Apple and Goldman Sachs will launch a joint credit card this spring, the Wall Street Journal reports. The card is expected to be paired with new Apple Wallet features that will allow cardholders to “set spending goals, track their rewards and manage their balances.”
The Journal reports that the card, which will use Mastercard’s payment network, will offer two percent back on “most” purchases, in line with rewards cards currently offered by other financial institutions, and potentially other discounts on Apple products. The Journal first reported the partnership last year.
Arielle O’Shea, personal finance expert at NerdWallet, says the partnership shows Goldman is trying to attract millennial clients to grow its consumer base. But that doesn’t mean that the card is necessarily the best pick for that generation.
“Given that millennials tend to most value experiences and travel, they may continue to be attracted to travel rewards cards despite Apple’s powerful brand,” O’Shea writes in an email. “Even the biggest Apple fans shouldn’t blindly turn to this card: It’s important to compare annual fees and features when shopping for a new card, and make sure the card fits your spending habits.”
Apple currently offers the Barclaycard Visa with Apple Rewards cobranded card, which lets cardholders finance certain Apple products and earn points for purchases. It comes with no annual fee. The downside, as Inverse noted, is that while it advertises a 0 percent introductory APR, it’s actually a deferred interest scenario, which you’d only know from reading the fine print.
The other drawback of the Barclaycard is that you can’t redeem points for cash, according to NerdWallet, you get gift cards for either Apple or iTunes. The point conversion for the new card isn’t clear from the WSJ article, so that’s something to keep an eye on, regardless of how much you spend on Apple or iTunes purchases.
There are other rewards cards that currently offer two percent back on most purchases, including the Citi Double Cash. The Wells Fargo Cash Wise card gives cardholders 1.5 percent back on all purchases, while the Capital One Savor card* offers three percent back on dining, two percent back on groceries and one percent back on everything else.
You can use a site like NerdWallet or Wallethub to research the pros and cons of rewards cards. Just remember to read the fine print, check for any fees and make sure your credit score hasn’t taken a hit lately. Rewards cards tend to require higher scores for approval.
*Full disclosure: I have the Capital One Savor card.
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