We once ran the workforce through test applications, and found that contractors with higher pay and no debt were less likely to get an approval.
Several years ago I paid off my car and student loans early within a month of each other which caused my credit rating to drop from well into the Excellent range with an 800+ score to around 740–750 range which only Good. Within a couple months I had gone back up to Excellent, but I would've been hurt had I tried to secure a great interest rate during that time.
Mine dropped from 845 to 805 when I paid off my student loan. Unfortunately it stayed there.
I'm considering obtaining a loan for an airplane purchase. Because aircraft last so long and retain their value fairly well a 20 year loan under 6% APR is common for this type of transportation equipment. I'd do it because my investments have a better average return than that interest rate; hell, my dividends are over 3% and would pay for this investment right now. I would hope that my credit rating would increase with a record of on-time payments over the next couple decades.
The fact that Apple Card keeps users updated on their spending may help them manage their finances better and pose overall a lower risk. But we'll see.
We once ran the workforce through test applications, and found that contractors with higher pay and no debt were less likely to get an approval.
Several years ago I paid off my car and student loans early within a month of each other which caused my credit rating to drop from well into the Excellent range with an 800+ score to around 740–750 range which only Good. Within a couple months I had gone back up to Excellent, but I would've been hurt had I tried to secure a great interest rate during that time.
Yes, that’s what happens when you close credit accounts. Seems absolutely stupid from a customer point of view. But lending agencies prefer potential customers with lots of available credit at their disposal.
At least it only took a few months for your score to recover.
I presume they’re not taking people with bankruptcy on their credit history...
If only it wasn’t Goldman Sachs... or Wells Fargo... or... etc.
Sigh.
Credit card companies extend credit to the users and part of that is accepting some risk that the funds won't be repaid. There are many reasons for bankruptcy, but ultimately it means the consumer got into a situation where they could not cover their obligations and legitimately affects your credit score.
If you have bad credit, the best thing you can do is be responsible with your spending and build it up again. It takes time, and you won't be getting great offers, especially early on, but things will improve.
Judging by what was posted in the other thread, they are being pretty picky - people with credit scores over 800 were getting a very mediocre rate of 18%. I'm curious about what someone with a score of 650 would get.
They get denied, like me.
The Apple Card has some nice perks, but it's not the end-all, be-all of credit cards. If you have other credit cards, I wouldn't sweat it - keep them current and your credit will improve. Since one of the components of your credit score is the ratio of utilized credit to available credit, if you have high balances on your cards it can adversely affect your score as well.
If you are unable to get any cards at all, you may need to look at a secured card as a means to build your credit.
These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
Hey do you say the same to the entire construction and commercial development industry, which is based entirely on credit? Huge swaths of corporate America is run on credit, not cash. They do the exact same thing people do. And guess what happens when they fail or file bankruptcy? Creditors lose out. But you know what happens to the actual people running those corporations? The executives? Nothing. Absolutely nothing.
In reality it is normal citizens, non-corporate people, who suffer in lending. Corporations aren't people and as such do not experience suffering. Irresponsible executives continue to become personally wealthy.
This is the nature of the rigged economy. Corporations don't suffer failure the way small fry do.
It's a little bit different taking out a loan to build a house or skyscraper vs. a loan to go on a vacation or pay for dinners out. One is way more secured and lower risk than the other. Don't take out loans and you'll never have any issues about not being able to pay. Studies have shown 100% of bankruptcies are on those with loans.
I haven’t gotten a notification yet. I’m curious what rate I’ll get if I’m approved. My credit score is 805.
Please do post all followup when you get your offer.
I received a piddly $9,000 limit at 17.99% with a credit score of 802, a very mediocre offering from Goldman Sachs. They are probably too busy offering subprime credit lines. I'm what the credit industry calls a deadbeat.
The interest rate is irrelevant to me since I pay off all my cards every month. I have three cards that are around 19% interest rate. The lowest rate is 11.24% on the card from my credit union naturally.
My Apple Card's $9,000 limit is the lowest of all my cards. I have several with $25,000 limits and one card with a $40,000 limit.
