Apple Card users can buy products through interest-free installments that are paid on a monthly basis, but there are a few things they should know.
Apple Card Monthly Installments are one of the biggest perks of Apple’s credit card — but how do they work? Though there has been speculation about Apple starting monthly installment plans that are available to all users, they’re currently limited to Apple Card users. The Apple Card was released in 2019 as a credit card centered around Apple Pay and backed by Goldman Sachs. The Apple Card falls short in a few key areas when compared with other reward credit cards, but the company’s Daily Cash program and three percent cashback at Apple is a plus for some users.
Beyond these traditional credit card perks, Apple Card users can buy select products from the Apple Store with monthly installments. Apple Card Monthly Installments appear as a payment method anytime a buyer starts to check out in the Apple Store app or in the company’s online store. The service is also available at physical retail stores. It only applies to cardholders, though, so buyers need to either currently own the Apple Card or apply for one. Since the Apple Card application process is completely online and does not include a human review stage, interested users can apply and receive a response in just a few minutes.
Pay Taxes Upfront, Then Installments Each Month
The length of each installment plan varies by device, not necessarily by total cost. iPhones and Apple Watches can be purchased with Apple Card Monthly Installments over a 24-month period, similar to the typical installment plans provided by cellular carriers. Macs and iPads can be paid over 12 months, while AirPods and Apple TV can be split over six months. Some other products, like displays and accessories, can also be purchased with Apple Card Monthly Installments.
At the original time of purchase, buyers will only be paying the taxes that may apply for the item — no down payment is required. Each installment, which is the sticker price split perfectly over the installment period, is added to the user’s Apple Card balance on the last day of the month. This is important to note, especially when budgeting. Users that have Apple Card Monthly Installments should expect for their monthly balance to increase right as the month closes.
Apple Card Monthly Installments are interest-free, so there’s little benefit to paying the balance off early. However, the remaining balance of the installment plan does shave off the card’s total credit limit. So, if an iPhone costs $999 and an Apple Card user has a limit of $1,500, their available credit would drop to $501 after starting an installment plan. For this reason, paying off an installment plan early can reduce a user’s total credit usage — but they’ll still be expected to pay their next installment on-time.
Apple doesn’t let users pay off their installment plan early unless they’ve paid their Apple Card balance first. That’s because the Apple Card’s balance can accrue interest charges, but the Apple Card Monthly Installments can’t. As such, users planning to make extra payments should do so right after they’ve paid off their credit card. For users trying to buy Apple products and pay over time, Apple Card Monthly Installments are a solid option.
Source: Apple
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