The Apple Card will be available to the general public by the end of the summer and the hype is real. But before signing up for any credit card, it's important to look into what it offers, as well as any fees that might come along with it. While there are no annual or international fees, the interest rate on the Apple Card can vary depending on a few factors.
According to Apple, the "goal with Apple Card is to provide interest rates that are among the lowest in the industry." The Apple Card interest rate will technically vary depending on "creditworthiness," per Apple. Specifically, the APR (Annual Percentage Rate) will be anywhere between 12.9-23.9%. So if you charge a bunch of purchases to your card and don't fully pay off your balance at the end of the month, you'll have to pay interest on whatever you have left on your card. This is why it's super important to know what your interest rate is prior to that.
When you apply for an Apple Card, your interest will be calculated in real time, according to Apple. So you don't have to worry about not knowing what your interest rate will be — you'll be able to have that information up front, and then you can use that information to decide whether you want to proceed or not.
Now you might be wondering how to tell what your "creditworthiness" is, since it could mean a difference of up to 10% in your interest rate.
Credit card companies determine your specific interest rate based on how good your credit report is, according to NerdWallet. Specifically, they go off of your credit score, which is a number used by lenders to determine how likely you are to pay your bills for any given loan. Your credit score is determined by a number of factors, including: your payment history (AKA how often you've paid bills on time), the amount of debt you have on all of your credit cards, the length of your credit history, your recent activity (AKA whether you've applied for credit cards recently), and your balance-to-limit ratio (AKA the percentage of your credit limit that you have available, versus the credit limit you've already used up), according to Investopedia.
The better your credit score is, the lower your interest rate will be. You can check your credit score through a number of providers, like Credit Karma. Oh, and if you manage to increase your credit score over time, you can also reach out to your credit card company and request a lower interest rate as a result of that increase.
Of course, if you pay off your Apple Card balance in full every month, your interest rate won't be an issue. It's also worth noting that there are other credit cards with very low or no interest rate offerings for you to consider, as well.
If you're cool with the interest rate for the Apple Card and you want to learn more, you can check out the Apple Card site. This will tell you how to apply, and will also break down all the features of the new credit card.