Why I won't be getting the Apple Credit Card...

Alright guys, so we got to have a heart-to-heart and talk about the Apple credit card and why I won't be getting one. They know a lot of you have asked for my opinion when it comes to this, especially coming from the perspective of someone who's a bit of a credit card nerd. Because I do, in fact, have 13 credit cards right now. I get it, you know, some people collect coins, other people collect stamps, I collect credit cards.

And no, it's not because I'm in debt or anything like that; it's mostly just because I like getting free stuff by signing up for credit card reward bonuses and then redeeming that for free travel. I just really, really like getting free stuff.

But when it comes to the Apple credit card, it's, in my opinion, a little bit disappointing and I'm gonna have to pass on it. Not that I think it won't do well for Apple and their customer base, but Apple had so many amazing opportunities to really make this a slam-dunk home run credit card that everyone should get, and the final product, in my opinion, was just a little bit lackluster.

And here's why. Let's roll the clip. This is Apple Card. Okay, first of all, it's always like a stab through the heart when a channel disables their comments. It's like Apple and Doctor Phil are the only channels on YouTube that love to tease us like this. It's the worst! Make sure to hit the like button if you agree with that.

A credit card created by Apple, not a bank. Okay, so let's clarify that one a little bit further because it's created by Apple, but then it's backed by a bank. And that bank is Goldman Sachs, who also happens to be a leader in the subprime mortgage scandal of 2007, where they admitted to defrauding investors and agreed to pay a 5.1 billion dollar settlement.

But let's make it very clear: it's created by Apple! So it's simple, transparent, and private. Oh wait, all credit card processing is also going to be done through MasterCard, but let's still make this very clear: it's created by Apple.

And unlike other credit cards, it helps you easily understand your spending. It's alright here by week, by month, or by category. Okay, so this is actually going to be a really useful feature, and I've been using Mint.com, which has shown graphs like this for years now. But it's nice that Apple is actually rolling this out into their own credit card ecosystem, and I honestly think this would be a pretty useful feature for most people to have.

I think the reason why so many people overspend on credit cards is because they don't immediately get to see the data in front of them to visualize really just how much they're spending. Like, it's easy to get carried away, swipe a credit card, and be done with it—out of sight, out of mind. But showing real-time data and analytics is absolutely a step in the right direction, and this is honestly a useful feature if you don't already use a site like Mint.com.

And if there's a transaction you don't remember, Apple Card uses Maps to show you where it was, like exactly where. You know, they badly needed this feature in The Hangover! Like, Apple and Goldman Sachs could have solved the entire movie in a matter of seconds. Like, no need to run around Las Vegas getting in trouble, being up with drug dealers. They could have just checked the app and had seen where Doug had made his charges, and that would have been it. Apple, yet again, saves the world!

Let's talk about rewards. You should get them today, not a month from today. That's why Apple Card gives you daily cash with every purchase. Okay, so here's my main issue with this credit card, and also one of the biggest disadvantages that I see with it. They're offering 2% cashback on all purchases, which is good! Don't get me wrong, I would love that; I would gladly take 2%.

But the issue is that you only get 2% cashback on all purchases when you pay with a credit card through Apple Pay. And let's just be real here: that many of the places you'd likely be shopping just don't take Apple Pay. So in all those other situations where you aren't gonna be paying with Apple Pay, the Apple credit card really only gives you 1% cash back, which is honestly pretty low.

But wait, I'm not done there! It gets a little bit better because Apple is offering 3% cashback when you use that card to buy Apple products, which really isn't as good of an offer as you think. And here's why: if your goal is straight up just trying to get 2% cashback, then the Citi Double Cash Rewards credit card already gives you 2% cashback on anything, regardless of whether or not the merchant accepts Apple Pay.

And that Citi Double Cash Rewards credit card also gives you an extended two-year warranty on all of your electronics purchases! So it's basically like you pay 1% of whatever you buy for an extended two-year warranty on Apple products. Let's just go and do some basic math here. We'll go on Apple.com and if you buy the basic MacBook for $1,300, we'll assume that you'll get $39 cash back on your Apple credit card, which works out to be 3%.

And then wait a second, you think you're done, but then they'll try to upsell you before checkout because if you want an additional 3 years' worth of warranty, you could buy that for an extra $269 with Apple Care. Or, you know, crazy thought here, but you could just buy that $1,300 MacBook with a Citi Double Cash Rewards card and then get 2% cash back, which is $26, and with that card, you'll automatically get an extended two-year warranty on your MacBook computer as a feature of using that credit card—totally for free!

So even though you'll get $13 less in cash back by getting 2% instead of 3%, you just got a two-year extended warranty for the loss of $13 in cash back and instead of having to pay $269 for Apple Care. To me, that's just a no-brainer!

But you know what? Let's keep going. Apple Card makes the interest you pay clear and transparent. Pay off a little, the interest is this much. Pay more, that figure goes down until there's no interest at all. Okay, I'll give a point for this one. Get it? Credit? Alright, so anyway, jokes aside, I do think this would be a useful feature for most people, especially people who can't really conceptualize just how much interest is really costing them.

By being able to see the interest firsthand as you adjust the payment, I think it'll really encourage people to spend down their bill as much as they can so they could save money, and I'm all for that. And I really hope to see other credit cards implementing this feature as well in the future.

What you won't pay are fees because Apple Card doesn't have any fees—not even a hidden one. From everything about the card, this is what I honestly like the most, and that would be the no fees. And even though there are plenty of no-fee credit cards already out there that pretty much are identical to the Apple Card, the one thing that really stands out with Apple is that they don't have any foreign transaction fees on a credit card that has no annual fees.

