The Apple Card may not be revolutionary, but the "no fee" aspect of this card paired with cash-back rewards help it stand out.
The card could be helpful for those who occasionally slip up on their card payments. And that's a lot of users: About 42% of people admit they've missed a credit card payment, while 17% said they had skipped paying their card two to four times, according to a survey of 1,000 people conducted by CreditCards.com.
Those charges can really add up. When it comes to late payments, cash-back cards charge average of $36.36 if you don't pay your monthly bill on time, USA Today found. If your payment bounces, your credit card may charge you another fee, which averages out to $34.24.
So if you miss a payment four times, it will cost around $145 in fees, and that's before you add in other normal credit card charges, such as foreign transaction fees and high interest rates.
Right now, the average credit card charges an annual fee of $17.35 and a 1.5% foreign transaction fee, according to WalletHub. Cash-back credit cards in particular currently charge APRs of 17.58%, on average, according to CreditCards.com. Variable APRs for the Apple Card will range from 13.24% to 24.24%, based on your credit, according to the company.
So having a new no-fee credit card on the market is no small thing. And with Apple, unlike with Citi or PenFed, you're getting cash back, too.