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