Ideal for Apple fans who want to save on tech purchases

Apple is one of the largest companies in the world. From television to tablets, its products are everywhere, so it’s no surprise that Apple created its own credit card, too.

Apple launched the Apple Card in 2019 in partnership with Goldman Sachs. On Jan. 8, JPMorgan Chase reached a deal with Goldman to take over the credit-card program and become the new issuer.

Like you might expect, the Apple Card is ideal for Apple devotees who use Apple products and want to save on their tech spending. But this no-annual-fee cash-back credit card has a lot to offer for your regular spending, too — especially if you use Apple Pay to make cardless purchases.

There aren’t many added perks with this cash-back credit card.

One unique offering is the option to have your rewards deposited directly into a high-yield savings account. If you’re working to build up your emergency fund or simply want to put your rewards in a place where you can grow them even more, this can be a good option.

If you do have a large purchase to make with Apple — whether you’re upgrading to the new iPhone or want to invest in a new MacBook — you can save when you choose Apple Card Monthly Installments at checkout. You’ll have the option to pay for your purchase with no interest over a given amount of time; the monthly payment is added to your monthly Apple Card minimum payment. Plus, you’ll still earn your 3% cash back at checkout.

To earn the best rewards with your Apple Card, you’ll want to primarily stick with Apple Pay. Using Apple Pay for purchases can earn you a 2% cash back rate anywhere and up to 3% with select merchants.

Right now, those merchants include:

Ace Hardware (online, mobile app, or in participating stores)

Duane Reade (stores in New York and New Jersey)

Exxon and Mobil gas stations (includes fuel, convenience store, and car wash spending)

Nike (U.S. stores, online, or mobile app)

Panera Bread (U.S. stores, online, or mobile app)

T-Mobile (shop in U.S. stores or pay your monthly bill online and in the mobile app)

Uber (online or mobile app)

Uber Eats (online or mobile app)

Walgreens (U.S. stores, online, or mobile app)

The 3% cash back on Apple purchases is also a relatively flexible category. It covers spending at the Apple Store in-person or online, iTunes, Apple Music, and App Store purchases (including in-app purchases).

Your Apple Card rewards are issued as daily cash back, and you can redeem your rewards in the following ways:

Savings account deposit: You can set up a savings account and deposit your Daily Cash to the account and earn interest to grow your money.

Transfer to Apple Cash: Send your Daily Cash to Apple Cash to use for purchases you make through Apple Pay or to apply to some or all of your outstanding Apple Card balance.

Related:

Apple Card can make a great choice for anyone who prefers to checkout using Apple Pay and wants to earn simple cash-back rewards.

If you’re able to make the majority of your purchases with Apple Pay — you choose Apple Pay when shopping online, your local grocery store accepts Apple Pay, you can use contactless payments when you fill up at the gas pump, etc. — this card could be a great option. With minimum 2% cash back on Apple Pay spending (plus more with select merchants), it’s in line with some of today’s top-earning flat cash-back cards.

However, its lack of benefits and bonus reward categories could make Apple Card less appealing for some. If you already have a cash-back credit card for your top spending categories, you may not get as much value. And if you prefer earning travel rewards that you can cash in for a future vacation or want access to annual credits and benefits, you could be missing out on some potential returns.

Make sure you compare your goals and spending habits with any new card before you apply. While Apple Card can be a great choice for those who value streamlined, easy-to-use rewards (and shop with Apple often), it could hold some cardholders back from getting the max value for their spending.

Cash-back rewards: Up to 3% cash back on select purchases can help you maximize everyday spending — and if you shop with retailers who accept contactless payments via Apple Pay, you can earn at least 2% back every time you shop.

No annual fee: Apple Card has no annual fee. You also won’t pay any foreign transaction fees, penalty fees, or other fees that some cards may charge.

Simplicity: With Daily Cash rewards deposited right into your account when you earn them, earning and using rewards with this card is simple. There’s no need to strategize your spending or learn the ins and outs of a rewards program; simply use your card to make eligible purchases and then save on future spending with the rewards you earn.

Dig deeper: How to use a cash-back card to save money on everyday expenses

No promotional APR: While some cards offer introductory APR promotions — such as 0% APR for 18 months on new purchases — the Apple Card does not. The regular APR applies to all purchases.

No physical cards for authorized users: The Apple Card is a titanium card rather than plastic. However, not everyone will get one; you must request a physical card and authorized users aren’t eligible for a physical card.

High potential APR: While it is in line with other rewards credit cards today, the Apple Card has a variable APR range that can quickly lead to high interest charges on any balances you carry.

