Some Apple Card users received a surprise APR rate drop this week thanks to the two recent interest rate cuts made by the U.S. Federal Reserve in March. The Apple Card’s base APR decreased by 2% for many Apple Card holders, bringing a little extra credit relief during the COVID-19 pandemic.
First spotted by MacRumors, the APR rate was lowered from 12.49 percent to 10.99 percent for Apple Card users with a good credit score. This is the third APR rate drop since the card made its debut in August 2019.
The rate decrease wasn’t triggered by Apple but is a reflection of the US Federal Reserve’s recent efforts to bring credit relief to consumers as the COVID-19 pandemic ravages the global economy. Anytime the Fed funds rate changes, APR goes down or up. The APR rating could possibly go up later this year if the Prime rate is increased. For those that pay off their card at the end of the month the APR rate drop doesn’t really mean much.
Apple has been offering Apple Card users some relief in the midst of the crisis by allowing payments for March and April to be skipped without accruing additional interest. Anyone that wants to skip their March and April payments must enroll in Apple’s Customer Assistance Program.
If you still haven’t tried Apple Card yourself, you can apply for it via the Wallet app on iOS. The card offers 2% cashback on purchases, with Apple products triggering a 3% cashback reward.