Apple explains Apple Card application process, offers suggestions for those who were decli...

Posted:
in General Discussion edited August 14
Apple continues to release more information about Apple Card in the run-up to a full-fledged launch and on Wednesday detailed why some applications are denied, offering suggestions as to how prospective customers might improve their chances at acceptance.




Outlined in a Support Pages document, Apple runs through the process Apple Card partner Goldman Sachs uses when evaluating a new application. Currently, Apple Card is open to a limited number of customers as part of a "preview" program, and while previous reports suggest acceptance is fairly broad, some applicants in relatively good standing have seen their application denied.

According to Apple, the card issuer applies a customer's credit score, credit report and yearly income as a general guideline to determine eligibility. There are, however, other factors to consider.

As noted in a section titled "Conditions that might cause your application to be denied," Goldman Sachs "might not be able to approve" an Apple Card application if a customer is behind, or has previously been behind, on debt obligations. This includes having a checking account closed by a bank or carrying two or more "non-medical debt obligations" (mortgages, auto loans, personal loans, utility bills and the like) that are past due.

Negative public records like bankruptcy or property repossession can color an application. Carrying heavy debt is also seen as a negative. For example, customers who lack disposable income after paying off obligations, have obligations that eat up some 50% or more of monthly income or maxed out credit lines and opened a "significant" number of new accounts might be declined.

Users who frequently apply for credit cards or loans, or those who have a low credit score may not be approved.

In a section that provides suggestions for users who were denied access to the Apple Card Preview, Apple says potential customers should ensure all information on a submitted application is accurate and a clear picture of a state-issued photo ID is provided if one was requested. On the latter, an applicant's last name must match that of the submitted ID.

Beyond application accuracy and ensuring a user's credit report does not contain errors, Apple offers little held as to how a negative decision might be changed. The company largely defers to the conditions for denial listed above.

For those accepted into the program, Apple says the card's initial credit limit is calculated using income and minimum payment amounts associated with existing debt. Goldman Sachs also takes credit history into account, as well as certain factors that were assessed during the application evaluation stage.

Customers who request a limit increase will likely need to use Apple Card for six months or more before Goldman Sachs can make such a determination, the document says.

Apple began sending out invitations to its preview program in early August after an internal trial involving Apple and Goldman Sachs employees. In addition to users who signed up to be notified of Apple Card's release, some random iPhone owners are finding the option to apply appear in the Wallet app.
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Comments

  • Reply 1 of 20
    Rayz2016Rayz2016 Posts: 4,716member
    So basically, they’re denying the Apple Card to folk who shouldn’t have another credit card. 

    applesnorangesdjkfishernetroxbeowulfschmidtrazorpit
  • Reply 2 of 20
    I have concerns about that photo ID requirement. Who holds onto that image and the associated information?
  • Reply 3 of 20
    I have concerns about that photo ID requirement. Who holds onto that image and the associated information?
    Simple solution: those with such concerns shouldn’t apply. 

    The unfortunate fact is, not everyone should have a credit card. It’s not a right. 
    repressthisdjkfisherJFC_PASpamSandwichzroger73
  • Reply 4 of 20
    MplsPMplsP Posts: 1,547member
    Rayz2016 said:
    So basically, they’re denying the Apple Card to folk who shouldn’t have another credit card. 

    Yup. Pretty much. I saw a post in another thread from someone with a credit score in the mid 600’s that got denied and was angry about it, but that’s really a pretty mediocre to poor credit score, so I’m not surprised. 

    Edit: For those who have low credit scores and are denied, I would also say not to worry about it. It's a cool looking card, but it's not really that much better than a lot of other cards out there, and if your credit score is low, it's probably better to keep the cards you have and focus on improving your credit history and score.
    edited August 14 djkfisherJFC_PA
  • Reply 5 of 20
    seankillseankill Posts: 481member
    Other than 3% back on Apple purchases, what’s so special about this card? I’m not buying that it’s anything special. 
    baconstangchemengin1razorpitzroger73
  • Reply 6 of 20
    I’d like to see AppleInsider analyze the benefits of using an Apple Credit Card to purchase new Apple equipment. I usually make those purchases using my Amex card which effectively doubles the length of the AppleCare warranty. I then pay off the balance soon after. Unless I’m missing something that alone surpasses the 3% “cash back.”
    razorpit
  • Reply 7 of 20
    Denied?  Long walk....short pier.
  • Reply 8 of 20
    Rayz2016Rayz2016 Posts: 4,716member
    seankill said:
    Other than 3% back on Apple purchases, what’s so special about this card? I’m not buying that it’s anything special. 
    Then don’t get one. 

    You could’ve reached the same conclusion if only you’d applied yourself. 

    edited August 15
  • Reply 9 of 20
    GeorgeBMacGeorgeBMac Posts: 4,946member
    I have concerns about that photo ID requirement. Who holds onto that image and the associated information?
    Simple solution: those with such concerns shouldn’t apply. 

    The unfortunate fact is, not everyone should have a credit card. It’s not a right. 
    Assuming (which isn't much of an assumption) that any non-Apple entity can, and eventually will be hacked, then sharing your personal ID information such as:  Picture, birth date, driver's license number, etc....  should be a concern for every honest person.
    edited August 15 firelock
  • Reply 10 of 20
    MplsPMplsP Posts: 1,547member
    I have concerns about that photo ID requirement. Who holds onto that image and the associated information?
    Simple solution: those with such concerns shouldn’t apply. 

    The unfortunate fact is, not everyone should have a credit card. It’s not a right. 
    Assuming (which isn't much of an assumption) that any non-Apple entity can, and eventually will be hacked, then sharing your personal ID information such as:  Picture, birth date, driver's license number, etc....  should be a concern for every honest person.
    Ultimately, the more cards, services, etc you apply for and have, they more places there are that store your information and the more sites to potentially get hacked, whether they are Apple or not.

