A New Kind of Credit Card?

A while back Apple announced plans to launch the Apple Card. It launched.

A new kind of credit card. Created by Apple, not a bank.

Issued by Goldman Sachs Bank USA, Salt Lake City Branch.

Apple Card completely rethinks everything about the credit card.

It represents all the things Apple stands for. Like simplicity, transparency, and privacy.

And it’s the first card that actually encourages you to pay less interest.

https://www.apple.com/apple-card/

What’s that again? Less interest? Tell me more!

Variable APRs range from 12.99% to 23.99% based on creditworthiness. Rates as of August 2, 2019.

https://www.apple.com/apple-card/#footnote-4

Weird. That sounds exactly like every other credit card I’ve ever had.

The Apple Card app in the Wallet does have some nifty features, such as math and pretty pictures, to help you estimate and plan payments on the card. This is novel. And the card itself is physically satisfying.

But the Apple Card feels like a missed opportunity to make a significantly different credit card. Like many decisions of the Tim Cook era this one is safely pretending to be radical. A truly new kind of credit card would have the following features

  • Low interest, such as one percentage point over the prime rate, for everybody.
  • Provide a ladder out of debt, not just a shovel to make the hole bigger.

I’m sure this card will be profitable.

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