Anyhow, it is doubtful that I will use the Apple Card much seeing as it does not export data to personal finance aggregators like Quicken, Mint.com, Banktivity and even Goldman Sachs' own Clarity Money service.
I need a comprehensive view of my personal finances and Apple Card is in its own stupid walled garden.
The part the analysts are missing is: The mere fact the person has an iPhone and cell plan (assuming that they do), automatically means that they have some financial means. So, when they give them a very low credit line, their risks are minimized.
To equate this to the subprime mortgages -- where people with rotten credit and little or no income were given huge mortgages - is a false equivalency.
Well, a $200 iPhone 7 and $35/mo plan from Cricket doesn't mean they are all that financially capable.
Apple really has no business getting into this business, they are a tech company, not a financial company. What's next, the Apple Payday Lender Service?
I presume they’re not taking people with bankruptcy on their credit history...
If only it wasn’t Goldman Sachs... or Wells Fargo... or... etc.
Sigh.
Credit card companies extend credit to the users and part of that is accepting some risk that the funds won't be repaid. There are many reasons for bankruptcy, but ultimately it means the consumer got into a situation where they could not cover their obligations and legitimately affects your credit score.
If you have bad credit, the best thing you can do is be responsible with your spending and build it up again. It takes time, and you won't be getting great offers, especially early on, but things will improve.
Judging by what was posted in the other thread, they are being pretty picky - people with credit scores over 800 were getting a very mediocre rate of 18%. I'm curious about what someone with a score of 650 would get.
They get denied, like me.
The Apple Card has some nice perks, but it's not the end-all, be-all of credit cards. If you have other credit cards, I wouldn't sweat it - keep them current and your credit will improve. Since one of the components of your credit score is the ratio of utilized credit to available credit, if you have high balances on your cards it can adversely affect your score as well.
If you are unable to get any cards at all, you may need to look at a secured card as a means to build your credit.
It really has no meaningful perks. It is pretty ho-hum.
Apple really has no business getting into this business, they are a tech company, not a financial company. What's next, the Apple Payday Lender Service?
What are you talking about? Apple has had Apple branded credit cards off and on since the Eighties. The previous iteration was with Barclaycard.
This time it is with Goldman Sachs Bank USA Inc., Salt Lake City Branch. They are the issuing bank, not Apple. When you buy a chocolate donut and cup of coffee at Krispy Kreme, you don't owe Apple the $4. You owe Goldman Sachs. They are the creditor.
It really has no meaningful perks. It is pretty ho-hum.
One of the primary features of the Apple Card is enhanced security. If you don't value that, that's fine, but it is meaningful to some others. However you cannot speak on behalf of every single American consumer.
Oh, and $35/mo. at Cricket is expensive for a prepaid plan. I'm paying $16/mo. to Mint Mobile. Sure I can afford a pricey postpaid plan but I get adequate reception and performance in my usual places with this MVNO. Why should I dump more money into a dumb pipe? For my own usage case, 52.7 cents per day is enough to pay for cellular service.
Apple really has no business getting into this business, they are a tech company, not a financial company. What's next, the Apple Payday Lender Service?
What are you talking about? Apple has had Apple branded credit cards off and on since the Eighties. The previous iteration was with Barclaycard.
This time it is with Goldman Sachs Bank USA Inc., Salt Lake City Branch. They are the issuing bank, not Apple. When you buy a chocolate donut and cup of coffee at Krispy Kreme, you don't owe Apple the $4. You owe Goldman Sachs. They are the creditor.
One of the primary features of the Apple Card is enhanced security. If you don't value that, that's fine, but it is meaningful to some others. You cannot speak on behalf of every single American consumer.
Oh, and $35/mo. at Cricket is expensive for a prepaid plan. I'm paying $16/mo. to Mint Mobile. Sure I can afford a pricey postpaid plan but I get adequate reception and performance in my usual places with this MVNO. Why should I dump more money into a dumb pipe?
I'm familiar with how credit cards work. Yes, Apple used to allow their logo to be slapped on someone else's credit card (I had the citibank one in the 90's) but this is different. Apple put tons of resources and marketing into it and it is known as the "Apple credit card" not the Goldman Sachs Visa with Apple rewards.
