How the Apple Card will assist in managing your finances

Posted:
in General Discussion
Whenever you open your Wallet app to buy something with Apple Card, you get a huge amount of detail about all your spending -- plus controls for managing it. As much as the increased security, this is why you should get Apple Card.




Buying items with your Apple Card is only half of the story. As soon as you've purchased anything, Apple Card provides very impressive features about managing your spending. From precise details of every item -- down to a map of where you bought it -- through helping you analyze your spending and on to managing your balance, Apple Card will change your finances.

Apple is not offering balance transfers into Apple Card, at least not at launch, so when you get yours, its balance is going to be zero. As soon as you buy anything -- via your iPhone, Apple Watch, online or with the titanium Apple Card -- then two things happen.

One is that you are notified of the purchase. If it looks like it might not be you who made it, then you'll get an alert about unusual activity. Otherwise, the charge gets listed in your latest transactions in Apple Card section of your Wallet app.

You can then tap on any of those recent transactions to see more details about it, including a map of where you were. That's not a lot of use if you're on a binge buying items online from your living room couch, but for when you're out and don't have time to get receipts, it's a boon.

The other thing that happens is that, of course, your card is charged the purchase amount and is now carrying a balance.

Money changes everything

Let us be clear to the point of being strident about it. Your best option is always, always going to be that you pay off your credit card completely. Whether it's an Apple Card or anything else, clearing the entire amount each month has forever been the right way to use a credit card.

When you go to buy anything with Apple Card on iPhone, you see this page summarizing your finances
When you go to buy anything with Apple Card on iPhone, you see this page summarizing your finances


You don't even have to wait for the end of the month, either. All credit cards let you pay at any time, but Apple's makes it remarkably convenient. At any time, you can open the Wallet app, tap on your Apple Card and see a Pay button.

Tap on that and you'll see a screen headed Choose Amount. Immediately under that heading you'll see a note about when your next bill is due. It will say that quite plainly, too, with a sentence such as "Make payments by May 31."

All Apple Card users will be due to pay their balance at the end of the month. Unlike other cards where your due date depends on when you signed up, all Apple Card bills are always due on the last day of the month. It might've been good to have some more flexibility, to be able to make sure you're due after your paycheck arrives, but at least you'll never forget the date.

In the middle of the screen, there's a circular slider. At the top inside the circle, you see your total balance. And on the bottom inside that circle, you see exactly how much interest you are currently going to be paying. That, too, is plain. You're shown an actual dollar value, not just some percentage figure.

The circle around both of these is a slider. You can swipe around it to set how much money you intend to pay off the card now. There is an option for a keypad if you prefer to type in the amount, though Apple has not yet demonstrated that.

Swipe around the circle to raise or decrease how much you're going to pay and see the interest charges that will cause
Swipe around the circle to raise or decrease how much you're going to pay and see the interest charges that will cause


As you swipe around the circle, you are increasing or decreasing the amount you're going to pay. As you do this, that amount is shown in the centre of the circle -- and the amount of interest you owe will rise or fall to match.

Apple says that this amount is "calculated in real time" as you swipe around the circle. However, the interest is actually charged at the end of the month so as accurate as the app may be at the time you use it, it's still an estimate. Just as you will increase that amount if you suddenly buy a large ticket item, so you can potentially reduce the interest fee by paying early or more often.

Most credit cards have a minimum amount you have to pay. When you open this Choose Amount screen, it does not start you off at paying nothing. The central number will be some figure, some proportion of your balance, and the circle around it will be partially filled in to match.

It then rapidly moves around to represent the amount you have to pay in order to owe no interest. This isn't necessarily your full balance, but it will be close to it.

So this is effectively Apple Card showing you a minimum and an optimum payment. Strictly speaking, though, Apple Card doesn't have a minimum payment because Apple says they will not charge you late fees. Yet even without being slapped with an extra charge for being late, you are worse off if you skip a payment because you're going to be paying interest for longer.

So swipe the circle around as far as you can manage, as far as you can afford, and then tap the Pay Now button. There is also a Pay Later which will take you to a screen where you can set up regular payments on a schedule.

You'll be able to set up regular, automatic payments to reduce your Apple Card balance
You'll be able to set up regular, automatic payments to reduce your Apple Card balance

Monitoring your income

Face it, more money is going to be going out of your accounts than into it, but there is Daily Cash. Depending on how you use Apple Card, where you use it and what you buy, you will get back between one and three percent of the price of your purchase.

