As is won’t with most credit cards, the Apple Card’s interest rate on overdue balances will rise as the Federal Reserve raises its benchmark overnight interest rate in an attempt to slow inflation in the United States.
As of July 1, the Apple Card’s variable APRs now range from 12.49 percent to 23.49 percent based on creditworthiness, compared to 11.74 percent to 22.74 percent previously. This is in line with the Fed’s 0.75 percentage point increase to its overnight rate in June.
The Apple Card interest rates had been as low as 10.99 percent to 21.99 percent for much of 2020 and 2021 as the Fed lowered interest rates in response to the COVID-19 pandemic.
With the Fed’s recent interest rate hike, the Apple Card’s APR range will likely see another increase to 13.24 percent to 24.24 percent based on creditworthiness. This would be the Apple Card’s highest interest rate range since 2019.
If you’re carrying an overdue balance on your Apple Card, be aware that interest charges have been increasing and will cost you extra.
The Apple Card remains limited to the United States.
Stay tuned for additional details as they become available.
Via MacRumors and The Wall Street Journal