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Apple Card launches interest-free installment payments for iPhone

Plus, cardholders can enjoy an increased rewards rate through the end of the year


The Apple Card has launched a much-awaited feature – interest-free installment plans for iPhone purchases.

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Beginning Dec. 10, 2019, Apple Card holders can enjoy an all new perk – interest-free installment plans for your next iPhone purchase. Now, users can enjoy a lengthy 24 months to pay off their phone without accruing steep interest charges.

With the latest iPhone models costing Apple customers $1,000 or more, this new perk is sure to add significant value to the Apple Card. Beyond saving on interest, cardholders who take advantage of an installment plan will be able to track payments and progress in the Wallet app alongside their other card spending. In fact, installment payments will be bundled into the minimum payment due on your card each month – so you don’t have to keep track of more than one bill.

See related: Guide to the Apple Card

The new installment plan operates on a similar model to other iPhone payment plans currently available to Apple customers – but with the added bonus of earning rewards on your purchase.

Additional cash back on holiday purchases

In tandem with the launch of new installment plans, Apple has also announced an increased rewards rate on Apple purchases through Dec. 31, 2019. Cardholders who make Apple purchases in-store or online through the end of this year can earn a generous 6% cash back. For a $1,000 iPhone purchase, that’s $60 back in your pocket.

Should you sign up for the Apple Card now?

If you’ve been mulling over a new iPhone purchase, the increased rewards rate coupled with a user-friendly payment program makes now a great time to take the leap.

One word of warning – you should ensure the Apple card makes sense for your spending outside of the installment payment program. Since Apple offers other long-term payment solutions on its phones, make sure you can get value out of the card on your other spending.

Currently, Apple Card offers 3% cash back on Apple purchases (after the 6% promotional rate expires on Dec. 31, 2019), 3% back at select merchants when you use Apple Pay, 2% on general Apple Pay purchases and 1% on all physical card purchases.

See related: New Apple Card: Innovative features, but are the rewards worth it?

For now, 3% cash back merchants are limited to Nike, Uber, Uber Eats, Walgreens and T-Mobile stores. Unless you frequent these retailers and use Apple Pay regularly, the card might not make sense for you.

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The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

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