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.

Top Rated Comments

Airforcekid Avatar
21 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)
chairguru22 Avatar
21 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)
WestonHarvey1 Avatar
21 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)
jent Avatar
21 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)
BootsWalking Avatar
21 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)
Mlrollin91 Avatar
21 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.
You can carry a balance at the end of the statement and not pay interest. As long as you pay off the previous statement balance before the following statement closes, you won’t pay interest but it will still show that the card is being used. The statement balance is reported.

It’s been long proven as a myth that carrying a balance and paying interest increases your credit score.

https://www.consumerfinance.gov/about-us/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/#:~:text=Paying%20off%20your%20entire%20balance,you're%20also%20paying%20interest. ('https://www.consumerfinance.gov/about-us/blog/credit-score-myths-might-be-holding-you-back-improving-your-credit/#:~:text=Paying%20off%20your%20entire%20balance,you%27re%20also%20paying%20interest.')
Score: 11 Votes (Like | Disagree)

Popular Stories

Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
General Apps Messages

iOS 17.4 to Add This 'Groundbreaking' New Messaging Feature

Friday February 23, 2024 5:05 am PST by
With iOS 17.4, set to arrive in March 2024, Apple is bringing a new cryptographic security feature to iMessage called PQ3. This "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks," according to Apple. Let's break down what that means. Apple's iMessage service already supports end-to-end encryption, but security...
iPhone Notch

Apple Explored These Notch and Dynamic Island Designs for iPhones

Friday February 23, 2024 2:05 pm PST by
With the iPhone 14 Pro models in 2022, Apple introduced the Dynamic Island, which can morph and expand to display system alerts, sports scores, and a variety of other information. The feature makes the space surrounding the front camera and Face ID sensors useful compared to the notch on older iPhone models. Apple explored a variety of ideas for the iPhone's notch area over the years before...
New Macs iPads iOS 17 4

What to Expect at Potential Apple Event in March: iPads, Macs, and More

Friday February 23, 2024 8:35 am PST by
Apple often holds its first media event of the year in March, so the company could be just weeks away from announcing new products. Below, we have outlined what to expect from a potential Apple Event this March. Past Apple Events in March Apple has held five events in March since 2015:Monday, March 9, 2015 Monday, March 21, 2016 Tuesday, March 27, 2018 Monday, March 25, 2019 Tuesday,...
iOS 17

When Will Apple Release iOS 17.4 for iPhones?

Friday February 23, 2024 11:56 am PST by
Apple has been beta testing iOS 17.4 for nearly a month now. Below, we explain when the update is likely to be released to all users. In its press release announcing major App Store changes in the EU, which were implemented in response to new regulations under the EU's Digital Markets Act, Apple confirmed that iOS 17.4 will be released at some point in March:Developers can learn about these...
iOS 18 Mock Feature Baubles

iOS 18 Rumored to Have Design Changes, macOS Revamp Coming Later

Sunday February 25, 2024 8:55 am PST by
iOS 18 will likely include some design changes, but a macOS revamp might be a year or two away, according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said Apple is working to update the design of iOS as "early as this year." A sketchy rumor claimed that iOS 18 would feature some visionOS-inspired design elements, and while Gurman agreed that iOS could take some...