Want an Apple Card? Here's why you could be denied one, says Apple

Too many debts, bad debts, late payments, and bankruptcy could stop you getting an Apple Card.
Written by Liam Tung, Contributing Writer

Apple's flashy titanium credit card is sure to be desirable for iPhone fans. But while you can go into debt to buy an iPhone, that same debt could be part of the reason your application for a card is denied, depending on how you manage your repayments. 

Every Apple Card application will need to go through the usual credit risk assessments carried out by banks, which in this case is Goldman Sachs.  

Apple has recently started handing cards out to select people, but won't officially open Apple Card applications until later in August. 

Successful applicants get a card with an Apple logo and will earn 3% for purchases of Apple services and products, and 2% for all contactless payments. 

Apple has published a new document explaining why your Apple Card application might be rejected by Goldman Sachs, which looks at your credit score, credit report, and the income reported on the application. 

Your Apple Card application could be rejected if you're currently lagging on debt payments, recently made late repayments, or if your bank account was closed due to repeatedly spending beyond the account balance. 

Also, two or more non-medical debit obligations that are recently overdue could result in a denial. 

Other reasons for a declined application can include failure to pay sufficient taxes on time, being on the losing end of litigation that results in a judgement, recent bankruptcy, or if your property has recently been repossessed. 

Many of the reasons listed are associated with an applicant being heavily in debt or having too little income to support existing debt payments. But Apple specifies these instances too. 

Goldman Sachs credit risks assessors might judge that you don't have enough disposable income after paying existing debt obligations, such as mortgages, car loans, personal loans, utility bills, and more. 

Likewise, you could be rejected if your unsecured debt obligations are half or more of your total income. The same goes if you've opened a flurry of new credit accounts, and your existing credit lines are maxed out. 

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Other negative signals include a high number of recent credit applications as well as a FICO9 credit score lower than 600. 

Apple said that Goldman Sachs determines an applicant's initial credit limit using "your income and the minimum payment amounts associated with your existing debt to assess your ability to pay".    

If an application is declined, Apple recommends checking the accuracy of the information provided on the application, including the photo of the state-issued ID supplied, and that details match the ID, which must be valid.  

The minimum requirements to get an Apple Card are that the applicant is at least 18 years old, a US citizen or lawful US resident, owns an iPhone compatible with Apple Pay, and that the device uses two-factor authentication on Apple ID.  

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