Typically, you will get this amount of money paid into your Apple Cash Card daily. This is a second, separate account that you may already be familiar with if you've already used the existing Apple Pay facility to send or receive money from people.

Daily Cash will appear on your Apple Cash Card
Daily Cash will appear on your Apple Cash Card


In regular use, Apple will pay you this Daily Cash amount into the Apple Cash Card. You'll be able to see each transaction you've made and how much cash you've got back from it. From there, you can spend the money direct from this card or use it to pay off your Apple Card balance.

You can see your Daily Cash amount in the Apple Cash Card part of your Wallet, but also on the main screen of Apple Card in there, too. Whenever you go to buy something, you are shown many details about your account, including the Daily Cash amount.

Monitoring your expenses

You're going to spend a greater amount of time in seeing where your spending is going. Or rather, you should. If you prefer to put your head in the sand and not stay on top of your finances, as unfortunately so very many of us do, then nothing Apple offers will change that.

Yet no other card has quite the same level of helpful detail. There are cards that come with apps, but none that are integrated quite so deeply into iOS or offering quite such clear information.

Right on the front screen of Apple Card in your Wallet, you get information. There's the number of days before your next payment is due, for instance, and there's also a list of your recent transactions. There's your current balance and also the amount of money available to you to spend.

However, there is also one-button access to some statistical information about your spending. By default, this is shown as a button labelled Weekly Activity.

A colour-coded bar chart gives you a quick overview of your spending
A colour-coded bar chart gives you a quick overview of your spending


Tap this and you go into a display that shows you the various sums you've spent this week. It shows up as a color-coded bar chart and you can swipe to see your spending in previous weeks. Tap the Monthly button and you can do the same over the current and previous months.

The colors used are neither random nor editable. Apple has picked certain categories of spending such as food and drinks, entertainment and so on. It's assigned a color to each.

Then the bar showing each day's spending is a blend of these colors. It's not precise enough on its own to show you that, say, you spend exactly three quarters of your money on food and drink, but it will give you an overall impression.

You can then scroll down from the bar chart to see a Monthly section. This lists Shopping, Food and Drinks, and so on, plus the number of transactions in that category and the precise amount spent.

Very nicely, you can tap the Show Merchants button, or tap on a category, to see just what you've bought in these categories and what companies you bought from.

No doubt

If you qualify for an Apple Card, it is features like these that can make it compelling.

Apple Card gives us the ability to immediately see what we've been spending money on, plus how much should pay back now, and then how much Daily Cash we've earned.

It's a lot of information and it's better-designed, better-presented than any other card we know.



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Comments

  • Reply 1 of 51
    fumifumi Posts: 15member
    Appleinsider, you need to stop banging the drum for this. Only a few days ago you wrote another puff piece about this thing. It's a credit card. Nothing more. Don't be bought into the phoney hype surrounding it. This card will not assist you in your finances, its purpose is to destroy your finances. I really wish Apple fans would see this for what it is. 

    The richest company in the world think they're not making enough money so they introduce a card to make more money. 

    That's why Credit Cards exist. That's the only reason they exist. To make money.
    edited April 4 designrchemengin
  • Reply 2 of 51
    Mike WuertheleMike Wuerthele Posts: 4,641administrator
    fumi said:
    Appleinsider, you need to stop banging the drum for this. Only a few days ago you wrote another puff piece about this thing. It's a credit card. Nothing more. Don't be bought into the phoney hype surrounding it. This card will not assist you in your finances, its purpose is to destroy your finances. I really wish Apple fans would see this for what it is. 

    The richest company in the world think they're not making enough money so they introduce a card to make more money. 

    That's why Credit Cards exist. That's the only reason they exist. To make money.
    We have constant, constant requests for more information on how it works. Thus, the multiple pieces about it.
    mwhitemacguiJWSCmatrix077n2itivguylostkiwiwatto_cobra
  • Reply 3 of 51
    SoliSoli Posts: 8,975member
    fumi said:
    That's why Credit Cards exist. That's the only reason they exist. To make money.
    What?! You mean to tell me that a for-profit company is for profit? Stop the fucking presses! Next you're going to tell me that Apple makes the iPhone to make money and here I thought Tim Cook was my best friend. /s
    mwhite2old4funroundaboutnown2itivguylostkiwiwatto_cobra
  • Reply 4 of 51
    apple ][apple ][ Posts: 8,680member
    I wonder how strict the sign up requirements will be. Hopefully they will keep the riff raff out, as giving a line of credit to irresponsible people who do not or are not capable of paying their debt back is obviously bad for business and bad for the other paying customers.

