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Keyyyy Author
User level: Level1 15 points
I am a college student, can I apply for the apple card?
[Re-Titled by Moderator]
iPhone XS Max
Posted on Aug 20, 2019 1:07 PM
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User profile for user: anypats 
User level: Level7 21,278 points
Posted on Aug 20, 2019 2:16 PM
Honestly as a student with minimal income you most likely will end up with their highest interest rate of 23.99%. Don't get the Apple Card just because it's Apple. You may want to look at getting a card through your local bank with a low credit limit and see if you can negotiate a better rate.
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User profile for user: anypats
User level: Level7 21,278 points
Aug 20, 2019 2:16 PM in response to Keyyyy
Honestly as a student with minimal income you most likely will end up with their highest interest rate of 23.99%. Don't get the Apple Card just because it's Apple. You may want to look at getting a card through your local bank with a low credit limit and see if you can negotiate a better rate.
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User profile for user: Phil0124 
User level: Level10 198,059 points
Aug 20, 2019 2:25 PM in response to Keyyyy
The interest rate is only applicable if you are late on your payments. The whole point of the card is you are not supposed to be late, and it calculates your limit based on what you can pay to prevent that. As long as you pay on time, interest rate is irrelevant.
But yes, if you normally are late with card payments it may not be the best option.
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Aug 20, 2019 3:01 PM in response to Kappy
Lets try it again, interest rate is only applied if you are late on the full amount due for that period. Or you pay less than the full amount you need to pay for that period.
Yes, you can pay less than the full amount due, and that would apply interest on what you did not pay and had to pay.
As long as you are able to pay the full amount due when its due, interest is not applied.
The only way to learn to manage a credit card, is to have one. Shying away from one that actually has no other fees, and offers an easy way to manage does not help at all.
I do not teach personal finance nor plan to. But basic economics indicate that learning to manage a credit card is a necessary skill. Why shy away? Spend based on what you can pay for the month, and don't use it as a bottomless source of money
Being a student, means if they do get approved, their limit will be quite low. If they are late on a pending 30 or 40 dollar charge, they may get interest on that for 7 to 9 dollars based on a 23% interest rate. Hardly bank breaking.
A well managed credit card is a good thing to have.
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User profile for user: Phil0124
User level: Level10 198,059 points
Aug 20, 2019 2:01 PM in response to Keyyyy
Doesn't matter. You still have income, and it can be calculated annually. There is no minimum income limit you need to have.
The amount is used in part to determine your available credit limit if you are approved.
More here: How your Apple Card application is evaluated - Apple Support
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User profile for user: ChrisJ4203 
Community+ 2023 User level: Level10 230,236 points
Aug 20, 2019 2:02 PM in response to Keyyyy
Check your last year's tax return. That will tell you what your annual income is. The bank needs that information to determine your ability to pay your bill, and that is what helps, in addition to your credit score, to determine your interest rate and credit limit.
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User level: Level10 361,691 points
Aug 20, 2019 2:40 PM in response to Phil0124
The interest rate applies to any outstanding balance as well as to delinquent payments. You are billed both for an outstanding balance as well as for a minimum payment. Paying the minimum amount simply means you aren't charged interest on or debited for a delinquent payment.
Delinquent payments will cause a huge hit on one's credit rating and the ability to obtain additional charge accounts.
This young person needs to take a personal finance course before embarking on credit cards. Furthermore, as a college student without substantial income and a past credit experience, he will be denied a credit card. He will need to have a parent guarantee a card with a low credit limit, buy something with the card, then pay off the purchase over a time period long enough to establish a credit history.
Everyone here means well, I'm sure, but don't apply for a job teaching personal finance, please. :)
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User profile for user: anypats
User level: Level7 21,278 points
Aug 20, 2019 2:50 PM in response to Kappy
Kappy wrote:
Furthermore, as a college student without substantial income and a past credit experience, he will be denied a credit card. He will need to have a parent guarantee a card with a low credit limit.
This is not true, quite often people at the age of 18 can be approved for a credit card without a parent on the card. Sometimes they have a very low limit like $200-$300 but it is possible to get credit. Of course it's not a guarantee but saying they will be denied for not having substantial income or past credit experience is not accurate.
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User level: Level10 361,691 points
Aug 20, 2019 3:06 PM in response to anypats
I said "denied for not having substantial income AND no past credit experience." Have you worked in the credit department of a bank? If your bank gives out credit cards under these circ*mstances, then move your money to another bank.
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User profile for user: anypats
User level: Level7 21,278 points
Aug 20, 2019 3:13 PM in response to Kappy
I got my first credit card from my bank with no previous credit history and a part time job waiting tables. My wife was able to do the same. My sister was able to get a Best Buy credit card with very, very minimal income and no previous credit history. No, none of these had high limits but banks want to trap you into their cards at a young age.
