The Apple Card* is very popular. It carries the brand power behind the Apple name, has a streamlined user interface and decent rewards -- provided you use it in specific ways. But is it the best credit card out there? Not by a long shot.
Apple's co-branded credit card lacks things that most of the top credit cards on the market have -- a competitive welcome offer, useful additional card perks and protections. Yet despite these obvious pitfalls, people seem to like the Apple Card.
J.D. Powers' annual credit card satisfaction survey once again ranked Apple No. 1 in customer satisfaction for co-branded cards. According to Apple, 12 million people are Apple Card members, which suggests the tech giant must be doing something right.
But when you compare the card's features to other options, the Apple Card doesn't even make our list of the best rewards cards. In fact, Apple's card is surprisingly limited, considering there are only a few ways you can use it to get the most value from it. So what fuels the card's enduring popularity, and should you consider getting one?
Why is the Apple Card so popular?
Apple delivers a sleek user experience across most of its product offerings. And the appeal of high rewards coupled with a lack of card fees is hard to ignore.
What people seem to like most about the Apple Card is its ease of use and simplicity, according to Apple Card fans sharing on Reddit. One user touted the ability to see real-time updates on spending and paying. Another admitted the rewards are not up to par but noted it's easy to access and use with the iPhone.
In fact, the Apple Card's integration with the iPhone "is pretty much a standard that other products aspire to," John Cabell, managing director of payments intelligence for J.D. Power, told CNET.
It seems that people are willing to accept lower rewards and fewer perks as long as the product is easy to understand and use. Apple carries a lot of brand power, too, so if you're already deep in the Apple ecosystem, it makes sense that you'd want to round it out with the company's payment option.
What benefits does the Apple Card offer (and not offer)?
The Apple Card does come with some great features for the right user, but its benefits often come with a caveat.
Cash-back rewards
If you shop at Apple frequently, the card can be a rewarding choice. Cardholders earn 3% cash back on everything Apple, as well as purchases from a handful of select merchants including Ace, Uber, Panera Bread and Mobil.
If you have an iPhone and pay with your Apple Wallet for every purchase, you'll earn 2% cash back. However, if you have an Android, you can't earn the 2% cash-back rewards.
Welcome bonus
The Apple Card is also held back by its lack of a welcome bonus. Whereas most of its competitors offer extra rewards for reaching a one-time spending requirement to boost the cardholder's earnings, the Apple Card has no such bonus. That puts it behind in terms of reward potential.
Card perks
There's a special financing plan available for Apple products, and the card doesn't charge any fees outside of interest if you revolve a balance.
But it doesn't offer any additional card perks that many of the top rewards credit cards provide, such as purchase protection, which guards your new purchases against damage and theft for a number of days. Something that could be very useful if you're buying a $1,200 MacBook.
Our expert's take
When you look at all of its features, there isn't much that makes it stand out among the best rewards credit cards.
"I always saw this as a missed opportunity for Apple to offer exclusive benefits to cardholders, such as early releases of products or special limited edition colors or versions for cardholders," credit card expert Jason Steele said.
"I'm not a fan. It looks great and has no fees, but it lacks a signup bonus, and any intro financing. Its rewards aren't competitive, as you receive 3% on Apple products, but how much does an Apple superfan even buy each year?" he added.
Potential changes to come
Apple announced last year that it was ending its relationship with Goldman Sachs and is seeking a new issuing bank for the Apple Card. According to a report last week, Apple is in talks with Chase to take over its credit and savings accounts. Keep in mind that this is merely speculation, without any guarantee that Chase will be the issuer.
Experts, including Cabell and Steele, think a move to a new issuer like Chase could be good for the card. Both said it could give Apple the opportunity to improve the card, shoring up its rewards and benefits while retaining its sleek aesthetic and popular user experience.
Should you get the Apple card?
If you really enjoy Apple's style and often buy new products or use your Apple wallet for every purchase, the Apple Card could be a convenient choice.
However, it's certainly not the best credit card available. There are plenty of other options that offer a welcome bonus, shopping protections and consistent rewards (like the Wells Fargo Active Cash® Card* or Chase Freedom Flex®*, for example) that could serve you better.
There's also the issuer shakeup to think about. If you've been waiting to apply, you might want to wait a bit longer until more details are available about which bank is taking over for Goldman Sach's.
The rewards and benefits of the Apple Card might look different in a year or so -- and that doesn't have to be a negative outcome. It could be Apple's opportunity to help the card live up to its popularity.
More credit card advice:
- If You're Not Using These 2 Credit Card Hacks This Holiday Season, You're Missing Out on Savings
- What's the Cheapest Way to Get Priority Pass Airport Lounge Access? We Do the Math
- The Chase Freedom Flex's Newest Rewards Categories Are Weird
*All information about the Apple Card, the Wells Fargo Active Cash Card and the Chase Freedom Flex has been collected independently by CNET and has not been reviewed by the issuer.
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