The downside of Apple Card's stingy credit limits

Last week, I transferred my Apple Daily Cash to an Apple Savings account, which offers a higher interest rate of 4.15%. I also decided it would be a good idea to start using my Apple Card for non-Apple purchases to earn more Daily Cash. However, one problem with that idea is Apple Card's restrictive credit limits.

Mark Gurman, writing for Bloomberg

Credit limits are likewise impacted. Some users have reported Apple Card credit limits as low as $250, which isn’t enough to buy the AirPods Pro with tax, let alone an iPhone. Other users have seen credit limits between $1000 and $5000, perhaps as little as a tenth of the credit limits they’ve been granted elsewhere. For context, the average American’s total credit limit across their cards is over $30,000, according to Experian.

Having recently entered the consumer space, Goldman is risk averse. But sometimes the low credit limits are actually the result of bad information from credit reports and decisions made by algorithms that can’t be easily changed by humans. The low credit limits also mean that users may quickly fill up their credit utilization ratio, potentially hurting their credit scores if they don’t immediately pay down balances.

If you're like me and have used your Apple Card to finance Apple products, you might not have enough available credit for everyday purchases. In my opinion, this issue is preventing me and others from using our Apple Card to its fullest potential. And of course, that means it limits our ability to earn Daily Cash.

You can request a credit limit increase as I did, but good fucking luck with that.

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