9 ms·

My laptop died recently, and I went with an M2 MBP. I went in expecting to pay it in full, but with no interest/fees, why wouldn't I choose this? It beats inf

• __derek__ 4y ago
  If you're in the US and have good credit, you can do better by opening a credit card with a 0% APR period for 12+ months in addition to a sign-up bonus (e.g., Chase Freedom Unlimited, Amex Blue Business Plus), although that takes a little more effort.
  • Rimintil 4y ago
    > Chase Freedom Unlimited > After the intro period, a variable APR of 19.49%–28.24% I suppose it isn't an issue if you pay your card off every month, but that's a high APR.
    • __derek__ 4y ago
      You don't need to pay it off every month during the intro APR period: pay the minimum for the first N statements, then pay the full balance, and you'll pay $0 in interest or fees.
      • SoftTalker 4y ago
        Just don't forget, because if you're late paying off the balance they will usually charge interest retroactive to the opening date of the account (not sure that is the case in this specific example).
        • davchana 4y ago
          PayPal Credit (a specific credit line) does that. Discover, Wells Fargo, Chase, Capital one, all wanted to start interest from the date intro apr ended.
        • suresk 4y ago
          It's always good to understand what the policy is on an offer like this, but most credit card intro rates are not like this - it is typically store charge accounts that offer "12 months same as cash" that accrue interest and add it if not repaid during the time offered.
        • __derek__ 4y ago
          If one is worried about forgetting, this probably isn't a good hack, but it should be possible to (a) buy a T-bill or CD maturing near the balance due date and (b) use Bill Pay to schedule a payment for the balance due.
        • artificialLimbs 4y ago
          "Hey Siri, set a reminder in 12 months to get a new credit card."
    • bombcar 4y ago
      Even if you pay everything each month the company makes 2-3% on you minus whatever cash back, which is 12-30+% a year on your monthly spend. You just don’t see it directly.
    • davchana 4y ago
      My score is always in 660-760 range over yearly view, and many of my cards are around 24 to 29 % apr. But as you said, I pay all of them every month, so zero interest paid since 2019. Only a credit unions rewards visa is 12%.
• SkyPuncher 4y ago
  In that case, this is essentially just a credit card (without the benefits/protections). The use case here seems to be people who would not actually be able to pay this off in a month.
  • deleted 4y ago
    [deleted]
  • lotsofpulp 4y ago
    The use case is people who do not qualify for a traditional 2% cash back or equivalent credit card. Surely Apple does want people who can pay their Apple BNPL debt per the schedule.
• imwithstoopid 4y ago
  you probably aren't the target the target is uneducated (in the financial sense) consumers who are enticed into making purchases they might otherwise not make (and probably shouldn't make) Apple probably wants to get at the consumers who are still buying cheap Android phones who will be bowled over by the psychology of splitting the purchase price into installments
• gnicholas 4y ago
  It only applies up to $1,000, and if you used an Apple Card you'd get 3% back on your purchase. If your purchase happened at the beginning of your credit card month, you'd also get 4 weeks of free float, versus the 6 weeks you get here. Doesn't seem like an amazing deal, if a reward credit card is an option, and assuming they'd give you the same thousand dollars of credit.
  • basch 4y ago
    Isn't max credit card float closer to 7 weeks? If you buy something the day after statement close, it takes 4 weeksish to issue another statement, and is due in another 3 weeks. Obviously if you bought at the wrong time in the cycle, the day before statement close, your float can be as little as 3 weeks.
    • gnicholas 4y ago
      Yeah, good point, although this will vary. And the six weeks you get from Apple Pay is only on the last payment.
  • Ductapemaster 4y ago
    I think the OP is referring to the financing options available for larger hardware purchases, which is separate from this program. I bought my M1 MBP using the financing they offer and it was 24 months, no interest, _and_ you do get the 3% back immediately upon purchase. They also set up the payment plan for you so you do not have to worry about missing a payment and getting charged interest you were intentionally avoiding. It's a great option if you are on top of your finances, but the point remains that it can easily be used to live outside of your means.
  • babypuncher 4y ago
    Apple Card has had BNPL for Apple Store purchases for a while, and it's not subject to the $1,000 limit that this new service is.
    • davchana 4y ago
• hammock 4y ago
  When you do BNPL you forgo the credit card rewards you would otherwise get, which can easily be valued at 3-5% of the purchase (I.e. more than the benefit of taking the free credit)
  • davchana 4y ago
    At least apple card allows 24 installments with 0 apr & 3% cashback up front for apple products at apple store.
