Understanding Interest Charges on the Apple Card- What You Need to Know

Does the Apple Card Charge Interest?

The Apple Card, introduced by Apple Inc. in 2019, has quickly gained popularity for its sleek design, user-friendly interface, and innovative features. One of the most frequently asked questions about this digital credit card is whether it charges interest on purchases. In this article, we will delve into this topic and provide you with a comprehensive understanding of the interest rates associated with the Apple Card.

Interest Rates on the Apple Card

Yes, the Apple Card does charge interest on purchases. However, it is important to note that the interest rates are variable and can vary depending on several factors. The interest rate on the Apple Card is determined by the Prime Rate, which is the rate that banks charge their most creditworthy customers. As of now, the interest rate on the Apple Card ranges from 12.99% to 23.99% variable, depending on your creditworthiness.

How Interest is Calculated

Interest on the Apple Card is calculated on a daily basis and is charged to your account on the last day of each billing cycle. This means that if you carry a balance from one month to the next, you will be charged interest on that balance for the entire billing cycle. The interest rate will be applied to the average daily balance of your account, and the interest will be rounded up to the nearest cent.

Introductory Offers and Interest-Free Periods

To attract new customers, the Apple Card offers an introductory period during which you can avoid paying interest on purchases. For the first 12 months, new cardholders can enjoy interest-free financing on purchases. However, it is important to pay off the full balance before the end of the introductory period to avoid any interest charges.

Benefits of the Apple Card

Despite the interest charges, the Apple Card offers several benefits that make it an attractive option for many consumers. Some of these benefits include:

1. No annual fee
2. No late fees
3. 3% cash back on purchases made with Apple services
4. 2% cash back on purchases made at gas stations and restaurants
5. 1% cash back on all other purchases

Conclusion

In conclusion, the Apple Card does charge interest on purchases, but it offers a competitive interest rate and an introductory interest-free period to new cardholders. By understanding the interest rates and taking advantage of the card’s benefits, you can make informed decisions about managing your finances and maximizing your rewards.