Apple Barclaycard and Other Store Brand Credit Cards May Have Big Interest Fees

Store brand credit cards like the Apple Barclaycard are seen throughout the retail industry, offering consumers 0% interest fees and other rewards. However, consumers with store branded credit cards should be wary of hidden fees or interest charges, as these cards can end up costing them more money than they save.

Retailers often advertise store brand credit cards or other financing options, which consist of promises like of 0% interests and seldom discusses potential hidden fees. Often companies will market these store brand credit card deals as “no interest if paid in full,” and will typically be offered with large purchase items like appliances.

However, credit experts warn that store brand credit cards like the Apple Barclaycard come with deferred interest and could potentially cause consumers to owe hundreds in hidden interest fees and other financial charges.

According to Apple’s website, the consumer can “get up to 24 months of special financing and earn rewards points on purchases at Apple” when the Apple Barclaycard is used with Apple Rewards.

Overview of Apple Barclaycard Policy and Potential Interest Fees

According to the Apple Barclaycard benefits listed on the website, consumers can receive points from many different purchase transactions including:

• Three points for every dollar spent at Apple stores
• Two points for every dollar spent at restaurants
• One point for every dollar spent on other purchases

Once the consumer earns 2,500 points, they will receive a $25 Apple store gift card or iTunes gift card. In addition to these benefits, the company gives special financing options for Apple purchases within the first 30 days of the account opening with the promotion period based on purchase amount:

• For purchases made for less than $499: the promotion lasts six months
• For purchases made between $499 to $999: the promotion lasts up to 12 months
• For purchases made between $999 to $1499: the promotion lasts up to 18 months
• For purchases made $1499 or over: the promotion lasts up to 24 months

However it is important to note that the balance on the Apple Barclaycard may be subject to deferred interest if the product is not fully paid off by the time the promotion ends. According to Apple’s website, interest will be charged to the consumer’s account from the purchase date if the purchase balance is not completely paid off by the promotion’s end or if the final payment is late.

Based on the consumer’s credit status, the purchase APR will be: 14.99%, 20.99%, or 27.99% variable. Apple also points out that consumers cannot pay off the purchase amount in full, if the only pay the minimum each months. For consumers who cannot make the purchase deadline, the interest rates on store brand credit cards can reach up to 30%.

These fees are in addition to the remaining balance on the purchase which can be severely impacted and passed to the consumer. Financial experts are warnings consumers to think twice before signing up for store brand credit cards like the Apple Barclaycard, and that these cards are more beneficial for the company than the consumers.

Join a Free Store Debit Card and Credit Card Fees Class Action Lawsuit Investigation

Did you participate in a 0% interest promotion on a store-branded credit card and were charged an interest fee? Were you unexpectedly charged a Returned Payment Fee on a store-branded debit card? You may be eligible to join this class action lawsuit investigation into allegedly deceptive store card fees.

Join the Investigation Now