Goldman Sachs may accept 'subprime' Apple Card applications

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Comments

  • Reply 61 of 127
    SoliSoli Posts: 10,033member
    davgreg said:

    Soli said:
    sflocal said:
    These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
    You can't rebuild your credit without rebuilding your credit.
    You are not responsibly using credit paying usurious rates on credit cards. Has not been that long ago that loans above 10% were only from mobsters and loan sharks.
    I suggest paying off your statement balance each month on or before the due date. I also suggest keeping your credit usage under 10% at any given time, but those variances in your score seem to be short lived so I also wouldn't avoid using your credit about 10% if you need to and/or want the points associated with a purchase.
  • Reply 62 of 127
    I love how these articles always make it sound like the bank is the one taking on the risk by offering credit cards. In reality, it's the card user that's taking on the vast majority of the risk. That's the reason why banks are in the credit card business.
    I don't think you and I use the term "risk" the same way.  Are you suggesting that someone should avoid getting a credit card because it might sneak out at night and make a bunch of unwise purchases you can't afford?  If not, where is the risk?
  • Reply 63 of 127
    JWSCJWSC Posts: 1,196member
    gatorguy said:
    JWSC said:
    6502 said:
    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?

    That’s a curious thing to say given that Apple has been criticized for not putting their ever increasing cash hoard into high yield investments.

    Aside from helping suppliers set up plant and facilities, what better way would Apple have to make good returns on that cash by putting it to use to help customers buy their products and services.  Sure is better than investing in low yield treasuries and bonds.

    Is Apple putting their own money behind this? I thought GS was backing it.
    We don’t know because neither Apple nor Goldman are saying anything about this.  But if I was Tim, that is what I would be doing.
  • Reply 64 of 127
    JWSCJWSC Posts: 1,196member
    Soli said:
    davgreg said:

    Soli said:
    sflocal said:
    These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
    You can't rebuild your credit without rebuilding your credit.
    You are not responsibly using credit paying usurious rates on credit cards. Has not been that long ago that loans above 10% were only from mobsters and loan sharks.
    I suggest paying off your statement balance each month on or before the due date. I also suggest keeping your credit usage under 10% at any given time, but those variances in your score seem to be short lived so I also wouldn't avoid using your credit about 10% if you need to and/or want the points associated with a purchase.
    To increase your credit score you want to ALMOST pay off the balance each month and make sure you do it on time.  You need to keep some debt on your card.  Counterintuitive again.

    if your credit score is already good then no need to worry and you can pay the full balance each month.
    dysamoria
  • Reply 65 of 127
    SoliSoli Posts: 10,033member
    JWSC said:
    Soli said:
    davgreg said:

    Soli said:
    sflocal said:
    These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
    You can't rebuild your credit without rebuilding your credit.
    You are not responsibly using credit paying usurious rates on credit cards. Has not been that long ago that loans above 10% were only from mobsters and loan sharks.
    I suggest paying off your statement balance each month on or before the due date. I also suggest keeping your credit usage under 10% at any given time, but those variances in your score seem to be short lived so I also wouldn't avoid using your credit about 10% if you need to and/or want the points associated with a purchase.
    To increase your credit score you want to ALMOST pay off the balance each month and make sure you do it on time.  You need to keep some debt on your card.  Counterintuitive again.

    if your credit score is already good then no need to worry and you can pay the full balance each month.
    If my credit score is slightly hurt because I don't pay interest on my cards then so be it, but note that I started that I pay off the statement balance each month which is not the same the as paying off the card/account each month.
    edited August 2019
  • Reply 66 of 127
    JWSCJWSC Posts: 1,196member
    davgreg said:

    Soli said:
    sflocal said:
    These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
    You can't rebuild your credit without rebuilding your credit.
    You are not responsibly using credit paying usurious rates on credit cards. Has not been that long ago that loans above 10% were only from mobsters and loan sharks.
    That’s a good meme.  But it’s not actually true.  Although I like the association of the Vampire Squid to mobsters and loan sharks.
  • Reply 67 of 127
    mpantonempantone Posts: 1,931member
    JWSC said:
    Soli said:
    davgreg said:

    Soli said:
    sflocal said:
    These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
    You can't rebuild your credit without rebuilding your credit.
    You are not responsibly using credit paying usurious rates on credit cards. Has not been that long ago that loans above 10% were only from mobsters and loan sharks.
    I suggest paying off your statement balance each month on or before the due date. I also suggest keeping your credit usage under 10% at any given time, but those variances in your score seem to be short lived so I also wouldn't avoid using your credit about 10% if you need to and/or want the points associated with a purchase.
    To increase your credit score you want to ALMOST pay off the balance each month and make sure you do it on time.  You need to keep some debt on your card.  Counterintuitive again.

    if your credit score is already good then no need to worry and you can pay the full balance each month.
    It’s not counterintuitive.

    A credit score is a numerical measurement of a person’s likelihood of paying their debts in a timely manner. If you have no debts no one knows your ability to pay back.

    The three credit reporting agencies that comprise the FICO score evaluate your debts on a weekly basis but not on the same day. If you have multiple credit cards and use all of them occasionally at any one given moment you will likely have a balance due on one or more cards.