    I also think that the color of your virtual card which is shown in picture #2 will look different from user to user. If somebody for example uses 100% of their purchases in only one category, then their entire card might be purple, depending on the category.

    I'll be applying for this card as soon as it's available.

    I just hope that Apple Pay and contactless payments continues to be adopted by even more retailers. The main grocery store that I go to by my residence does not accept Apple Pay or contactless payments yet. If I go there, which I do often, then I wouldn't use my Apple Card, as I'd only be getting 1%.

    I also hope that Apple will have increased bonuses around the holidays like other cards do, like 5% categories.
    edited April 4 watto_cobra
  • Reply 5 of 51
    apple ][apple ][ Posts: 8,680member
    fumi said:
    This card will not assist you in your finances, its purpose is to destroy your finances. 
    Only if somebody is dumb.

    If two people go to a store and buy a knife and person #1 uses it to cut up a few tomatoes at home while preparing their dinner and person #2 uses it to repeatedly stab themselves in their face, then it's not the knife's fault, or the store that sold it to them.

    Credit Cards are a great tool. It's basically a line of credit and you can pay for items and services using the bank's money, and you get a grace period before you have to pay it back. It's a free short term loan.

    There's something called personal responsibility, and people are responsible for their own choices. People who are terrible with money and personal finances should probably stay away from it though, in the same way that a compulsive gambler or an alcoholic should stay away from casinos and liquor stores.
    edited April 4 n2itivguywatto_cobra
  • Reply 6 of 51
    apple ][apple ][ Posts: 8,680member
    fumi said:
     I really wish Apple fans would see this for what it is. 
    I see it for exactly what it is. A titanium Apple souvenir with my name laser etched into it, sitting in my wallet, that's 100% free. B)
    edited April 4 russwBxBornroundaboutnown2itivguywatto_cobra
  • Reply 7 of 51
    eightzeroeightzero Posts: 2,366member
    I'm curious how I will connect my method of payment. Yes, a "pay now" button, and I think it ties to Apple Pay Cash, but there's no information about how to put money in that except for another credit card (with a fee) and a debit card (no fee) or the coming rewards program.  Surely you won't be able to pay the Apple Card with another credit card, and I do not have a debit card for my bank account (I never use it, and is thus an unneeded risk.) So I'm assuming there will be an panel to add ACH information to pay TO the Apple Pay Cash (like the existing option to move it FROM that.)




    lostkiwiwatto_cobra
  • Reply 8 of 51
    ricochetricochet Posts: 16member
    It’s not clear that an Apple Card will be more convenient than the Visa card I already have through my brokerage account. On a set date each month, that card automatically sweeps my cash account to pay off any balance in full. Why add a step?
  • Reply 9 of 51
    iOS_Guy80iOS_Guy80 Posts: 176member
    eightzero said:
    I'm curious how I will connect my method of payment. Yes, a "pay now" button, and I think it ties to Apple Pay Cash, but there's no information about how to put money in that except for another credit card (with a fee) and a debit card (no fee) or the coming rewards program.  Surely you won't be able to pay the Apple Card with another credit card, and I do not have a debit card for my bank account (I never use it, and is thus an unneeded risk.) So I'm assuming there will be an panel to add ACH information to pay TO the Apple Pay Cash (like the existing option to move it FROM that.)




    Absolutely. Just like I pay my credit card statement each month, through my local bank app and a ACH transfer.ricochet said:
  • Reply 10 of 51
    iOS_Guy80iOS_Guy80 Posts: 176member
    ricochet said:
    It’s not clear that an Apple Card will be more convenient than the Visa card I already have through my brokerage account. On a set date each month, that card automatically sweeps my cash account to pay off any balance in full. Why add a step?
    If it ain’t broke don’t fix it.
    chemengin
  • Reply 11 of 51
    iOS_Guy80iOS_Guy80 Posts: 176member
    apple ][ said:
    fumi said:
    This card will not assist you in your finances, its purpose is to destroy your finances. 
    Only if somebody is dumb.