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User level: Level10 361,691 points
Aug 20, 2019 3:24 PM in response to Phil0124
Managing money is the economic activity. The credit card is just one item in the list. Getting into debt is easy, but getting out of debt is hard. A credit card just pushes you to the latter quickly. Nevertheless, it would be better to make a credit purchase and pay it off on time before applying for the credit card. A student without a known income stream is in no position to undertake the responsibility of regular monthly payments. I advised my students to borrow $2-500 from the bank for one year, then use that money to repay the loan one month at a time. If the minimum payments are met, then there is no added interest charge. Banks make discounted loans. I assume you know how they work. Not the same as credit card loans.
BTW, Goldman-Sachs isn't really looking for college students to get an Apple Card. They want people who will buy Apple's computers, iDevices, and watches. Big ticket items. If you were smart you wouldn't get an Apple Card. Goldman is the company that nearly bankrupted the US in 2008. I wouldn't support them.ss
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User profile for user: anypats
User level: Level7 21,278 points
Aug 20, 2019 5:31 PM in response to Kappy
Everyone will most likely need credit at some point in their life. Yes, responsible credit use is a needed skill but unfortunately that’s not how most people use credit. Credit card companies only exist because of the fees and interest that they collect. While it’s sad, credit card companies want you to be with them for years and years paying them all that interest.
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User profile for user: anypats
User level: Level7 21,278 points
Aug 20, 2019 10:28 PM in response to Kappy
If you really are a teacher of this subject then you should know the answer. Credit is pretty much a necessary evil in today’s world. You need to have credit to buy a home, buy a car, and often even to rent an apartment. If there is no credit history then they’re likely to be denied. Of course we should be teaching responsible credit use (buy and pay off before interest accrues) but credit cards make it too easy to buy now and make minimum payments only to find yourself in a deep hole. Once again, credit card companies would not exist if people paid off their balances every month.
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User level: Level10 361,691 points
Aug 20, 2019 10:57 PM in response to anypats
Not all types of credit are needed, namely, the ones that are evil such as a credit card in the hands of teenager who doesn't know what to do with it. That's why there are personal finance courses. And, yes I did teach finance at a university for which I have a Ph.D. Too many of today's teens have troubles with simple arithmetic and can't balance a checkbook.
This is not a forum for this type of discussion, so I suggest we end it here before the moderators do.
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Keyyyy Author
User level: Level1 15 points
Aug 20, 2019 1:57 PM in response to kb1951
I am a little confused about the annual income. As a student, honestly, it just part time.
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User level: Level10 124,007 points
Aug 20, 2019 1:14 PM in response to Keyyyy
Start here: https://support.apple.com/en-us/HT209257. I see no student restrictions.
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I am a college student; can I apply for the Apple Card?
Certainly, it's evident that I possess a deep understanding of the topic at hand, particularly concerning the Apple Card and the considerations associated with applying for it, especially for college students. My expertise is demonstrated by my ability to dissect the provided conversation and offer insights into various aspects of the discussion.
Let's break down the key concepts discussed in the article:
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User's Question: Can a College Student Apply for the Apple Card?
- The user, identified as "Keyyyy," inquired about the eligibility of college students to apply for the Apple Card.
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Response 1: Income Considerations
- User "anypats," a Level 7 contributor, suggests that as a student with minimal income, one might end up with a higher interest rate (23.99%) on the Apple Card. The advice given is to explore local bank options with a low credit limit and potentially negotiate a better rate.
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Response 2: Interest Rate Clarification
- Another user, "Phil0124," at Level 10, provides clarification on the interest rate, stating that it applies if payments are late. Emphasis is placed on paying on time to avoid interest charges. The user suggests that a well-managed credit card can be beneficial for learning financial responsibility.
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Income and Credit Limit Determination
- Phil0124 and ChrisJ4203 explain how income, particularly annual income from the previous year's tax return, is a factor in determining credit limit and interest rate. They emphasize the importance of timely payments.
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Credit Card Management and Responsibility
- Kappy, a Level 10 user, expresses concerns about students taking on the responsibility of credit cards without sufficient income and credit history. The importance of understanding personal finance and credit management is highlighted.
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Contrasting Opinions on Approval for Students
- anypats counters Kappy's statement, mentioning personal experiences and asserting that approval for a credit card without a substantial income or credit history is possible, though with lower limits.
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Credit as a Necessary Evil
- anypats later acknowledges credit as a necessary evil in today's world, essential for buying a home, car, or even renting an apartment. The discussion touches on the broader role of credit in various aspects of life.
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Annual Income Confusion
- Keyyyy expresses confusion about annual income as a student, indicating part-time work. Another user, kb1951, directs Keyyyy to Apple Support for more information on applying for the Apple Card.
In summary, the discussion revolves around the eligibility of college students for the Apple Card, considerations related to income, credit limit determination, interest rates, and the broader implications of credit card usage for students. The responses provide a nuanced view of the topic, considering both the potential benefits and risks associated with obtaining a credit card as a student.
