How the Apple Card Could Impact Your Credit Score

Like any credit card, the Apple Card can influence your credit score. The impact, whether positive or negative, depends entirely on how you apply for and manage the account over time.

1. The Application: Applying for the Apple Card initially results in a soft inquiry, which won’t affect your credit. However, if you accept the offer, Goldman Sachs will perform a hard inquiry, which may temporarily lower your score.
2. New Account Impact: Opening the card lowers the average age of your credit history. Since lenders prefer a longer history, this can cause a slight, temporary dip in your score, especially if you have few other accounts.
3. Credit Utilization: A crucial factor is your credit utilization ratio—the balance you carry versus your credit limit. Keeping this ratio low (ideally under 30%) is a strong positive signal for your credit health.
4. Payment History: Over time, this becomes the most important factor. Consistently making on-time payments builds a positive record and boosts your score, while late or missed payments can cause significant damage.

How Much Will Apple Card Affect Your Credit Score?

The exact impact of an Apple Card on your credit score depends on your unique financial situation. Here are the main factors that will determine how your score changes after you're approved.

• Hard Inquiry. Applying for the Apple Card can result in a hard inquiry on your credit report. This may cause a small, temporary dip in your credit score for a few months.
• Credit Utilization. Your new credit limit will affect your overall credit utilization ratio. Keeping your balance low relative to your limit can positively impact your score over time.
• Payment History. Making consistent, on-time payments is crucial for building a positive credit history. Conversely, late or missed payments will be reported and can significantly lower your score.

How You Can Avoid Apple Card Affecting Your Credit Score

Join as a Participant

You can be added as a participant to an existing account through Apple Card Family. This allows you to use the card without a credit check, completely avoiding any impact on your personal credit score from the application or account management.

Practice Responsible Use

If you are an owner or co-owner, the initial hard inquiry is unavoidable. To minimize negative impacts, always pay your bill on time and keep your credit utilization low. These habits are crucial for maintaining a healthy credit profile with any credit card.

Ways to Improve Your Credit Score

Improving your credit score is entirely possible through consistent, positive financial habits. According to an expert guide, most people can see meaningful changes within three to six months by following proven methods.

• Establish automatic bill payments. Since payment history is the most significant factor in your score, ensuring you pay on time every month is the most critical step you can take.
• Reduce your credit utilization ratio. Aim to keep your total balance below 30% of your total available credit, as high utilization can signal financial distress to lenders.
• Monitor your credit reports regularly. You can get free reports from all three major bureaus to check for inaccuracies or signs of identity theft that could be hurting your score.
• Become an authorized user. If you have a trusted friend or family member with a strong credit history, being added to their account can help you build your own credit profile.
• Diversify your credit mix. Lenders like to see that you can responsibly manage different types of credit, such as installment loans and revolving credit cards.
• Limit hard inquiries. Applying for too many new accounts in a short period can temporarily lower your score, so be strategic and space out your applications.

The Bottom Line

The Apple Card can affect your credit score, similar to other credit cards. Factors like the initial application and subsequent payment activity are reported to credit bureaus, influencing your overall credit health.

Frequently Asked Questions

Does applying for an Apple Card hurt your credit score?

Applying for the Apple Card results in a soft credit inquiry, which does not affect your score. A hard inquiry only occurs if you accept the offer.

Does the Apple Card report to all three credit bureaus?

Yes, Goldman Sachs, the issuing bank, reports your Apple Card account activity, including payments and balance, to all three major credit bureaus: Equifax, Experian, and TransUnion.

How does my Apple Card credit limit impact my score?

A higher credit limit can lower your credit utilization ratio, which is a significant factor in your credit score, potentially improving it if you maintain a low balance.