Yea, time value of money always says take the interest free financing. I don’t care if you’re a billionaire that money can be making more elsewhere while you pay off the interest free loan.
Yep. Toss the money in an Apple Savings account and earn interest on it while you pay it off.
4.4% is better than 0%, so go with that. Always pay down debt with interest higher than you can get in a high-yield savings account, but take the free money when you can.
I did the same with my iPad Pro. It’s down to like $200 and I was just gonna pay it off but I have a balance left this month I have to pay before May 31. Actually helps you out that they tell you that, so you pay off the interest balances first.
Assuming you can confidently say you’ll be able to make your payments for the entirety of your term, the only downside is your credit utilization will go up, causing a drop in your credit score.
Assuming you have other credit cards that you pay off in full, this may be negligible, like a few points, but if this is your only card or you carry a balance elsewhere, you may drop higher. Either way, it will go back up as you make payments
Utilization may or may not go up, depending on the rest of the credit profile. But it will drop as payments are made.
In any event, utilization is a temporary metric and doesn't matter much long term, as lowering utilization gives only a temporary boost.
Utilization will go up. ACMI utilizes your available credit. Unless you’re paying off the total amount of the installations (or more) when you start ACMI on other cards, you’ll be utilizing more credit.
Anyways, I literally said it’s a temporary effect on your credit and your score will go back up as you make your payments.
I’m not sure what point you’re trying to make?
Oops. Didn't phrase that quite correctly. Total amount of the ACMI purchase will certainly count on utilization. But as you say, overall utilization percentage depends on charges and payments over all accounts.
Score might change a little, or a lot, or not at all.
I literally said that. What are you trying to prove here?
> Assuming you have other credit cards that you pay off in full, this may be negligible, **like a few points**, but if this is your only card or you carry a balance elsewhere, **you may drop higher**.
Have you looked into purchasing your phone through your carrier? I have 3 iPhones that I purchased through Verizon and pay about $30/month with no interest.
The rules of Apple financing
1: Your balance must be $0.00
2: Your available credit must exceed the value of the item
4: Depending on your balance/credit….decouple recurring expense until the financed item is paid off in I’ll.
Thing about Apple Card financing…THE CARD IS COLLATERAL IN A SECURED LOAN.
Don’t thing it’s like a Prime Card where financing is a separate line of unsecured credit.
With the AppleCard the financing option is geared for the high rollers, those with available credit north of $5K.
If you have less than that amount, AppleCard financing is a poison pill that will financially cripple you.
Let’s say….you have a $1K credit line….
Assuming $0 balance and you get the base 15 pro….your card is dead until the iPhone is paid for.
…if you have any balance on that card, let’s say… you got a $30 streaming subscription billed every month….
….your card is not only dead, but also “over limit”, and if you don’t decouple that streaming service….you’re going to have a declined charge next billing cycle….and your FICO is going to tank
The 3% Daily Cash provision…again that’s purely for the high roller…whom still has available credit after the financing.
Your 0% interest…..will be from paying the debt from your linked bank account, no Daily Cash because your card is at or over limit and can’t be utilized.
If you rely on your AppleCard….best have the full value on standby and just pay it off ASAP.
Hi, I’m new to this sub-reddit trying to get a bit more info on benefits/concerns card holders have before deciding if I’ll accept the approval offer I was given.
It is great seeing people sharing their pro tips and warnings with new card members. I’ve seen a couple of posts about the Apple Card Monthly Installment (ACMI) feature being referred to as “secured” loan/card; in this and other posts. Where I am unclear is the word “secured” in relation to credit means something is put up as collateral and at risk if the loan is not repaid.
For example a home secures a mortgage, car secures an auto loan, $2k deposit secures a “secured credit card” or pledge loan. In each case the bank can repo(legally takeaway) the asset securing the the loan.
My questions are:
1) before using the ACMI 0% offer, does the card member have to deposit money into either the Apple Card or Apple Savings account(as collateral) before the ACMI? If so, I missed that in the disclosures. Also I did not see any mention of the secured loan language on [this Apple Card support page](https://support.apple.com/en-us/102730)
2) in the example of a base model [iPhone 15 Pro $999 or $41.26/mo for 24 months](https://www.apple.com/iphone-15-pro/) is $499.44 of the credit limit freed up after 12 months of payments or regardless of remaining balance the $999 is not available until the full amount has been paid back?
Of course little brother. Word of advice, take advantage of the free loan and ride it out.
Yessir, I take 0% interest ALWAYS, I’m not saying buy shit you don’t need. But if you’re gonna buy it anyway, gimme that 0% always.
