The introduction is Apple’s drive to provide customers with an improved experience in the financial services sector.
A customer-friendly approach to credit applications
The application for a credit card has been the traditional method of conducting a hard inquiry on an individual’s credit report, which lowers their credit score temporarily. Apple’s approach differs from the norm in that it uses a soft task when it first processes an application. This displays the credit limit offer to qualified cardholders without impacting their credit score. On Apple’s official application page, “Apply in as little as a minute to see your credit limit offer with no impact to your credit score.”
Remember that accepting Apple Card’s offer will result in a hard inquiry, which may affect your credit score. However, in the event of rejection or non-approval of the application, the original soft inquiry is not impacted with no negative impact.
Integration with Apple’s ecosystem
Apple Card, launched in 2019, comfortably fits into Apple’s ecosystem with physical and digital cards saved in the Apple Wallet. The users of the card are pampered with such luxuries as rewards in the form of cashback on purchases, enhanced security, and the capability to share the cards with their families. Apple also prides itself on being fearless, clarifying that it has no foreign transaction fees, late fees, or annual fees.
Partnership with Goldman Sachs
Apple Card is supported by Goldman Sachs (NYSE: GS), the bank’s large push into consumer lending. The agreement is even furthered with an offer of a savings account with competitive rates, also managed by Goldman Sachs. More recent news shows this partnership on the outs, however. Goldman Sachs CEO David Solomon did have some words on the deal, originally supposed to conclude in 2030, that could be sooner than later. He stated, “The Apple Card relationship can be terminated prior to its contractual termination date.”
Potential new partnerships
Amid possible dissolution of Goldman Sachs partnership, Apple has also been negotiating with other institutions, news reports say. Apple has been negotiating, it is said, with Synchrony Financial and Barclays as possible successors in assuming Apple Card management. They are ongoing negotiations with no word from official sources on a new partnership.
Regulatory scrutiny and customer experience
Apple Card has not been spared problems. Apple and Goldman Sachs together paid $89 million in fines to the Consumer Financial Protection Bureau (CFPB) in October 2024 for incorrectly handling Apple Card transactions and deceiving consumers about interest-free payment promotions. Apple was found to have neglected to forward hundreds of transaction disputes to Goldman Sachs, causing delays and, in others, reporting inaccurate adverse impacts to consumers’ credit reports. Both companies have since corrected these issues and have collaborated with the CFPB to help affected customers.
Market performance
Apple Inc. (AAPL) stock is $247.10 as of February 24, 2025, up 0.69% from the previous close. Goldman Sachs Group, Inc. (GS) stock is $626.14, up 0.096%.
