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PSA: Apple Card's Interest Rate is Rising as Fed Battles Inflation

As is common with most credit cards, the Apple Card's interest rate on overdue balances is steadily rising as the Federal Reserve continues to raise its benchmark overnight interest rate in an attempt to slow inflation in the United States.

apple card 1 iPhone 13
As of July 1, the Apple Card's variable APRs now range from 12.49% to 23.49% based on creditworthiness, compared to 11.74% to 22.74% previously. This is in line with the Fed's 0.75 percentage point increase to its overnight rate in June.

Apple Card interest rates were as low as 10.99% to 21.99% for much of 2020 and 2021 as the Fed lowered rates in response to the COVID-19 pandemic.

According to The Wall Street Journal, the Fed is expected to announce another 0.75 percentage point increase to its overnight rate later today, which means the Apple Card's APR range will likely see another increase to 13.24% to 24.24% based on creditworthiness. This would be the Apple Card's highest interest rate range since 2019.

All in all, if you are carrying an overdue balance on your Apple Card, be aware that interest charges have been increasing and will cost you extra.

Apple Card remains limited to the United States.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

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Top Rated Comments

Airforcekid Avatar
48 months ago
Interest is irrelevant pay in full each month if you find yourself paying interest switch to cash/debit and pay it off ASAP you will not come out ahead with 1-2% rewards like most people seem to think.
Score: 48 Votes (Like | Disagree)
48 months ago

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.
I don’t think it works like that. My credit score is fine and I pay off in full every month. Save yourself the money.
Score: 41 Votes (Like | Disagree)
jent Avatar
48 months ago

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.
I think this is a widely held myth ('https://www.nerdwallet.com/article/finance/credit-score-does-carrying-a-balance-help'). I don't know where it came from but I would recommend always paying in full.
Score: 25 Votes (Like | Disagree)
48 months ago
Never finance purchases unless you have no other choice. If you do, aim to pay it off in 3 months, not 10 years.
Score: 25 Votes (Like | Disagree)
48 months ago
As is common with most credit cards, the Apple Card's interest rate on overdue balances is steadily rising as the Federal Reserve continues to raise its benchmark overnight interest rate in an attempt to slow inflation in the United States. As of July 1, the Apple Card's variable APRs now range from 12.49% to 23.49% based on creditworthiness, compared to 11.74% to 22.74% previously. This is in line with the Fed's 0.75 percentage point increase to its overnight rate in June.

Just for reference, the current Federal Reserve Fed Funds rate is 1.58%, which includes all the recent interest rate increases. Yet credit card rates are 12% to 23%. This isn't unique to Apple's card but demonstrates how twisted and corrupt the financial industry is in our country. Cheap money is handed out but only to banks and they in turn lend that out at 20%. Must be nice to be one of the chosen financial businesses who are virtually guaranteed by the Fed to make a profit.
Score: 24 Votes (Like | Disagree)
DocMultimedia Avatar
48 months ago

I owe a little bit and pay the interest on it in order to increase my credit score. Whenever I pay in full, Apple and Credit Institutions think of me as a dead beat and it hurts my score. After I pay off what I owe though I’m just going to switch to my debit card for August.
Not true. I haven't had a balance on my credit cards in decades, and my current score is over 840. Most banks will now show you exactly what causes a monthly change in your score. Mine took a minor ding when I had a credit check done for a new credit card, and they showed that as the reason. Very clear.
Score: 11 Votes (Like | Disagree)
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