Faith Morrow
Apple offers iPhone financing through its iPhone Payments and iPhone Upgrade Program, which allow customers to pay for their iPhones in monthly installments over 24 months with 0% interest. This is done in partnership with a bank, and customers must apply for a new installment loan, which requires a credit check. The iPhone Upgrade Program includes AppleCare+ in the monthly payments and offers the option to expand coverage to AppleCare+ with Theft and Loss for an additional cost. Customers can upgrade to a new iPhone after making 12 payments by trading in their current device and starting a new plan.
| Characteristics | Values |
|---|---|
| First Installment Payment | Charged on a credit or debit card at the time of purchase, pickup, or shipment |
| Subsequent Installment Payments | Charged automatically on a monthly basis |
| Credit Card Interest and Other Fees | 0% APR on the Installment Loan, but the credit card issuer may charge interest or other fees |
| Wireless Service Activation | Requires wireless service activation with an eligible carrier, which may be subject to an additional fee |
| Credit Check | Required for iPhone Payments and New Installment Loans |
| Personal Information | Apple, its subsidiaries, and the Bank may collect and use personal information such as name, address, email, and loan information |
| Communications | Periodic iPhone Payments-related texts, emails, or other communications from Apple |
| Surveys | May receive requests to participate in surveys related to iPhone Payments |
| Privacy | Apple will treat information in accordance with the Apple Privacy Policy |
| Upgrade Option | Available after 6 scheduled payments, with the option to upgrade after paying the equivalent of 12 payments |
| Trade-In | Financed iPhone must be in good physical and operational condition as determined by Apple or its Trade-In Service Provider |
| Data | User is responsible for removing all data from the Financed iPhone prior to trade-in |
Apple's iPhone Upgrade Program
Apple offers an iPhone Upgrade Program that allows customers to pay for their iPhone and AppleCare+ coverage over 24 months with 0% interest. This program eliminates the need for carrier financing or multiyear service contracts, as customers are buying directly from Apple.
The iPhone Upgrade Program is available to qualified end-user customers who finance and activate an eligible iPhone with an AppleCare+ Plan. To enrol, customers need a valid and eligible U.S.-issued personal, small business, or corporate/commercial credit or debit card. Prepaid cards are not accepted. The first instalment payment is authorised on the customer's card at the time of purchase, pickup, or shipment and is processed within three days. Subsequent payments are automatically charged on a monthly basis.
The iPhone Upgrade Program includes the option to upgrade to a new iPhone once 12 payments have been made. Customers can trade in their current iPhone and start a new plan. AppleCare+ is included in the monthly payments, and customers can choose to expand their coverage to include Theft and Loss for an additional cost.
It is important to note that while the Installment Loan has 0% APR, the card issuer may charge interest or other fees according to the cardmember agreement. Customers are responsible for removing all data from their iPhone before trading it in, and Apple is not responsible for any lost files or data. By enrolling in the iPhone Upgrade Program, customers agree to Apple's collection and use of certain personal information to perform the service and support obligations.
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iPhone Payments
To enrol in iPhone Payments, you will need a valid and eligible U.S.-issued personal, small business, or corporate/commercial credit or debit card. Prepaid cards are not accepted. The first instalment payment will be authorised on your credit or debit card at the time of purchase, pickup, or shipment and will be processed within three days. Subsequent instalment payments will be automatically charged to your card on a monthly basis under the terms of the instalment loan.
It is important to note that while you will be charged 0% APR on the instalment loan from Apple, your credit card issuer may still charge you interest or other fees under the terms and conditions of your cardmember agreement. This may include applicable interest on unpaid balances or late payments.
By enrolling in iPhone Payments, you agree that Apple and its designated parties may collect, process, and use certain personal information, such as your name, address, and information related to your loan, to perform the service and support obligations. You may receive periodic communications from Apple regarding your iPhone Payments, including notices about account expiration and changes to the terms and conditions.
Additionally, Apple offers an iPhone Upgrade Program that allows customers to upgrade to a new iPhone after making 12 payments. This program includes AppleCare+ in the monthly payments and offers the option to expand coverage to include theft and loss for an additional cost.
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Credit checks
Apple offers iPhone Payments, which allows customers to pay for their iPhone and AppleCare+ coverage over 24 months with 0% interest. This is done through a 0% APR Installment Loan from Apple's bank partner, Citizens Bank, N.A., doing business as Citizens One ("Bank").
To be eligible for iPhone Payments, you must have a valid and eligible U.S.-issued credit or debit card (prepaid cards are not accepted). A credit check is required, and iPhone Payments is only available to qualified end-user customers. By enrolling in iPhone Payments, you agree that Apple and its bank partner may collect and use certain personal information, such as your name, address, and information related to your loan.
If you are considering upgrading your iPhone annually, each upgrade will require a new credit check as you will need to apply for a new Installment Loan. However, there are options for financing an iPhone with no credit check, such as through certain phone carriers or electronic stores. These options may require a down payment and equal monthly installment payments, or you may be able to lease an iPhone with more affordable monthly payments and the option to purchase at the end of the lease term.
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0% APR
When you buy an iPhone from Apple, you can choose to pay upfront or opt for monthly instalments at 0% APR. This means you can pay for your iPhone over 24 or 36 months without incurring any interest charges.
To be eligible for the 0% APR option, you need to use Apple Card Monthly Instalments (ACMI) as your payment method when checking out. This option is only available in the US and is subject to credit approval and your credit limit. You can choose from eligible carriers, including AT&T, Boost Mobile, T-Mobile, or Verizon.
It's important to note that if you opt for the 0% APR instalment plan, you will need to enter into a 24-month contract with Apple's bank partner, Citizens Bank (doing business as Citizens One). Additionally, you will be required to provide personal information such as your name, mailing address, and email address.
While the 0% APR option can be a convenient way to purchase an iPhone without paying any interest, there are a few considerations to keep in mind. Firstly, make sure to compare prices with other retailers, as sometimes the 0% APR option can translate to an inflated price. Additionally, if you miss or are late with a payment, the interest rates can be high and applied retroactively to the beginning of the loan. Therefore, it's crucial to ensure you can make the payments on time.
Another thing to consider is that having some credit history can be beneficial when applying for loans or financing options. In some cases, not having any debt or credit history may work against you when applying for the 0% APR instalment plan.
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AppleCare+
Apple hardware typically comes with a one-year limited warranty and up to 90 days of complimentary technical support. AppleCare+ extends this coverage and provides additional benefits, such as priority support and hardware coverage. It's important to note that AppleCare+ must be purchased within a certain timeframe, so be sure to check your device's eligibility and purchase AppleCare+ if you want the extended coverage and support that it offers.
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Frequently asked questions
Apple offers an Installment Loan Program that allows customers to pay for their iPhone over 24 months with 0% interest.
You can pay for your iPhone in monthly installments using a credit or debit card. Alternatively, you can pay through a product loan or cash loan from Home Credit.
Yes, you can upgrade your iPhone after making 12 payments. You will need to trade in your current iPhone and start a new plan.
The iPhone Installment Loan Program may be reported as an outstanding balance on your credit card, which can lower your credit rating. Applying for a new installment loan with each upgrade also requires a new credit check.