Limited benefits: Other cards (including some cash-back cards) have more robust benefits, such as travel insurance, annual credits, discounts with partners, and more.

The Apple Card is part of the Mastercard network, one of the largest networks in the world. It can be used at most retail locations in the U.S. and internationally.

Just remember that using your physical Apple Card won’t get you the boosted rewards rate on your spending (just 1% cash back). For 2%-3% cash back, you’ll need to use Apple Pay, which may not be accepted as readily as Mastercard credit cards alone.

According to Apple, Apple Pay is accepted at 85% of merchants in the U.S.; look for the Apple Pay logo at checkout, or for a contactless payment at the terminal. If the retailer accepts contactless card payments, you should be able to use Apple Pay, too.

To have an Apple Card, you must have an Apple iCloud account. You can make payments through the Apple mobile app or over the phone:

Phone: 877-255-5923

Mobile app: To make a payment, open the Wallet app on your iPhone. Tap the Apple Card and tap “pay.” Choose a payment amount and follow the instructions to submit the payment.

Customer support is available 24 hours a day, seven days a week. You can reach customer service through the following methods:

Here are a few more of our picks for great rewards cards that can offer a lot of value back on your spending.

Why we like it: The Savor card from Capital One is another no annual fee cash-back card with a number of rewards categories that can easily fit your regular spending. Cash-back rewards include 3% back on dining, entertainment, popular streaming services, and grocery stores (not including Target or Walmart) and 1% on all other purchases. You can also earn a boosted 8% back on Capital One Entertainment spending and 5% back on hotels and rental cars via Capital One Travel.

Read our full review of the Capital One Savor Cash Rewards Credit Card

Why we like it: American Express offers a solid no annual fee cash-back option, too, with the Blue Cash Everyday (see rates & fees). Along with a generous welcome bonus, you can earn 3% cash back at U.S. supermarkets, on U.S. online retail purchases, and at U.S. gas stations (each up to $6,000 spent each year, then 1%) and 1% on everything else. (Terms apply; cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.)

This card also offers a generous introductory APR on new purchases and balance transfers. And you’ll get a few added benefits, including $7 in statement credits back each month you spend at least $9.99 on the Disney Bundle (with subscription subject to auto-renewal; enrollment required), and $15 back each month when you pay for an auto-renewing Home Chef subscription with your card (enrollment required).

Read our full review of the Blue Cash Everyday Card from American Express

Why we like it: If you’re open to earning points instead of cash back, the Chase Sapphire Preferred can be an incredibly valuable option for travel rewards. This card has a $95 annual fee and a generous welcome bonus, along with a 25% boost when you redeem points for travel through Chase.

Each year, you’ll get a $50 hotel credit for stays you book through Chase Travel. Ongoing rewards include 5x points on travel through Chase Travel (not including purchases that qualify for the hotel credit), 3x on dining, 3x on select streaming services, 3x on online grocery spending (not including wholesale clubs, Target, or Walmart), 2x points on all other travel, and 1x on everything else. In addition to the hotel credit, you’ll get a points boost on your account anniversary worth 10% of your overall purchases from the past year.

Read our full review of the Chase Sapphire Preferred Card

You can build credit with the Apple Card (just like any other credit card) by practicing good credit habits. Goldman Sachs, the card’s issuing bank, will report your account information to the three credit bureaus — Equifax, Experian, and TransUnion — every month.

To build good credit, make sure to always make your payments on time and keep an eye on your credit utilization. As you build a positive payment history, you can increase your credit score over time.

Apple Card currently has a variable APR between 19.24% and 29.49%, in line with other cash-back credit cards today. Your specific account APR will depend on your creditworthiness and details in your card application.

Apple Card works a lot like any other rewards credit card. As you charge purchases to your card, you’ll earn rewards. If you pay your balances in full by the time your monthly bill is due, you won’t take on any interest. If you’re only able to make the minimum payment by your due date, you’ll accrue interest at your assigned APR.

Apple Card’s rewards may look a bit different from other credit cards, though. You’ll earn your cash back in the form of Daily Cash when you make a purchase. Then, you’ll have the option to have it deposited directly into your savings account or into your Apple Cash account (where you can spend it, use it to make card payments, or send peer-to-peer payments).

You’ll get a metal credit card when you’re approved for the Apple Card, which you can use like a standard card to make purchases. But you’ll get the most out of your card if you’re comfortable using it with Apple Pay. When you’re ready to check out in-person or online, look for a contactless card reader or the Apple Pay logo. Paying through Apple Pay with your Apple Card will allow you to earn a minimum 2% cash back on every purchase (up to 3% with select merchants).

This article was edited by Rebecca McCracken

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to the author(s) and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.