    If two people go to a store and buy a knife and person #1 uses it to cut up a few tomatoes at home while preparing their dinner and person #2 uses it to repeatedly stab themselves in their face, then it's not the knife's fault, or the store that sold it to them.

    Credit Cards are a great tool. It's basically a line of credit and you can pay for items and services using the bank's money, and you get a grace period before you have to pay it back. It's a free short term loan.

    There's something called personal responsibility, and people are responsible for their own choices. People who are terrible with money and personal finances should probably stay away from it though, in the same way that a compulsive gambler or an alcoholic should stay away from casinos and liquor stores.
    I was thinking of a response. You took the words out of my mouth. Thank you. 
    n2itivguywatto_cobra
  • Reply 12 of 51
    SoliSoli Posts: 8,975member
    eightzero said:
    I'm curious how I will connect my method of payment. Yes, a "pay now" button, and I think it ties to Apple Pay Cash, but there's no information about how to put money in that except for another credit card (with a fee) and a debit card (no fee) or the coming rewards program.  Surely you won't be able to pay the Apple Card with another credit card, and I do not have a debit card for my bank account (I never use it, and is thus an unneeded risk.) So I'm assuming there will be an panel to add ACH information to pay TO the Apple Pay Cash (like the existing option to move it FROM that.)
    1) It will not tie to Apple Pay Cash (APC). Apple has or will be removing the option to tie a credit card (CC) to APC—only a debit card will be allowed. If they allow you to use money within APC to make a payment to your Card, that would be a nice feature since you wouldn't have to input any routing and account data manually -and- you wouldn't have to wait the 1-3 business days for the ACH (the free option) to push monies back to your checking account before you make a payment toward your Card. I'm a bit skeptical of that setup because one is via Discover and the other is Goldman Sachs. While this may all like an Apple-to-Apple payment from the outside, it would involve something more complex setup on the backend which could incur higher costs that might not be feasible for any involved party.

    2) My guess is there will be a Goldman Sachs website, app, and possibly an option in the Wallet app portal for the Card in which to pay off your charges using a bank routing and account number. My reasoning for the 3rd option is because they will be offering all the details on how much you need to pay with the Wallet app portal for the Card to pay down your balance so having you do it via that portal for the card is more streamlined than pushing you out to another app, but that's just speculation on my part.
    edited April 4 watto_cobra
  • Reply 13 of 51
    eightzeroeightzero Posts: 2,366member
    ricochet said:
    It’s not clear that an Apple Card will be more convenient than the Visa card I already have through my brokerage account. On a set date each month, that card automatically sweeps my cash account to pay off any balance in full. Why add a step?
    Indeed. I presume then you don't look at your statements to verify the charges are correct, and if you do, you always recognize each charge. Otherwise, the integration to apple maps is a worthwhile step. And..it is free. I like free. Always found that a good price.

    And your Visa card gives you 2% back on all purchases? Cool. I'll use Apple Card as the default Apple Pay option, and if no Apple Pay, likely use a different card, as I can do better than 1%. The physical card is neat, but it likely doesn't go in may wallet.
    Solin2itivguylostkiwiwatto_cobra
  • Reply 14 of 51
    The one feature that would get me to use a service like Apple Pay would be receipt management. Where I could get a fully itemized digital receipt automatically sent to me that could be imported in financial software like Banktivity.
    chemengin
  • Reply 15 of 51
    I used to work with a kid who was about 8 years younger than me. He kept getting calls at work from a debt collector. We were talking about it one day and he commented that it all stemmed from a Sears card he got when he turned 18. They sent him an application in the mail which he filled out and was thrilled to discover they gave him a credit line of $3000. According to him he immediately went out and purchased about $3000 worth of Sears merchandise and then started making the minimum payment. Fast forward 12 years and he had slowed down on the payments and was getting the calls. It turned out he had no idea that paying $20 or so a month would mean he would never pay off the card. He looked at it from the standpoint of if they were only asking for $20 every month why should he pay more.

    This was a little before credit card companies started putting that spot on the bill that "explains" the minimum payment and how much you will owe over time. If my former co-worker had something like the interest slider that will be available with Apple Card he could have (potentially) been a little more aware of money he was losing and made better decisions. I think the "financial health" options that will come along with Apple Card will have a big impact on people who just don't understand how these things work. 

