Apple credit card review (2024)

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Loyal Apple consumers may wonder if the Apple Card lives up to the hype and whether the no-fee card is truly the best choice for Apple purchases.

Below, CNBC Select breaks down all you need to know about the Apple Card — from the cash-back program to fees, payments, fine print, privacy and security.

The card is similar to the design of many Apple devices — simple and efficient. The Apple card benefits are pretty straightforward, but perfect for someone who wants a simple cash-back card experience. The card comes with:

• 3% Daily Cash back on purchases at Apple and select merchants when you use Apple Pay
• Digital budgeting tools in Apple Wallet app
• Access to Apple Card Monthly Installments for Apply purchases
• Joint co-ownership to build credit with a partner or spouse
• Ability to connect directly to a high-yield savings account
• 24/7 call and text support

Apple refers to cash back as "Daily Cash," and cardholders can earn it at a rate of 3% cash back on goods or services purchased directly from Apple (including Apple retail stores, the Apple online store, the App Store, iTunes, Apple Music and other Apple-owned properties) and these select merchants:

• Uber and UberEats
• Panera Bread
• Walgreens (in-store, on the app or website)
• Ace Hardware
• T-Mobile
• Nike
• Exxon and Mobil stations
• Duane Reade

All other purchases will earn 2% cash back on Apple Pay purchases and 1% cash back on all other purchases.

If you regularly make purchases at Apple, it may seem like a no-brainer to use the Apple card — but you may find other cards with higher rewards.

For example, the U.S. Bank Cash+® Visa Signature® Card offers 5% cash back in two categories of your choosing, on up to $2,000 in combined purchases a quarter. According to a U.S. Bank spokesperson, the card's "electronics stores" category includes Apple Store in-store and online purchases while the "TV, internet and streaming services" category includes most purchases made through the App Store, Apple Music and iTunes.

Daily Cash can be used in a number of ways: applied as a statement credit to your Apple Card balance, spent like cash through Apple Pay, transferred to a bank account or sent to friends via iMessage. Unlike some rewards cards, the value of Daily Cash is the same, no matter how you redeem it.

If you don't have an active Apple Cash card, your cashback accrues in your Apple Card account, and you can manually redeem it through the Wallet app.

You can also set up a Savings account through Apple. This will allow your Daily Cash to be deposited into a high-yield savings account that earns 4.40% APY. You can deposit additional funds from an external bank account or your Apple Cash balance.

The Apple Card has no fees whatsoever. There are no annual fees, foreign transaction fees or late payment fees.

The current variable APR is 19.24% to 29.49% based on your creditworthiness, which is in line with other popular cashback cards on the market.

Through using this card users also gain access to Apple Card Monthly Installments. This method will allow users to pay for new Apple products via monthly interest-free installments, and the payments will automatically be added to the minimum payment due on their Apple Card.

The Citi Double Cash® Card is a solid cash-back card for consumers who want ease of use and high rewards. As you spend on the card, you will earn: 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24. And if you have lingering credit card debt, the card offers a valuable 0% intro APR on balance transfers for 18 months (19.24% - 29.24% variable afterwards). There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

While you can earn up to 3% cash back on Apple products and select merchants when you use the Apple card, it's likely the overwhelming majority of your purchases will be outside of those categories.

But regardless of your card preference, be sure to run the numbers based on your spending habits to see which card will make the most sense.

The Blue Cash Preferred® Card from American Express is another great cash-back credit card, with tiered rewards for different purchases. As you spend on the card, you will earn:

• 6% cash back for every dollar spent at U.S. supermarkets on up to $6,000 per year in purchases (then 1%),
• 6% cash back for every dollar spent on select U.S. streaming subscriptions
• 3% cash back for every dollar spent at U.S. gas stations, transit including taxis/rideshare, parking, tolls, trains, buses and more
• 1% cash back for every dollar spent on all other purchases.

The card comes with a solid $250 welcome offer after you spend $3,000 in eligible purchases on your new Card within the first 6 months of Card Membership. You will receive the $250 back in the form of a statement credit.

This card may net you higher rewards than the Apple Card as you can earn significant savings on both your streaming subscriptions and groceries.

The Apple credit card provides users with Daily Cash back and rewards of up to 3%, but users who are looking for diverse perks like lounge access or sign up bonuses might consider looking at some other options.

Pros

• Daily Cash back: Apple card users can not only earn up to 3% Daily Cash back at participating stores when using Apple Pay, but they also get access to those rewards the same day. Users also earn 2% when using Apple Pay and 1% when paying with the physical card.
• No Fees: Many rewards credit cards come with annual fees or foreign transaction fees, but the Apple card is rid of them all.
• Access to Apple Card Monthly Installments: This payment plan allows users to pay for Apple products in interest-free installments.
• Can deposit Daily Cash into a Savings account: You can set up your Daily Cash to be deposited into a high-yield savings account to grow for future spending.

Cons

• Lower rewards when using the physical card: If you aren't using Apple Pay for your purchases, you're likely only earning 1% cash back and probably could be getting more competitive rewards.
• No special financing or welcome bonuses: The Apple card doesn't offer balance transfer or cash advance options or a welcome bonus for new customers.
• Apple Pay isn't accepted everywhere: According to Apple's site, Apple Pay is accepted at over 85% of retailers in the U.S., but that does leave a chunk where you won't be able to use a staple feature of this card.

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The Apple Card is a great choice if you're a loyal fan of the brand and own an iPhone, are looking for a card that seamlessly integrates with the Wallet app and don't mind sacrificing some credit card rewards earning potential. It could also be beneficial to someone who regularly makes purchases with Apple or the select merchants listed above.

Additionally, this card is a good fit for someone who plans on making a large purchase through Apple and wants interest-free payments on their purchase.

However, if you don't have an iPhone or want a card with an introductory 0% APR period on non-Apple purchases, you might consider alternative rewards credit cards or balance transfer cards. You may also want to consider other cards if you're looking for more premium perks like airport lounge access or built-in travel insurance.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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Information about the Apple Card has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the cards prior to publication.

For rates and fees of the Blue Cash Preferred® Card from American Express, click here.