If you have a balance on your Apple Card, now would be a good time to pay it off if you can.
Spotted by MacRumors, the interest rates for Apple’s own credit card have gone up. This increase is in response to the United States Federal Reserve, which has been increasing interest rates steadily over the course of the last year in response to growing inflation.
The increase, which affects all Apple Card cardholders, occurred on July 1st. It is currently unknown if it will continue to rise if the Fed continues to raise rates, but it is likely.
What did Apple raise the rates to?
Previously, Apple Card’s variable rate APRs ranged from 11.74% to 22.74%. As of July 1, the credit card’s variable APRs now range from 12.49% to 23.49% (based on your creditworthiness, of course). When Apple Card originally launched, APRs were as low as 10.99% to 21.99%.
Of course, Apple isn’t itself necessarily raising the interest rates. It offers the credit card through its partner Goldman Sachs, and Sachs (if not both companies) is responding to the Fed’s increase in rates.
So, what does this mean? It means that every month you carry a balance on your Apple Card, the company will charge you more interest on that balance. The best way to avoid paying more in interest is to not pay interest at all by paying off the balance of your card every month. However, if that is not possible, pay as much as you can — every bit helps to cut down on the amount of interest you are charged.
Apple Card is the company’s self-branded credit card that offers privacy-focused shopping, Daily Cash, and increased rewards at a number of merchants including the company itself. I’ve personally held one and been very with it, but always keep in mind that if you hold a balance, you’re accruing debt and monthly payments.