    I listened to a talk given by a cyber security expert for my investment company and one of the first things she said was that in the financial industry, no one brags about their security because they all know they are vulnerable in some manner; it’s just a race to find and patch the vulnerabilities before the Chinese/Russian/North Korean hackers do.
    edited August 15 razorpit
  • Reply 11 of 20
    zimmiezimmie Posts: 272member
    I’d like to see AppleInsider analyze the benefits of using an Apple Credit Card to purchase new Apple equipment. I usually make those purchases using my Amex card which effectively doubles the length of the AppleCare warranty. I then pay off the balance soon after. Unless I’m missing something that alone surpasses the 3% “cash back.”
    American Express adds up to two years to manufacturer warranties of five years or less (for warranties under two years, they just double the existing warranty). Not quite doubling AppleCare, but close, yes. For equipment, sure, this probably isn't as good as AmEx warranty extension. Also isn't as big a discount as you can get through Adorama, B&H, &c. Taken together, you can get ~10% off and a significant warranty extension.

    You also get 3% cash back on services (like iCloud storage upgrades) and software/media purchases, though. The biggest discount I've been able to find on those is a 2%-back-on-everything card like the Fidelity Visa. This isn't a huge deal, but an extra 1% off with no additional fees is something. Whether that is worth a hard credit inquiry or not is up to you.
  • Reply 12 of 20
    I just applied and got an immediate non-acceptance. None of the above apply to me. Credit score of 830. No late payments on anything for years.  Good salary. Haven’t applied for a new CC in years. Long credit history. 

    I guess I’ll call and see what they say.  Wish me luck. If you’re in the same boat, it’s not just you. 
    firelock
  • Reply 13 of 20
    Here the passive voice rejection letter btw (missing a comma):

    Thanks for your interest in Apple Card. Goldman Sachs Bank USA has received your application and it was unable to be approved.

    If you still want to apply for the Apple Card please re-attempt your application.

    If you'd like to learn more about this decision, please contact Goldman Sachs Bank USA by chat or phone or by mail at the address below within 60 days.
    edited August 15
  • Reply 14 of 20
    Here was the reply I got:

    Thank you for that information. We are aware of an issue affecting applying for Apple Card. Please try applying again later. I apologize for the inconvenience.

    Ah, so it might be a technical glitch?

    At this time I don't have the information about what is going on with the applications. However, we have been made aware and are working to fis the issue.

    I guess why one does limited rollouts.

  • Reply 15 of 20
    Here the passive voice rejection letter btw (missing a comma):

    Thanks for your interest in Apple Card. Goldman Sachs Bank USA has received your application and it was unable to be approved.

    If you still want to apply for the Apple Card please re-attempt your application.

    If you'd like to learn more about this decision, please contact Goldman Sachs Bank USA by chat or phone or by mail at the address below within 60 days.
    It’s possible you already have too many credit cards? Also possible you were part of the Equifax hack?
  • Reply 16 of 20
    I was invited to apply and got a quick rejection. I have a high credit score and have never been late on any payments. Apple/Goldman cited a Trans Union report and supposedly high credit card balances. In fact, I am using about 4% of available credit. I called Trans Union and they said no credit report was requested or run for this card or any other lender recently. In retrospect it is just as well. Apple Card transactions live in your phone and cannot be integrated with QuickBooks or other financial software. You cannot have an authorized user such as a spouse or partner. No extended warranty, purchase protection, or car rental insurance. There was no phone number or address on the rejection email to discuss further.  
  • Reply 17 of 20
    Here the passive voice rejection letter btw (missing a comma):

    Thanks for your interest in Apple Card. Goldman Sachs Bank USA has received your application and it was unable to be approved.

    If you still want to apply for the Apple Card please re-attempt your application.

    If you'd like to learn more about this decision, please contact Goldman Sachs Bank USA by chat or phone or by mail at the address below within 60 days.
    It’s possible you already have too many credit cards? Also possible you were part of the Equifax hack?
    I tried again a few hours later and was approved with a $20,000 limit and 12.99% rate. Something was off with their system earlier today. 
    GeorgeBMac
  • Reply 18 of 20
    I was invited to apply and got a quick rejection. I have a high credit score and have never been late on any payments. Apple/Goldman cited a Trans Union report and supposedly high credit card balances. In fact, I am using about 4% of available credit. I called Trans Union and they said no credit report was requested or run for this card or any other lender recently. In retrospect it is just as well. Apple Card transactions live in your phone and cannot be integrated with QuickBooks or other financial software. You cannot have an authorized user such as a spouse or partner. No extended warranty, purchase protection, or car rental insurance. There was no phone number or address on the rejection email to discuss further.  
    It is a soft inquiry until you hit “accept” whatever they offer you. Since they didn’t approve the card a hard inquiry/report was never “requested”



  • Reply 19 of 20
    I don't have too many credit cards and no evidence that I was part of Equifax hack. I have a credit card monitoring service that looks at all three credit bureaus. The reason I was given in the rejection was high credit card balances, even though all three credit reports show very low credit card balances. I did have high balances for a short period of time, never late and paid everything off with proceeds from an investment. Not sure what a soft credit report is, but maybe it is from old data.
    GeorgeBMac
  • Reply 20 of 20
    Anyone figure out how to add an Apple Card to Apple Pay on in MacOS?  The only options I see for adding a card are taking a photo or typing in the number.  I couldn't find anything about this on Apple.com.  I've asked this question on the Apple Support forums, but I'm impatient :smile: 
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