What is the minimum monthly payment for an Apple Card?

Decoding Your Apple Card Minimum Payment: It’s More Than Just a Number

The Apple Card, known for its sleek design and cash-back rewards, operates on a flexible minimum payment system. This means there isn’t a fixed monthly minimum; instead, it dynamically adjusts based on your outstanding balance. Understanding this system is crucial to avoiding late fees and maintaining a healthy credit score.

The minimum payment you’ll see each month is the higher of two figures:

• $25: A flat minimum of $25 is always in play. This ensures a consistent payment, regardless of how small your balance might be.

• 1% of your statement balance: This percentage is calculated on your total statement balance, including accrued interest, any applicable fees (like foreign transaction fees), and any late charges from previous months. This means your minimum payment will rise if your balance increases, encouraging faster debt repayment.

Here’s how it works in practice:

• Balance under $25: If your balance is less than $25, the full amount is due. There’s no escaping the full payment in this scenario.

• Balance between $25 and $2500: In this range, the 1% calculation will likely determine your minimum payment. For example, a $500 balance would result in a $5 minimum (1% of $500), but since this is lower than $25, your minimum payment would be $25. A $2500 balance would result in a $25 minimum payment.

• Balance over $2500: As your balance climbs above $2500, the 1% of the statement balance will quickly exceed the $25 floor, resulting in a higher minimum payment. This encourages you to manage larger balances more proactively.

Missed Payments and Their Impact:

Missing payments can have significant consequences. While the initial minimum payment is calculated as described above, missing payments can increase your future minimum payments. This is a common practice among credit card issuers to incentivize timely repayment. Consistently missing payments will not only damage your credit score but will also lead to a higher minimum payment burden.

In summary: While the Apple Card offers convenience and rewards, understanding its dynamic minimum payment system is key to responsible credit card management. Always review your statement carefully to understand the calculation and ensure you make at least the minimum payment on time to avoid penalties and maintain a strong financial standing. If you’re struggling to make your payments, contact Goldman Sachs (the issuer of the Apple Card) immediately to explore options.