for Apple Card users?
Right now, nothing is changing for Apple Card users. However, if a deal is finalized, you should be notified about changes to your card.
A new card issuer could mean you’ll see changes to your rewards rate, interest rate, terms and benefits, and other features. It also means you’ll pay a new bank when your credit card bill comes due.
However, the things most people love about the Apple Card are unlikely to change, according to Cabell. The card would likely retain its most popular features, including its sleek and easy-to-use interface and how well it works within Apple’s ecosystem.
However, if you’re hoping for some relief from sky-high interest rates, don’t expect the card to offer any new introductory 0% APR opportunities should the deal go through, Cabell said. It’s rare to find a credit card that offers both balance transfer opportunities and rewards.
“Typically, balance transfer products are not as rich in rewards and benefits,” said Cabell, who added that Chase would likely choose to boost rewards and benefits so Apple Card could better compete with similar credit cards.
Should I start looking for a new credit card?
If you’re worried about your Apple Card changing, I’d advise you to wait it out until we know more. Since no deal has officially been announced, it’s too soon to tell whether you should jump ship or not.
If you’re unhappy with the Apple Card, however, I’d recommend looking at Wells Fargo Active Cash® Card and Blue Cash Everyday® Card from American Express which earn comparable rewards on tech purchases.
What should I do if I carry a balance on my Apple Card?
If you’re struggling with credit card debt, you should certainly do what you can now to pay it down without expecting a new card issuer to solve it for you.
“There’s no certainty of [this deal going through],” Cabell said. “If there’s a consumer with the Apple card now that has debt anxiety, they should go look for a solution on their own now, without expecting this deal to solve the issue or change anything substantial.”
The average interest rate on credit cards is over 20%, which can make it hard to dig out of debt as interest piles on each month. Using one of these practical plans for paying down credit card debt can help:
Use a debt repayment strategy. Creating a budget that gives you an idea of how much credit card debt you need to pay off is often the first step. The best budgeting apps can help you get started and incorporate a repayment strategy that works for you.
Consider a balance transfer credit card. These cards let you transfer the balance of the card you’re paying interest on to a card that has an introductory 0% balance transfer APR. This promotional period tends to last anywhere from 12 to 21 months, depending on the card. You’ll likely need to pay a balance transfer fee, but it’ll save you a substantial amount of money in the long run compared to the amount you’d have saved if you’d kept the balance on the Apple Card accruing interest.
Apply for a personal loan. If you need more time to pay down debt than a 0% balance transfer card can offer, consider applying for a personal loan. The best personal loans can offer lower interest rates and provide longer payoff periods. If you’re juggling multiple cards with balances, you can consolidate debt and make one monthly payment.
When will the Apple and Chase deal close?
The two companies are still reportedly in talks, which means we likely won’t know anything concrete for another few months. It’s also not guaranteed that Chase will take over the Apple Card.
Is Chase a good bank for credit cards?
Chase offers some of the best credit cards on the market for all kinds of people. It’s ranked fourth in JD Power’s annual credit card customer satisfaction survey, and its cards feature some truly great perks and rewards.
“Chase is about as versatile of an issuer as anybody out there. And [it has] experience in this co-branded space and making this work,” said Cabell, who pointed to Chase’s work with its Amazon partnership.
I have two Chase cards myself and haven’t had any issues with the bank (aside from a small hiccup with my personal information). My experience with Chase’s customer service has been fine, no better or worse than other issuers, but the right card issuer for you will come down to your individual preferences.
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*All information about the Apple Card has been collected independently by CNET and has not been reviewed by the issuer.
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Source: CNET
