Apple Card's iPhone installment plan now requires a carrier

Apple has changed Apple Card financing terms for iPhone, just ahead of its new device season.

Apple Card Monthly Installments will still allow customers to pay for products with zero interest using a portion of their approved Apple Card balance. But new eligibility terms announced in June 2023, are now in effect.

As of August 15, 2023, customers financing an iPhone via Apple Card Monthly Installments will be required to connect their device to a carrier at purchase. This practice was already in place when buying an iPhone in a physical Apple Store location, but it is now extended to online purchases.

This is a different financing option from Apple's iPhone Upgrade Program, which is financed through Citizens One. It also doesn't apply to customers who pay without financing.

Similarly, Apple Watch financing is being changed, though in this case it's that the repayment term is reduced from 24 months to 12 months.

Apple tends to announce its new iPhone and Apple Watch during a September event. That would mean these financing changes have gone into effect just in time for the new device purchasing season.

6 Comments

visciousp 1 Year · 2 comments

About 1 year ago

The apple card installment plan for a new phone is sort of a scam or at least misleading. When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit. So yeah, you only have to pay monthly... but they aren't really extending you credit because they reduce your total credit as a security. Losing 1000+ in credit (buying power) isn't really worth 3% back. The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit. Just sayin'

trustnoone00 20 Years · 29 comments

visciousp said:

The apple card installment plan for a new phone is sort of a scam or at least misleading. When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit. So yeah, you only have to pay monthly... but they aren't really extending you credit because they reduce your total credit as a security. Losing 1000+ in credit (buying power) isn't really worth 3% back. The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit. Just sayin'

I found this out when buying my AppleWatch Ultra. I ended up paying it off almost right away, it’s a lesson learned honestly. Not a fan of unlocked carrierless iPhones going away from being able to be financed for 24 months, I think that this will make many people rethink that aspect. Personally it seems that somehow the carriers are controlling this, not sure how as it has seemed that Apple has had the upper hand in most of their dealings over the years. I just hope in the future things for the AppleCard get better and that this isn’t the new norm.

Pancake 2 Years · 45 comments

visciousp said:

The apple card installment plan for a new phone is sort of a scam or at least misleading. When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit. So yeah, you only have to pay monthly... but they aren't really extending you credit because they reduce your total credit as a security. Losing 1000+ in credit (buying power) isn't really worth 3% back. The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit. Just sayin'

This is absolutely not a scam. This exactly like other credit cards that offer you an interest free promotion for a certain amount of time. If you are looking for a line of credit go down to your local credit union or bank and they will be happy to extend it to you for a nominal interests rate.

This is an interest free option that you do not have to take and still qualifies for the 3% back.

charlesn 11 Years · 1193 comments

Pancake said:

visciousp said:

The apple card installment plan for a new phone is sort of a scam or at least misleading. When you buy a phone that way, apple removes the full cost of the phone from your apple card credit limit. So yeah, you only have to pay monthly... but they aren't really extending you credit because they reduce your total credit as a security. Losing 1000+ in credit (buying power) isn't really worth 3% back. The citizens one monthly loan is a better deal, it's no interest and doesn't reduce your apple card credit limit. Just sayin'

This is absolutely not a scam. This exactly like other credit cards that offer you an interest free promotion for a certain amount of time. If you are looking for a line of credit go down to your local credit union or bank and they will be happy to extend it to you for a nominal interests rate.
This is an interest free option that you do not have to take and still qualifies for the 3% back.

Pancake is correct. No scam here. No credit card company allows you to make a purchase without reducing your credit limit by that amount. That's how credit limits work. And yes, you could avoid the hit to your Apple Card credit limit by opting for the Upgrade Program through Citizens Bank. But that will count as a new loan, which means your credit score could take a hit. As for the advantages of each, you'll get 3% back on Apple Card vs nothing back from Citizens Bank--but their Upgrade Program allows you to upgrade to the latest phone after 12 payments, which Apple Card payment doesn't offer.

wood1208 10 Years · 2938 comments

Even though I never or rarely switched my Cell carrier; I am still big fan of unlocked phone. For most buying Phone on payment plan works great but I always buy iPhone/s(family of 4) in full price and upgrade every 2 years trading older iPhones. Carrier financed phones are typically locked and can not be used overseas.

About credit reduction issue with Apple credit card, get another credit card and you have more credit to spend.