All credit cards have very high security and you're never responsible for any fraud anyway, this is commonplace. I use my card all the time and never had any fraud happen.
Mint, Cricket, whatever, the service was not my point. I can get 4 lines (for my family) with unlimited LTE for $100/mo at Cricket. Mint charges the same but you have to prepay for a year and only get 12 GB/mo.
It all makes sense now why this card is such an abysmally mediocre offering. There is a reason why high end credit cards (e.g, Chase Reserve) only approve those with solid credit.
No annual fee, 2% cash back on all AP NFC transactions. 3% on Apple stuff. That isn't abysmal.
Normal consumers have multiple cards for different use cases. I'm failing to understand what your problem is with this use case.
We once ran the workforce through test applications, and found that contractors with higher pay and no debt were less likely to get an approval.
Several years ago I paid off my car and student loans early within a month of each other which caused my credit rating to drop from well into the Excellent range with an 800+ score to around 740–750 range which only Good. Within a couple months I had gone back up to Excellent, but I would've been hurt had I tried to secure a great interest rate during that time.
Mine dropped from 845 to 805 when I paid off my student loan. Unfortunately it stayed there.
I'm considering obtaining a loan for an airplane purchase. Because aircraft last so long and retain their value fairly well a 20 year loan under 6% APR is common for this type of transportation equipment. I'd do it because my investments have a better average return than that interest rate; hell, my dividends are over 3% and would pay for this investment right now. I would hope that my credit rating would increase with a record of on-time payments over the next couple decades.
What type of aircraft are you considering if you don't mind me asking?
My daughter got an invitation yesterday. But she was denied. Her credit score is >800. I suspect she was denied because her current income is only $25K. I am still waiting for an invite. I’m checking daily to see if I can apply without an invite like others report. With my income and high credit score I should be quickly approved. I’ve removed my credit freeze temporarily in anticipation of applying.
Credit history plays a really big part in getting credit. A good and long credit history shows your ability to repay debt and any known bumps along the road that a persons credit history may have.
It all makes sense now why this card is such an abysmally mediocre offering. There is a reason why high end credit cards (e.g, Chase Reserve) only approve those with solid credit.
No annual fee, 2% cash back on all AP NFC transactions. 3% on Apple stuff. That isn't abysmal.
Normal consumers have multiple cards for different use cases. I'm failing to understand what your problem is with this use case.
The citibank double cash back gives 2% on all purchases (AP NFC or not). The extra 1% on apple stuff is not that compelling unless maybe you're running a video shop and buying a lot of high end mac pros.
I'm familiar with how credit cards work. Yes, Apple used to allow their logo to be slapped on someone else's credit card (I had the citibank one in the 90's) but this is different. Apple put tons of resources and marketing into it and it is known as the "Apple credit card" not the Goldman Sachs Visa with Apple rewards.
So they are putting extra effort into it to make it a more successful partnership. That's fine and while it might be new for Apple, it certainly isn't knew to the consumer credit card industry. United Airlines bombards my snail mail USPS mailbox with offers for their United Explorer card.
All credit cards have very high security and you're never responsible for any fraud anyway, this is commonplace. I use my card all the time and never had any fraud happen.
Yes, however some people will look at the absence of a printed card number on the physical titanium Apple Card as better security because some server at a restaurant can't just scribble down your card details during the few minutes they are processing your transaction at the POS terminal.
And even if one isn't liable for any fraud, one can certainly be inconvenienced by it.
I've had one instance of suspicious activity in the past three years. I immediately reported it to the card issuer and they sent out a card with a new number, but it still takes time to call, explain what happened. Sure I have other cards I can use in the interim but talking to a credit card customer service representative isn't exactly how I really want to be spending my time. Perhaps you are different.
Mint, Cricket, whatever, the service was not my point. I can get 4 lines (for my family) with unlimited LTE for $100/mo at Cricket. Mint charges the same but you have to prepay for a year and only get 12 GB/mo.
