131–140 of 198 posts
Awkward time for Apple. - Moves into finance have been a failure, cancelling their BNPL as well. - Vision Pro basically dead at this point. - A large number of senior execs getting reshuffled/moving on from the company. - Apple Intelligence, still no where to be seen. This is most likely a Goldman Sachs issue, but still, who at Apple decided to partner with the bank that hasn't got any track record in consumer bankin…
There’s actually some nuance to this. One of Apple’s big requirements was to have quite lax acceptance criteria. They didn’t want lots of their customers being denied for cards and creating a negative brand association. Apparently GS was up for that. Possibly because they didn’t actually know what they are doing. My understanding is the loss rate was way too high for them to be profitable. It was well covered at the…
Even with the benefit of the doubt it was naive. Did no one think, he maybe there's a reason all these companies with a lot more experience than GS aren't giving credit cards to everyone?
The real brand risk was never denying people cards – that still happened anyway, the risk was exactly what's happening now.
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Without simply citing greed, I find this difficult to justify or explain. Apple is a premium, luxury brand. They make opinionated hardware and software that has offended many. They’ve certainly never given a phone away, but they’re afraid of offending someone by turning them down if they have bad credit? Rubbish. Forgive me, I’m not trying to shoot the messenger. Nuance or not, I think GP is right. It wasn’t very cus…
> Apple is a premium, luxury brand. People all across the income/wealth spectrum use Apple products, in huge proportions.
Apple and Huawei both sell smartphones, which one has the margins of Ferrari and which one has the margins of Toyota?
Awkward time for Apple. - Moves into finance have been a failure, cancelling their BNPL as well. - Vision Pro basically dead at this point. - A large number of senior execs getting reshuffled/moving on from the company. - Apple Intelligence, still no where to be seen. This is most likely a Goldman Sachs issue, but still, who at Apple decided to partner with the bank that hasn't got any track record in consumer bankin…
Apple Intelligence is on the eligible devices in beta, I've had it for a little bit now. It's nothing exciting but I've been using it.
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The fine should be a deterrent. If the fine is too low, it’s just absorbed as a “cost of doing business” and ceases to be a deterrent.
The total fine is ~3x the apparent consumer loss, which seems reasonable.
I’d like to live in a world where fines are deterrents, though.
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> an auto payment taking a week to withdraw from my bank account As an aside, for anyone using an Apple Card today, a handy way around this is to not make payments via ACH. Use your debit card with Apple Pay to pull money instantly into Apple Cash, then use that to instantly pay your credit card bill. An extra step, sure, but it's instant .
Why would you even use a credit card if you have the money? You don't have to bother with the loan aspects of the card then (and the paying off). You could just use a debit card. This is what keeps me from even considering an apple card, I don't need any credit and getting credit registered against my name will make it more difficult to get a mortgage.
If you use debit, you might be leaving 2% of the deal on the table. (But you are helping the merchant, which could be a good reason)
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> an auto payment taking a week to withdraw from my bank account As an aside, for anyone using an Apple Card today, a handy way around this is to not make payments via ACH. Use your debit card with Apple Pay to pull money instantly into Apple Cash, then use that to instantly pay your credit card bill. An extra step, sure, but it's instant .
Why would you even use a credit card if you have the money? You don't have to bother with the loan aspects of the card then (and the paying off). You could just use a debit card. This is what keeps me from even considering an apple card, I don't need any credit and getting credit registered against my name will make it more difficult to get a mortgage.
Seems crazy for end users but I understand it from the banks' perspective
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> an auto payment taking a week to withdraw from my bank account As an aside, for anyone using an Apple Card today, a handy way around this is to not make payments via ACH. Use your debit card with Apple Pay to pull money instantly into Apple Cash, then use that to instantly pay your credit card bill. An extra step, sure, but it's instant .
Why would you even use a credit card if you have the money? You don't have to bother with the loan aspects of the card then (and the paying off). You could just use a debit card. This is what keeps me from even considering an apple card, I don't need any credit and getting credit registered against my name will make it more difficult to get a mortgage.
I get ten percent cash back on groceries right now. It is subsidized in a sense, and builds out an advertising portfolio on me - those are questionable - but it is money in my pocket.
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The fine should be a deterrent. If the fine is too low, it’s just absorbed as a “cost of doing business” and ceases to be a deterrent.
>The fine should be a deterrent. That's a reasonable position to hold, but crappy comparisons like in the OP doesn't contribute little to the discussion. The fine might be tiny part of worldwide revenue, but how much money are they making off apple cards? If that's tiny as well then the argument is moot.
I disagree. I don’t think the fine should be relative to money gained by breaking a rule. Then it’s not a deterrent for large companies.
You end up in a situation where very large companies can act in illegal ways and just absorb the fine.
A company doing anything worth fining should be fined relative to the size of that company (by some metric)
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> an auto payment taking a week to withdraw from my bank account As an aside, for anyone using an Apple Card today, a handy way around this is to not make payments via ACH. Use your debit card with Apple Pay to pull money instantly into Apple Cash, then use that to instantly pay your credit card bill. An extra step, sure, but it's instant .
Why would you even use a credit card if you have the money? You don't have to bother with the loan aspects of the card then (and the paying off). You could just use a debit card. This is what keeps me from even considering an apple card, I don't need any credit and getting credit registered against my name will make it more difficult to get a mortgage.
If it gets stolen/someone else uses it, all I need to do is tell my bank, and since I have not paid the debt, I am not out any money. It is on the bank. If I was using a debit card, it may take a month+ to be investigated/money returned.
Emergencies/availability having available credit is useful, most of my money is in investment accounts, even if only to get higher money market interest rates. I can transfer to my bank account, but that takes time. Having ~10k in credit available for if I need a last minute plane/hotel/hospital is good in an emergency. Once I'm safe I can move the money around as needed.
Cash back, coming from the USA credit cards give me 2-3% cash back. That is significant considering I use them for all purchases.
I do not believe that credit card accounts have a negative affect on mortgages. They are different types, with credit cards being revolving. As long as you are paying it off and not maintaining a valence, then it should only be a net positive (shows credit history of paying debts).