Thinking about applying for the “Special Financing” on Apple.com? You may want to think twice, here’s why applying for the infamous Apple credit card may not be such a good idea.
For 2013, Apple offers two types of credit cards: the Barclaycard for financing purchases and the iTunes Rewards version that earns rather poor rewards. The Barclays Apple Credit Card is easy to qualify for and offers enticing financing options, such as 12 months no interest on an Apple purchase over $999 if paid in full within 12 months.
If you’re thinking about financing an expensive Apple product with this card, WATCH OUT for the fine print. This card is overall a bad choice to finance a large purchase and may end up costing you more than you think.
October 16th 2013 Update: If you are looking to finance an Apple purchase, we now highly recommend the Discover it Card which is offering 0% APR for 14 months on purchases, with no hidden fees of fine print.
Discover it also allows you to earn a 5% cash back bonus when you buy from Apple online through their ShopDiscover program, this can essentially save you $100 or more on a large purchase.
If you finance an Apple laptop with the Barclaycard, you’re probably interested in taking advance of their no-interest financing.
For purchases under $999 you’ll receive 6 months of no interest if the balance is paid in full within 6 months, while a purchase over $999 qualifies for 12 months of no interest if paid in full within 12 months.
If that sounds like a great deal, consider what happens if you’re even a day late to pay off your balance in full before the promotion period ends. The interest is only deferred and will be added retroactively to your balance while new interest will continue to accrue.
As an example, say you buy a $2,000 laptop with your new Barclays card and receive no-interest for 12 months. When the 12 months is up you still have a balance of $200 remaining. Think you’ll only be paying interest on $200 from here on? Think again.
Interest will be automatically added to your account for the original $2,000 purchase for the past 12 months at a whopping 22.99%!
Your balance is now $660 and interest will continue to accrue until your balance is paid in full.