Apple Card's iPhone monthly installment plan now requires a carrier at purchase

Comments

• Reply 1 of 6

  visciousp Posts: 2member

  August 15, 2023 6:58PM

  The apple card installment plan for a new phone is sort of a scam or at least misleading.   When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit.  So yeah, you only have to pay monthly...  but they aren't really extending you credit because they reduce your total credit as a security.  Losing 1000+ in credit (buying power) isn't really worth 3%  back.    The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit.   Just sayin'
• Reply 2 of 6

  trustnoone00 Posts: 29member

  August 15, 2023 9:20PM

  visciousp said:

  The apple card installment plan for a new phone is sort of a scam or at least misleading.   When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit.  So yeah, you only have to pay monthly...  but they aren't really extending you credit because they reduce your total credit as a security.  Losing 1000+ in credit (buying power) isn't really worth 3%  back.    The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit.   Just sayin'

  I found this out when buying my AppleWatch Ultra.  I ended up paying it off almost right away, it’s a lesson learned honestly.  Not a fan of unlocked carrierless iPhones going away from being able to be financed for 24 months, I think that this will make many people rethink that aspect.  Personally it seems that somehow the carriers are controlling this, not sure how as it has seemed that Apple has had the upper hand in most of their dealings over the years.  I just hope in the future things for the AppleCard get better and that this isn’t the new norm.
  

  edited August 2023
• Reply 3 of 6

  Pancake Posts: 45member

  August 16, 2023 12:38AM

  visciousp said:

  The apple card installment plan for a new phone is sort of a scam or at least misleading.   When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit.  So yeah, you only have to pay monthly...  but they aren't really extending you credit because they reduce your total credit as a security.  Losing 1000+ in credit (buying power) isn't really worth 3%  back.    The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit.   Just sayin'

  This is absolutely not a scam. This exactly like other credit cards that offer you an interest free promotion for a certain amount of time. If you are looking for a line of credit go down to your local credit union or bank and they will be happy to extend it to you for a nominal interests rate. 

  
  

  This is an interest free option that you do not have to take and still qualifies for the 3% back.

  
• Reply 4 of 6

  charlesn Posts: 1,062member

  August 16, 2023 7:12AM

  Pancake said:

  visciousp said:

  The apple card installment plan for a new phone is sort of a scam or at least misleading.   When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit.  So yeah, you only have to pay monthly...  but they aren't really extending you credit because they reduce your total credit as a security.  Losing 1000+ in credit (buying power) isn't really worth 3%  back.    The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit.   Just sayin'

  This is absolutely not a scam. This exactly like other credit cards that offer you an interest free promotion for a certain amount of time. If you are looking for a line of credit go down to your local credit union or bank and they will be happy to extend it to you for a nominal interests rate. 

  
  

  This is an interest free option that you do not have to take and still qualifies for the 3% back.

  Pancake is correct. No scam here. No credit card company allows you to make a purchase without reducing your credit limit by that amount. That's how credit limits work. And yes, you could avoid the hit to your Apple Card credit limit by opting for the Upgrade Program through Citizens Bank. But that will count as a new loan, which means your credit score could take a hit. As for the advantages of each, you'll get 3% back on Apple Card vs nothing back from Citizens Bank--but their Upgrade Program allows you to upgrade to the latest phone after 12 payments, which Apple Card payment doesn't offer. 

  
• Reply 5 of 6

  wood1208 Posts: 2,921member

  August 16, 2023 11:43AM

  Even though I never or rarely switched my Cell carrier; I am still big fan of unlocked phone. For most buying Phone on payment plan works great but I always buy iPhone/s(family of 4) in full price and upgrade every 2 years trading older iPhones. Carrier financed phones are typically locked and can not be used overseas.
  

  About credit reduction issue with Apple credit card, get another credit card and you have more credit to spend.
  

  
  

  
  
• Reply 6 of 6

  beowulfschmidt Posts: 2,310member

  August 17, 2023 11:25AM

  visciousp said:

  The apple card installment plan for a new phone is sort of a scam or at least misleading.   When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit.  So yeah, you only have to pay monthly...  but they aren't really extending you credit because they reduce your total credit as a security.  Losing 1000+ in credit (buying power) isn't really worth 3%  back.    The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit.   Just sayin'

  
  Every single credit card that I've used that has offered some form of "zero interest for x months" has also reduced the credit limit on the card by the entire amount for such a purchase.  This is no different than a normal purchase that has interest.  The available is reduced in that case too.