    Let’s say you charge $50 on Card A on 8/1 and Experian reviews your credit on 8/2. They see the $50 debt. Then you charge $20 on Card B on 8/3 and TransUnion reviews your credit on 8/4. TU sees $70. On 8/5 you pay off both Cards A and B and Equifax reviews your accounts on 8/6. Equifax sees zero debt. You have $0 in revolving debt but you still have debt.

    That’s what the credit agencies look for: transactional activity including timely payments.

    Do this for 10, 20, 30 years and lenders see a pattern. “This guy is good at paying his debts. If we lend him money, he’ll probably pay us back without any fuss.”

    Yes lenders would rather have you pay the occasional interest charge but it certainly isn’t necessary. I haven’t carried any revolving consumer debt in 20+ years and my FICO score ranges anywhere between 802 and 822. 
    edited August 2019 JWSC
  • Reply 68 of 127
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Soli said:
    JWSC said:
    Soli said:
    davgreg said:

    Soli said:
    sflocal said:
    These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
    You can't rebuild your credit without rebuilding your credit.
    You are not responsibly using credit paying usurious rates on credit cards. Has not been that long ago that loans above 10% were only from mobsters and loan sharks.
    I suggest paying off your statement balance each month on or before the due date. I also suggest keeping your credit usage under 10% at any given time, but those variances in your score seem to be short lived so I also wouldn't avoid using your credit about 10% if you need to and/or want the points associated with a purchase.
    To increase your credit score you want to ALMOST pay off the balance each month and make sure you do it on time.  You need to keep some debt on your card.  Counterintuitive again.

    if your credit score is already good then no need to worry and you can pay the full balance each month.
    If my credit score is slightly hurt because I don't pay interest on my cards then so be it, but not that I started that I pay off the statement balance each month which is not the same the as paying off the card/account each month.
    I don;t think he was correct in that statement anyway.   Yes, it's good to keep some debt -- but in the form of loans.   I have seen no evidence that paying off a credit card will lower your score.   Closing one will, but only because you decreased your total line of credit available.
  • Reply 69 of 127
    JWSCJWSC Posts: 1,196member
    Soli said:
    JWSC said:
    Soli said:
    davgreg said:

    Soli said:
    sflocal said:
    These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
    You can't rebuild your credit without rebuilding your credit.
    You are not responsibly using credit paying usurious rates on credit cards. Has not been that long ago that loans above 10% were only from mobsters and loan sharks.
    I suggest paying off your statement balance each month on or before the due date. I also suggest keeping your credit usage under 10% at any given time, but those variances in your score seem to be short lived so I also wouldn't avoid using your credit about 10% if you need to and/or want the points associated with a purchase.
    To increase your credit score you want to ALMOST pay off the balance each month and make sure you do it on time.  You need to keep some debt on your card.  Counterintuitive again.

    if your credit score is already good then no need to worry and you can pay the full balance each month.
    If my credit score is slightly hurt because I don't pay interest on my cards then so be it, but not that I started that I pay off the statement balance each month which is not the same the as paying off the card/account each month.
    I don;t think he was correct in that statement anyway.   Yes, it's good to keep some debt -- but in the form of loans.   I have seen no evidence that paying off a credit card will lower your score.   Closing one will, but only because you decreased your total line of credit available.
    Please don’t put words in my mouth.  I never stated or implied that paying your credit card bill in full would lower your score.  It won’t have an effect either way.  But if you want to increase your score then having a little debt and paying on time will do the trick.
  • Reply 70 of 127
    MplsPMplsP Posts: 3,700member
    6502 said:
    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.
    Since they're credit limit is likely only $750, it is likely that they are financially capable enough.  
    A smartphone is virtually a necessity anymore. I have seen homeless people with smartphones because they need it to apply for jobs, get their disability checks, etc. Owning a smartphone really says nothing about your financial situation.
    dysamoria
  • Reply 71 of 127
    MplsPMplsP Posts: 3,700member

    davgreg said:
    Soli said:
    dysamoria said:
    I presume they’re not taking people with bankruptcy on their credit history…
    There's more to it than your credit score, but a bankruptcy usually isn't a detrimental factor. Perhaps most notably is that once you have a discharge you have to wait 8 years before you can file again. It really doesn't take a long time to regain a Good or Excellent credit rating after a discharge if you've actively worked to build and maintain a credit history in good standing.
    Exactly,
    A family member just bought a house this week and they went through bankruptcy in 2017 for medical reasons and their credit is already back up in the 700’s.

    There is an abundance of easy credit out in the marketplace. Nissan and Fiat/Chrysler have been financing anyone with a pulse for quite a few years to build market share.

    The decade of easy money since the 2007-8 financial crisis and 2008-9 recession will come back to bite. Bet on it.
    Yeah, but then you have to drive a Chrysler! 
  • Reply 72 of 127
    Apple showed my credit score as 813. I own my own home, have no debt, and only have one other credit card for which I have paid the full balance every month since I opened the account about 15 years ago. My Apple Card interest rate is 23.99% which is perplexing but no skin off my nose since I pay my balance in full every month.

