Apple Card's iPhone monthly installment plan now requires a carrier at purchase

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'

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.

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 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.