Apple Card to Provide 0% iPhone Financing

During the October earnings report, Tim Cook casually mentioned a special iPhone deal for Apple Card holders. The Apple Card’s Monthly Installments feature will allow customers to purchase an iPhone over 24 months with 0% interest.

By Chand Bellur December 7, 2019 at 7:35 p.m. PDT

Apple Card Monthly Installments Feature Provides 0% Financing for iPhone

Let’s face it, the iPhone is expensive. Although the latest iPhone 11 is relatively inexpensive, those who pine for the Pro version could spend almost $1500. With workstation prices on a device that’s often refreshed, people end up spending a lot of money on iPhones.

One may assume this is good for Apple, however, if people are cash poor, they’re less likely to purchase accessories and, more importantly, less enthusiastic about service subscriptions. Apple’s new credit card, with its Monthly Installments feature, seems to benefit consumers while increasing corporate earnings. The new feature will allow customers to purchase an iPhone with 24 monthly installments.

How Does the Installment Plan Work?

As with all Apple products, fiddling is minimal. You won’t need to go down to the Apple Store and fill out a bunch of forms. Instead, simply buy the iPhone of your choice and opt for the Monthly Installments payment plan. Monthly payments are added to the minimum payment. As long as you pay the minimum, you won’t accrue any interest on your iPhone purchase.

The savings and convenience are obvious. If you have the option to pay 0% interest, it’s always ideal. It’s more favorable in terms of monthly cash flow, and you’re also paying each installment with less valuable money, as inflation slowly increases. Paying for the device in full may give some peace of mind, however, it’s not optimal.

Whether you purchase the iPhone in full or using Monthly Installments, you’ll still accrue 3% Daily Cash. This, combined with 0% monthly installments may have consumers opting for a more expensive iPhone. I’m strongly considering purchasing the iPhone 11 Pro Max, entirely due to this new purchasing option.

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