    I suspect Apple Card is running lots of experiments (e.g., "Let's see if someone with credit profile X will accept Y terms"), and I took the bait because it was shiny. 

    I know Apple Card is still in preview, but the chat support was slow and a bad experience overall. I'd score Apple Card five out of 10 so far. Nevertheless it's fun to experiment with innovation in the payments sector.
    edited August 2019
  • Reply 73 of 127
    mpantone said:
    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.
    My capital one credit limit is $10K. I’ll be curious what Goldman offers.
    I had a $20K credit limit with Capital One. I closed my account in December. I have one other credit card which i pay off in full every month. My credit score is 813. Apple gave me a $7K limit. 
    edited August 2019
  • Reply 74 of 127
    jdb8167jdb8167 Posts: 624member
    Apple showed my credit score as 813. I own my own home, have no debt, and only have one other credit card for which I have paid the full balance every month since I opened the account about 15 years ago. My Apple Card interest rate is 23.99% which is perplexing but no skin off my nose since I pay my balance in full every month.

    I suspect Apple Card is running lots of experiments (e.g., "Let's see if someone with credit profile X will accept Y terms"), and I took the bait because it was shiny. 

    I know Apple Card is still in preview, but the chat support was slow and a bad experience overall. I'd score Apple Card five out of 10 so far. Nevertheless it's fun to experiment with innovation in the payments sector.
    I would check your credit history with the credit agencies. This seems off. Being given the highest rate while being a home owner and a credit score of 813 doesn’t seem right. I don’t own a home and my credit score was only a couple of points higher but they gave me a %18 rate. I know the calculations are complicated but this seems off unless you missed payments on something in the last few years.
  • Reply 75 of 127
    I think it’s great! Help Apple customers (that need it) build up their credit and give a low enough credit limit (e.g. $750) to help ensure they’ll be able to pay. Just another thing to make people appreciate Apple.
    edited August 2019 GeorgeBMac
  • Reply 76 of 127
    stskstsk Posts: 22member
    Another weirdness is that the Transunion credit score they showed as their rate-setting number for me was about 50 points LOWER than my actual Transunion score as checked slightly before and again after my acceptance call. I called Apple, who transferred me to Goldman's special customer service for Apple Card. The agent checked, found the discrepancy between my actual score and the one they used for rate-setting and filed a complaint. We'll see if the rate changes, but the whole thing strikes me as suspicious.
    GeorgeBMac
  • Reply 77 of 127
    I applied for the Apple card on the second day they sent out the invites and I got denied..I know I been discharged from Bankruptcy for almost six months...does anyone know how long until you can reply? They also showed my TransUnion credit score being 704 which I been Doing really well on my credit cards I have now always been paying the full balance off.
  • Reply 78 of 127
    StrangeDaysStrangeDays Posts: 12,251member
    Where or how do you apply for the Apple Card? It pops up in the Wallet app for some people?
  • Reply 79 of 127
    SoliSoli Posts: 10,033member
    Where or how do you apply for the Apple Card? It pops up in the Wallet app for some people?
    Yep. When you click on the (+) in the upper right it will appear if you're iCloud account has been deemed worthy.

    Or, you can try this link, but I keep getting an error, which may be because my iCloud account isn't primed for this and/or because I'm on iOS 13b6.

    edited August 2019
  • Reply 80 of 127
    GeorgeBMacGeorgeBMac Posts: 11,421member
    JWSC said:
    Soli said:
    JWSC said:
    Soli said:
    davgreg said:

    Soli said:
    sflocal said:
    These folks should be working on rebuilding their credit/financial lives instead of applying for more credit cards.
    You can't rebuild your credit without rebuilding your credit.
    You are not responsibly using credit paying usurious rates on credit cards. Has not been that long ago that loans above 10% were only from mobsters and loan sharks.
    I suggest paying off your statement balance each month on or before the due date. I also suggest keeping your credit usage under 10% at any given time, but those variances in your score seem to be short lived so I also wouldn't avoid using your credit about 10% if you need to and/or want the points associated with a purchase.
    To increase your credit score you want to ALMOST pay off the balance each month and make sure you do it on time.  You need to keep some debt on your card.  Counterintuitive again.

    if your credit score is already good then no need to worry and you can pay the full balance each month.
    If my credit score is slightly hurt because I don't pay interest on my cards then so be it, but not that I started that I pay off the statement balance each month which is not the same the as paying off the card/account each month.
    I don;t think he was correct in that statement anyway.   Yes, it's good to keep some debt -- but in the form of loans.   I have seen no evidence that paying off a credit card will lower your score.   Closing one will, but only because you decreased your total line of credit available.
    Please don’t put words in my mouth.  I never stated or implied that paying your credit card bill in full would lower your score.  It won’t have an effect either way.  But if you want to increase your score then having a little debt and paying on time will do the trick.
    "To increase your credit score you want to ALMOST pay off the balance each month and make sure you do it on time.  You need to keep some debt on your card. "
    Those were your words.   Which ones did I put there?
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