    Side note: the same co-worker was talking to me about buying a house one day and wanted to know why people get 30-year loans. He had found a house the was a little over $100,000, looked at his own annual salary (which at the time was in the range of $65,000-75,000) and wondered why it would take so long. We got into a discussion about interest and he was absolutely shocked to learn how compound interest worked,"WHAT!!! That is BULLSHIT!"

    He thought: loan for $100,000 + 5% (or whatever) interest =$105,000/30/12= ~$300 a month. That was less than his rent!! 

    Clearly there are people out there that tools like this will be a massive help to.

    watto_cobra
  • Reply 16 of 51
    SoliSoli Posts: 8,975member
    eightzero said:
    The physical card is neat, but it likely doesn't go in may wallet.
    Like I assume a lot of people will do, I'll be using my Card for Apple Pay when 2% is equal to or better than other options (which will exclude my 3–5% back with other purchase types), but never carry the physical card on my person.
    edited April 4 lostkiwiwatto_cobra
  • Reply 17 of 51
    ricochet said:
    It’s not clear that an Apple Card will be more convenient than the Visa card I already have through my brokerage account. On a set date each month, that card automatically sweeps my cash account to pay off any balance in full. Why add a step?
    Of course, for the many people who don't have a brokerage account, it's a different story now, isn't it?

    "This thing has no benefit for me, so obviously it has no benefit for anyone."

    It's a tool.  One of many.  Right for some, not for others.  Choose the right tool for your needs, and give others the respect to do likewise.
    JWSClostkiwiwatto_cobra
  • Reply 18 of 51
    fumifumi Posts: 15member
    apple ][ said:
    fumi said:
    This card will not assist you in your finances, its purpose is to destroy your finances. 
    Only if somebody is dumb.
    People in the US hold over $1 trillion in credit card debt. That's a lot of dumb people.

    The average U.S. household now has $8,284 in credit card debt. Apple are now going to contribute to that. I don't know. Getting into the Debt business, It's just not a good look for them, IMO.
    edited April 4 chemengin
  • Reply 19 of 51
    SoliSoli Posts: 8,975member
    I used to work with a kid who was about 8 years younger than me. He kept getting calls at work from a debt collector. We were talking about it one day and he commented that it all stemmed from a Sears card he got when he turned 18. They sent him an application in the mail which he filled out and was thrilled to discover they gave him a credit line of $3000. According to him he immediately went out and purchased about $3000 worth of Sears merchandise and then started making the minimum payment. Fast forward 12 years and he had slowed down on the payments and was getting the calls. It turned out he had no idea that paying $20 or so a month would mean he would never pay off the card. He looked at it from the standpoint of if they were only asking for $20 every month why should he pay more.

    This was a little before credit card companies started putting that spot on the bill that "explains" the minimum payment and how much you will owe over time. If my former co-worker had something like the interest slider that will be available with Apple Card he could have (potentially) been a little more aware of money he was losing and made better decisions. I think the "financial health" options that will come along with Apple Card will have a big impact on people who just don't understand how these things work. 

    Side note: the same co-worker was talking to me about buying a house one day and wanted to know why people get 30-year loans. He had found a house the was a little over $100,000, looked at his own annual salary (which at the time was in the range of $65,000-75,000) and wondered why it would take so long. We got into a discussion about interest and he was absolutely shocked to learn how compound interest worked,"WHAT!!! That is BULLSHIT!"

    He thought: loan for $100,000 + 5% (or whatever) interest =$105,000/30/12= ~$300 a month. That was less than his rent!! 

    Clearly there are people out there that tools like this will be a massive help to.
    That's an unfortunately thing with student loans. I both feel bad for predatory nature student loans have taken with the loss of certain regulation, but also think people need to be responsible for their own finances. Like your ex coworker, people seem to think that paying the minimum interest is enough without considering that they need to also pay down the principle each month if they wish to eventually pay off their loan.

    There are countless online calculators to tell you how long it will take, but it's simple enough to know that if your minimum payment is equal to or less then your interest then you'll never pay it off. One great thing about the Card is that people will be able to easily see what their payments will need to be to pay off their charges within a specific Tim frame.
    watto_cobra
  • Reply 20 of 51
    apple ][apple ][ Posts: 8,680member
    Soli said:
    but never carry the physical card on my person.
    I will. I doubt that it's any thicker than any of the plastic cards that I already have in there.
    watto_cobra
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