Buy an iPhone interest-free with Apple Card

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Apple Card with iPhone
Buying an iPhone through an Apple Card just makes sense. And soon it can be done with zero interest.
Photo: Ed Hardy/Cult of Mac

Apple Card users can soon use this credit card to buy an iPhone with payments stretching over two years, but without incurring any interest.

It’s already possible to buy an iOS handset through the iPhone Upgrade Program, but this requires a separate loan.

Use the Apple Card to buy an Apple iPhone

CEO Tim Cook said, “I’m very pleased to announce today that later this year we’re adding another great feature to Apple Card: customers will be able to purchase their new iPhone and pay for it over 24 months with zero interest. And they will continue to enjoy all the benefits of Apple Card, including 3% cash back on the total cost of their new iPhone with absolutely no fees and the ability to simply manage their payments right in the Apple Wallet app on iPhone.”

Cook didn’t mention whether those who avail themselves of this opportunity will have the option to trade-in their iOS handset after a year for a new model, as is possible through the current iPhone Upgrade Program.

As it stands now, iPhones bought through Apple’s zero-interest program require loans from Citizens One. It’s not known yet if that will change for Apple Card users, as this credit card is backed by Goldman Sachs.

Citizen One does its own credit check. The Apple Card option will apparently be open to anyone who already has this card.

“One of the things we’re doing is trying to make it simpler and simpler for people to get on these sort of monthly financing kind of things,” Cook also said. “We’re cognizant that there are lots of users out there that want a sort of a recurring payment like that, and the receipt of new products on some sort of a standard kind of basis, and we’re committed to make that easier to do than perhaps it is today.”