• vineyardmike 4y ago
  Remember, it beats inflation in a theoretical sense, but only if you actually will do something with the extra cash today. If your salary won’t change during the loan, and you’re not investing the money you didn’t spend, then you’re not realizing any gains against inflation. In fact, you’re just giving yourself less money tomorrow, when inflation should make other goods more expensive.
  • 535188B17C93743 4y ago
    Hypothetically, you could pop that money into a checking account with extremely marginal interest and still make money. Better in your pocket than Apple's, I guess.
    • vineyardmike 4y ago
      The $25 you might make from saving $1000 is, to me, not worth the cost of having a reoccurring debt to service. Especially in the face of layoffs etc. I suppose someone might say a monthly payment is preferable to less savings in that situation… so I guess the financing could work in your favor depending on your situation.
      • eloisant 4y ago
        A 0% is always better than paying upfront. There is the money you make from your saving account, the safety of having more available savings... The only downside of taking a 0% loan is if you're bad at finance and getting that loan makes you spend more. Either by buying something more expensive that you would without the loan, or buying more stuff with the money you didn't have to give upfront.
      • kortilla 4y ago
        That doesn’t make sense. The comparison is the $1000 being gone today.
  • r00fus 4y ago
    My savings account makes 3.5% interest. My only catch is this loan requires a soft credit report - I have a freeze on most of my credit scores (used to be there were only 3 now there are a few more). Even a soft pull will hit that barrier.
• 999900000999 4y ago
  It's very easy for this to push people into buying more than they need. 90% of people are fine with an M1 Air, the last time I went to an Apple store the sales clerk straight up refused to sell me one. He basically told me I didn't know what I was talking about and kept trying to sell me a pro. I asked him 3 times to sell me an Air, and ended up leaving in frustration. Not before he pitched buying a pro on an Apple line of credit instead. If I come into a store and tell you what I want to buy, we're not having a conversation. You have no idea what or who I'm buying it for. Best Buy doesn't do this, I was able to get my Air without an argument and walk out. If anything, this pay later stuff will make the issue worse. You'll go into the Apple store to be told you might as well get the most expensive thing they have in stock, it's zero down anyway!
  • SoftTalker 4y ago
    If you want to talk about what 90% of people are "fine" with, honestly it's a Chromebook. I have a Chromebook I bought in 2018 for something like $200, and it's "fine" for gmail, online banking, youtube, and other casual stuff. I have an ssh app on it to use for work, and that's "fine" as well. Most people don't need more than this.
    • bombcar 4y ago
      You can get a Chromebook for $149 today right now at Walmart. And a windows 11 craptop for $200. These things are absolutely completely insanely cheap.
  • jeffy90 4y ago
    Do the apple sales people get commission? I seldom enjoy working with people looking to influence me to do something so that they can grow their comission.
    • toyg 4y ago
      They probably have targets. Everything they do is tracked, including sales they close.
    • 4y ago
• lm28469 4y ago
  Same reason I can eat a single donut and be fine while my best mate won't stop until the box is empty People make poor decisions, a lot of people make poor financial decisions, what is a great tool when you're educated is a catastrophe for others The new wave of "pay later" payment systems is clearly a way to artificially boost consumption in the short term
  • shostack 4y ago
    Is it just that? Or is this Apple doing the math and deciding the risk they assume is less than they save from credit card fees?
• sorenjan 4y ago
  > Seems predatory towards people who are buying stuff they can't afford, otherwise I don't see how they make money (minus the overpriced laptop I just bought, I guess). That's exactly why they're doing this, to get people who can't afford Apple's products to buy them anyway. Compare with what Tim Cook said in February: > The price of the most expensive iPhone model has increased by more than half — from $962 to $1,600 since 2009 when adjusted for inflation — but Apple CEO Tim Cook doesn't appear worried about increasing prices. > During an earnings call with investors on Thursday, Cook said he believes people are willing to pay more because the phone has become "so integral into people's lives." > "I think people are willing to really stretch to get the best they can afford in that category," Cook said, responding to a question on whether the increasing average sales price over the last few years is "sustainable." "Willing to really stretch" is just another way of saying "spending more than they should".
• kylehotchkiss 4y ago
  Apple Card already had financing for laptops, in a more compelling monthly plan instead of 6 weeks. Same no-interest/fees setup.