Again, a good example why you shouldn't be speaking on behalf of everyone. Your situation is different than mine and I don't have a family. I don't need unlimited LTE. I just need about 1.5 GB per month. If I can find a cheaper plan that still fits my needs, your plan is meaningless to me.
The part the analysts are missing is: The mere fact the person has an iPhone and cell plan (assuming that they do), automatically means that they have some financial means. So, when they give them a very low credit line, their risks are minimized.
To equate this to the subprime mortgages -- where people with rotten credit and little or no income were given huge mortgages - is a false equivalency.
Well, a $200 iPhone 7 and $35/mo plan from Cricket doesn't mean they are all that financially capable.
My former son-in-law, his son, and his mother would be prime examples of barely getting by iPhone owners. One is retired with no assets other than SS, another is on SS disability as his only income, and the other just doesn't particularly like to work. Yet all three managed to get the very latest iPhone X two years ago from their cell provider (Verizon). Stupid financial decisions, but they just had to go for flashy-thing-to-make-an-impression over keeping the electricity on that has been cut-off at least two times since that I know of.
Just because someone has an iPhone is not evidence of creditworthiness or good decision-making.
Comments
Yes, that’s what happens when you close credit accounts. Seems absolutely stupid from a customer point of view. But lending agencies prefer potential customers with lots of available credit at their disposal.
At least it only took a few months for your score to recover.
If you are unable to get any cards at all, you may need to look at a secured card as a means to build your credit.
I received a piddly $9,000 limit at 17.99% with a credit score of 802, a very mediocre offering from Goldman Sachs. They are probably too busy offering subprime credit lines. I'm what the credit industry calls a deadbeat.
The interest rate is irrelevant to me since I pay off all my cards every month. I have three cards that are around 19% interest rate. The lowest rate is 11.24% on the card from my credit union naturally.
My Apple Card's $9,000 limit is the lowest of all my cards. I have several with $25,000 limits and one card with a $40,000 limit.
Anyhow, it is doubtful that I will use the Apple Card much seeing as it does not export data to personal finance aggregators like Quicken, Mint.com, Banktivity and even Goldman Sachs' own Clarity Money service.
I need a comprehensive view of my personal finances and Apple Card is in its own stupid walled garden.
This time it is with Goldman Sachs Bank USA Inc., Salt Lake City Branch. They are the issuing bank, not Apple. When you buy a chocolate donut and cup of coffee at Krispy Kreme, you don't owe Apple the $4. You owe Goldman Sachs. They are the creditor.
One of the primary features of the Apple Card is enhanced security. If you don't value that, that's fine, but it is meaningful to some others. However you cannot speak on behalf of every single American consumer.
Oh, and $35/mo. at Cricket is expensive for a prepaid plan. I'm paying $16/mo. to Mint Mobile. Sure I can afford a pricey postpaid plan but I get adequate reception and performance in my usual places with this MVNO. Why should I dump more money into a dumb pipe? For my own usage case, 52.7 cents per day is enough to pay for cellular service.
All credit cards have very high security and you're never responsible for any fraud anyway, this is commonplace. I use my card all the time and never had any fraud happen.
Mint, Cricket, whatever, the service was not my point. I can get 4 lines (for my family) with unlimited LTE for $100/mo at Cricket. Mint charges the same but you have to prepay for a year and only get 12 GB/mo.
No annual fee, 2% cash back on all AP NFC transactions. 3% on Apple stuff. That isn't abysmal.
Normal consumers have multiple cards for different use cases. I'm failing to understand what your problem is with this use case.
that a persons credit history may have.
I've had one instance of suspicious activity in the past three years. I immediately reported it to the card issuer and they sent out a card with a new number, but it still takes time to call, explain what happened. Sure I have other cards I can use in the interim but talking to a credit card customer service representative isn't exactly how I really want to be spending my time. Perhaps you are different.
Again, a good example why you shouldn't be speaking on behalf of everyone. Your situation is different than mine and I don't have a family. I don't need unlimited LTE. I just need about 1.5 GB per month. If I can find a cheaper plan that still fits my needs, your plan is meaningless to me.
Just because someone has an iPhone is not evidence of creditworthiness or good decision-making.