See, typically you would need a slightly higher-end credit card to waive those foreign transaction fees, and even the Citi Double Cash card has a 3% foreign transaction fee. So it's nice to see Apple embracing something without any extra charges. So for that, I'm not gonna hate on Apple; I actually really like that!

Apple Card has a new level for privacy and security. Apple Pay technology creates a unique card number for you and then locks it away in a secure element of your iPhone. Honestly, this is pretty much the coolest part about the entire credit card. It's just having a credit card without numbers on it, and then make that credit card with titanium—it's been titanium laser etched and no number!

That way it appeals to millennials who would love to use that credit card to buy avocado toast on the weekends. I have a feeling that most people are going to get this credit card just for the novelty of it, and I think Apple did a fantastic job in terms of creativity and how they handle credit card information. I think this is different enough for it to become trendy, and I have no doubt that Apple enthusiasts will get the card just for that.

For all the other credit card companies watching this, all you need to do to get people to sign up for your credit card is just make it free and then just make it metal. Apple gets it! I've got a question—just send the text! It's that easy! You don't have to wait on hold or remember your mother's maiden name, and the texting feature is pretty useful too. And it's where you're probably going to talk to a robot, but I would rather text a robot than I would call a robot.

Alright, so after seeing all of that, here's what I honestly think about this credit card in terms of usefulness and practicality. This credit card is really just okay, and I have a feeling from Apple's perspective this is what they were really going for all along. It's a credit card that's really created for mass appeal, and that's it!

It's not built to be the best credit card out there; it isn't meant to offer crazy competitive rewards to compete with American Express or the Chase Sapphire. It's really just meant to appeal to as broad an audience as possible who loves Apple and who wants something that's unique, which is what they'll get with a titanium laser-etched credit card without numbers on it.

And I wouldn't be surprised when this soon becomes the new trend among credit cards to issue blank cards without numbers on them. And when it comes to something unique or special, this is really what I think this credit card has going for it. It's a bit of a novelty, but at the same time, it's kind of cool and gets attention, and it also costs nothing to get with 1% to 3% cash back, which is decent!

So for that, I will have to give it to Apple—that is a good feature! And like I said, for most people, this card will be perfect for them. Apple is not going after the people who really maximize rewards and try to squeeze the most value from everything they do. Apple really seems like they were aiming to make something that's probably a little bit better than what the average person is currently getting with their random crappy credit cards, and that's their market.

And you know what? Arguably, that market is much bigger to go after than people like me and most of you guys watching who just want crazy good benefits and rewards, and who also just want the best of the best. So in terms of market share, I have no doubt that Apple will be successful with these cards, and many, many people will get it only because it's Apple, only because it's metal, and only because it's got a trendy factor to it.

But with that said, I do think Apple missed a huge opportunity to offer some type of signup bonus with this card to attract an even larger audience. Like, this was their golden opportunity to get people into a frenzy over getting the credit card who wouldn't have ordinarily applied! Like if they wanted a ton of new customers, just offer a few hundred dollars cash back on like the first two thousand dollars spent on the card.

If they would have done that, I would have 100% gone for the card and that way I could justify having a hard inquiry on my credit report. Even offer $300 off a brand new iPhone XS if you buy it with the Apple credit card, or offer some sort of Apple TV or streaming services for a year. Just offer something with the card! Just offer anything extra just for signing up!

Credit card bonuses are really just becoming the norm to gain a strong customer base right off the bat, and people love them, especially for a no-annual-fee card like this. No one would ever cancel it because there's no reason to cancel, and I guarantee more people would embrace the card if they just offered something extra up front as just a thank you for signing up with the credit card.

But unfortunately, it doesn't look like they're gonna be doing that. So what I recommend this credit card for anyone watching? And the answer is yes! It's a no-fee card, zero transaction fees, and it's titanium without any numbers on it. Like, to me, this card isn't bad. I have nothing against it, and it's absolutely better than most of the other generic, crappy credit cards out there.

However, there are many better credit cards than this, like the Citi Double Cash Rewards card that really just gives you a much more broad 2% cash back without an annual fee, while also offering extended warranty protection. Or the Discover Cashback, which offers 5% cash back on revolving categories.

So if your goal is really to maximize rewards and go for the best credit card possible, the Apple credit card really isn't it. They missed their mark on that one! However, if your goal is just to get a basic no-fee credit card that you can enjoy and use, you don't really care about getting the highest value all the time, then honestly, the Apple credit card is a good card.

And like I said, that's definitely the biggest demographic out there who Apple plans to market to. They understand the average audience, and they're making a credit card to appeal to as many people as possible. But for me, I just don't see the usefulness in the card, and I'd rather use a credit card inquiry to get a card with a high signup bonus, which would give me way more value up front.

And in terms of Apple, I have no doubt this is going to be very profitable for them, and I think this is a good move for them to eventually partner with Goldman Sachs on other future banking products, which is where Apple, in my opinion, will really become profitable with some sort of recurring revenue. And then at that point, they will soon take over the planet!

So with that said, you guys, thank you so much for watching. I really appreciate it! If you guys enjoy videos like this and you haven't already subscribed, make sure to gently tap that subscribe button, gently tap the notification bell, and then feel free to add me on Instagram. I post there pretty much daily, so if you want to be a part of it there, feel free to add me there. Thank you again for watching, and until next time!