The Apple Credit Card as a Starter Card: Should You Apply?

Overview

The Apple Credit Card is a tech-infused payment solution that has gained attention for its innovative features and partnership with Goldman Sachs. However, for those just starting their credit journey with no prior credit history, the question arises: Is the Apple Credit Card a smart choice?

Why Avoid Credit Cards?

First and foremost, it's crucial to emphasize that credit card usage should not be taken lightly. As one of the oldest pieces of financial advice, the idea is simple but profound: Avoid spending money you don’t have. Credit cards can be powerful tools, but their misuse can lead to severe financial strain. If you need a credit card to improve your credit score, consider options with low credit limits and appealing rewards. Remember, the key is to always pay your balance in full each month.

Apple Credit Card Accessibility

While the Apple Credit Card might seem like an enticing option, it may not be the best choice for someone with no credit history. Getting approved for an Apple Card can be challenging. This is because the approval process typically requires a certain level of creditworthiness, which often includes a history of responsible financial behavior.

Alternatives for Fresh Credit Bidders

For individuals with no credit, finding the right starter credit card is crucial. Two popular options are the Discover Student Card and the Chase Freedom Student Card. Both of these cards are relatively easy to obtain, and they offer valuable financial education and benefits. By building a solid payment history with these cards, you can gradually enhance your credit score and become a more attractive candidate for higher-limit cards like the Apple Card.

Authorized User Status: A Shortcut to Credit Building

Another effective way to start building credit is to become a Authorized User on one of your family members' well-established credit cards. This means linking your name to their account, but not using the card yourself. Over time, the positive payment history from their account will help you establish a credit profile. This approach, while unconventional, can be a valuable shortcut in building your credit history.

Conclusion

In conclusion, while the Apple Credit Card offers unique benefits, it may not be the best fit for someone starting their credit journey with no credit history. Instead, consider cards like the Discover Student Card or the Chase Freedom Student Card, which are easier to obtain and ideal for building a solid credit foundation. Remember, the key is to use your credit card responsibly and consistently make on-time payments. With the right approach, you can achieve financial stability and improve your credit score over time.