I am a college student; can I apply for the Apple Card?

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.

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.

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.

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.

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.

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.

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

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. :)

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 circumstances, then move your money to another bank.

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.

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

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.

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.

Start here: https://support.apple.com/en-us/HT209257. I see no student restrictions.