Apple may have become known for first-class technology, but the company's new Apple Card credit card is made available to a large cross-section of borrowers, including people who may not qualify for other larger cards. Users who are invited to the preview card program early are accepted even with weak credit scores, albeit generally with relatively high interest rates and low credit limits.
Comments from early users on Reddit and Twitter have confirmed rumors that predated the release of the card: Instead of limiting the Apple card to the richest customers, Apple and partner Goldman Sachs are throwing a wide net to expand the service's customer base. Although users with credit scores of the 700s are surprisingly accepted on site, there are also many users in the low to mid-600s ̵
As part of the application process, users are asked to provide some basic personal information to enable a quick decision and confirm credit check through TransUnion, especially including the current income level. Combined with known debt obligations, income levels appear to be a key factor in determining whether Goldman immediately approves or rejects the user's application.
Users who have received email rejections often report that they were told that "monthly debt obligations are too high given your income," while some others have received non-specific in-app discounts that simply say that Goldman Sachs "is not able to approve your application at this time. "In addition, at least one user who repeatedly applied for the original denial was successful in receiving the most basic terms: a $ 250 credit limit and $ 23.99%, not enough to buy an iPhone.
As CNBC notes, Apple's interest in offering credit to a large number of customers dates back to the late 1990s, when then-CEO Steve Jobs hoped to issue a Capital One-backed card – preferably without rejecting any Apple customers, but at the time, the company focused almost exclusively on computers, and expensive on it, as this preceded the release of the $ 99 iPod shuffles and $ 299 iPad mini tablet so m brought a large number of more budget-conscious customers to the table.
It remains to be seen whether Goldman's broad willingness to lend will ultimately help or damage the company's bottom lines. But history suggests that they will be perfectly fine, especially if they limit the credit they give to risky borrowers to relatively small amounts. Applicants with better credit scores and higher income levels receive just under 13%, with thousands of dollars in credit limits, potentially enough to buy Apple's expensive upcoming Mac Pro computer and optional Pro Display XDR display.