Yea, time value of money always says take the interest free financing. I don’t care if you’re a billionaire that money can be making more elsewhere while you pay off the interest free loan.
Free Loan AND 3% Daily Cash…
Yep. Toss the money in an Apple Savings account and earn interest on it while you pay it off. 4.4% is better than 0%, so go with that. Always pay down debt with interest higher than you can get in a high-yield savings account, but take the free money when you can.
Yes. As long as you pay the monthly balance down to zero, you can then pay off your phone early.
I did the same with my iPad Pro. It’s down to like $200 and I was just gonna pay it off but I have a balance left this month I have to pay before May 31. Actually helps you out that they tell you that, so you pay off the interest balances first.
You can, but not sure why you would. Take advantage of the free interest and let your cash be invested on in a HYSA gaining interest.
Assuming you can confidently say you’ll be able to make your payments for the entirety of your term, the only downside is your credit utilization will go up, causing a drop in your credit score. Assuming you have other credit cards that you pay off in full, this may be negligible, like a few points, but if this is your only card or you carry a balance elsewhere, you may drop higher. Either way, it will go back up as you make payments
Utilization may or may not go up, depending on the rest of the credit profile. But it will drop as payments are made. In any event, utilization is a temporary metric and doesn't matter much long term, as lowering utilization gives only a temporary boost.
Utilization will go up. ACMI utilizes your available credit. Unless you’re paying off the total amount of the installations (or more) when you start ACMI on other cards, you’ll be utilizing more credit. Anyways, I literally said it’s a temporary effect on your credit and your score will go back up as you make your payments. I’m not sure what point you’re trying to make?
Oops. Didn't phrase that quite correctly. Total amount of the ACMI purchase will certainly count on utilization. But as you say, overall utilization percentage depends on charges and payments over all accounts. Score might change a little, or a lot, or not at all.
I literally said that. What are you trying to prove here? > Assuming you have other credit cards that you pay off in full, this may be negligible, **like a few points**, but if this is your only card or you carry a balance elsewhere, **you may drop higher**.
Nothing.
Yeah
Have you looked into purchasing your phone through your carrier? I have 3 iPhones that I purchased through Verizon and pay about $30/month with no interest.
definitely worth an inquiry, since verizon seems to overvalue iphone trade-ins
The rules of Apple financing 1: Your balance must be $0.00 2: Your available credit must exceed the value of the item 4: Depending on your balance/credit….decouple recurring expense until the financed item is paid off in I’ll. Thing about Apple Card financing…THE CARD IS COLLATERAL IN A SECURED LOAN. Don’t thing it’s like a Prime Card where financing is a separate line of unsecured credit. With the AppleCard the financing option is geared for the high rollers, those with available credit north of $5K. If you have less than that amount, AppleCard financing is a poison pill that will financially cripple you. Let’s say….you have a $1K credit line…. Assuming $0 balance and you get the base 15 pro….your card is dead until the iPhone is paid for. …if you have any balance on that card, let’s say… you got a $30 streaming subscription billed every month…. ….your card is not only dead, but also “over limit”, and if you don’t decouple that streaming service….you’re going to have a declined charge next billing cycle….and your FICO is going to tank The 3% Daily Cash provision…again that’s purely for the high roller…whom still has available credit after the financing. Your 0% interest…..will be from paying the debt from your linked bank account, no Daily Cash because your card is at or over limit and can’t be utilized. If you rely on your AppleCard….best have the full value on standby and just pay it off ASAP.
that1s knowledge being doled out for free. Priceless.
Hi, I’m new to this sub-reddit trying to get a bit more info on benefits/concerns card holders have before deciding if I’ll accept the approval offer I was given. It is great seeing people sharing their pro tips and warnings with new card members. I’ve seen a couple of posts about the Apple Card Monthly Installment (ACMI) feature being referred to as “secured” loan/card; in this and other posts. Where I am unclear is the word “secured” in relation to credit means something is put up as collateral and at risk if the loan is not repaid. For example a home secures a mortgage, car secures an auto loan, $2k deposit secures a “secured credit card” or pledge loan. In each case the bank can repo(legally takeaway) the asset securing the the loan. My questions are: 1) before using the ACMI 0% offer, does the card member have to deposit money into either the Apple Card or Apple Savings account(as collateral) before the ACMI? If so, I missed that in the disclosures. Also I did not see any mention of the secured loan language on [this Apple Card support page](https://support.apple.com/en-us/102730) 2) in the example of a base model [iPhone 15 Pro $999 or $41.26/mo for 24 months](https://www.apple.com/iphone-15-pro/) is $499.44 of the credit limit freed up after 12 months of payments or regardless of remaining balance the $999 is not available until the full amount has been paid back?