Apple has decided to enter the ring when it comes to credit cards.
Yesterday, Apple announced its new credit card – the Apple credit card. Backed by Goldman Sachs and carrying a Mastercard logo, it will debut this summer.
Unfortunately, for now, its initial launch will be limited to the U.S.
But that doesn’t mean we can’t speculate on when it may be coming north of the border (if at all), or if it’s even a worthwhile offering.
Apple credit card details
So, what will the Apple Card be offering at launch? Apple is going with a no-fee cash back card with the following earn rates:
- 3% cash back on Apple purchases,
- 2% cash back on purchases made with Apple Pay, and
- 1% cash back if you use your physical card.
There’s no annual, foreign transaction, or late payment fees with this card (interest rates for late payments will still apply).
But that’s not all. It also has some other unique features.
Apple card unique features
First, your cash back will be calculated and made available to you daily. There’s no waiting to get your hands on it – as soon as it’s earned, you can start using it.
A bonus? You can use it for more than just statement credits. Since your cash back is a part of Apple Pay, you can use your cash rewards for any Apple Pay activity.
The application process is also unique. When you apply for the card and get approved, you’ll be given a card number within minutes that you can start using right away.
The physical card? You’ll receive a titanium, laser-etched Apple designed card. And for even more security, it won’t contain any numbers or information on it aside from your name. This info can only be found on Apple Pay.
Available only to iPhone users
That brings us to its first downside – you can only get this credit card if you have an iPhone. So it’s not available to everyone.
And while Apple Pay acceptance is growing, if a merchant can’t accept Apple Pay and you have to use your physical card, you’re only getting half your rewards.
How does it compare in the United States?
In the U.S., however, you’re looking at an average card. It’s easy to get 2% cash back for no annual fees in the U.S. – the Citi Double Cash card does just that.
And while no foreign exchange fee cards are rare in Canada, they are very common in the U.S., so this isn’t that much of a differentiating feature either.
While it is a unique card, it’s not that special.
Apple credit card in Canada?
So what does this all mean for Canada?
I would say it’s still far away from being offered here. I suspect Apple will do their initial launch in the U.S. and slowly scale to other countries. I predict it’ll take at least a year for it to be available in Canada.
Its features aren’t likely to be the same here either. The unique features such as getting your card number right after approval and getting your cash back should be the same. But the earn rates and fees are another story.
I would expect the Apple earnings to stay the same but for the everyday rates to be less. Something around 1-1.25% would be an expected number for Canadian cards with no income requirements.
However, if they do keep the no foreign exchange fees, you’re looking at a great card for those transactions.
Best cash back cards in Canada now
In the meantime, while we wait for it to come to Canada, here are some of the best cash back cards you can get right now.
|Cash Back Card||Earn Rate||Welcome Bonus||Apply|
|Home Trust Preferred Visa||* 1% cash back on eligible purchases
* No foreign exchange fees
|Scotia Momentum Visa Infinite||* 4% cash back on groceries & recurring bills
* 2% cash back on gas & daily transit
* 1% cash back on all other purchases.
|10% cash back in the first 3 months, first year free (terms)||Apply|
|Amex SimplyCash Preferred||* 2% cash back on all purchases||5% cash back, on first $6K in spend (terms)||Apply|
Best for no foreign transaction fees and no income requirements
Pay no foreign transaction fees, and save yourself the standard 2.5% fee other credit cards charge on purchases made in a foreign currency.
Plus, this card will also let you earn 1% cash back on all purchases and comes with free roadside assistance. Just keep in mind you don’t earn cash back on purchases made in a foreign currency.
If saving on fees is what matters most, this card is hard to beat.
Get the full details here:
Best overall cash back card
Our top rated cash back card right now is the
Get great earn rates on your basic day to day spending:
- 4% cash back on groceries and recurring bills,
- 2% cash back on gas and daily transit, and
- 1% cash back on all other purchases.
Plus in the first 3 months, you’ll earn 10% cash back on all purchases, on your first $2,000 in spending.
If a good amount of your budget is spent on gas and groceries, this card will let you rack up some cash back quick.
And for an annual fee on $120 (that’s waived for the first year) and income requirements of either $60,000 personal or $100,000 household, you have a great cash back card on your hands.
Get the full details here:
Best cash back card with no income requirements
Looking for a great cash back card with no income requirements? The
For an annual fee of $99 and no income requirements, get a flat 2% cash back on all of your purchases.
Plus, get 5% cash back in the first 6 months on your first $6,000 in purchases.
With high earning rates and no income requirements, Amex has you covered.
Get the full details here: