Apple continues to release more information about Apple Card as it prepares for a full launch and on Wednesday detailing why some applications were rejected, offering suggestions on how potential customers could improve their chances of adoption.
Described in a Support Pages document, Apple goes through the process that Apple Card partner Goldman Sachs uses when evaluating a new application. Currently, Apple Card is open to a limited number of customers as part of a preview program, and while previous reports suggest acceptance is fairly wide, some applicants in relatively good standing have seen their application rejected.
According to Apple, the card issuer applies the customer's credit rating, credit report and annual income as a general guideline for determining eligibility. However, there are other factors to consider.
As noted in the section entitled "Conditions that may result in your application being rejected, Goldman Sachs" may not be able to approve an "Apple Card application if the customer is behind or previously was behind, under its obligations, this includes a current account closed by a bank or bearing two or more "non-medical debt" (mortgages, car loans, personal loans, utility bills, etc.) that are overdue.
Negative public records such as bankruptcy or repossession can color an application. Paying heavy debt is also seen as negative. For example, clients who lack disposable income after paying off debts have obligations that eat up about 50% or more of their monthly income or line up credit lines and open a "significant" number of new accounts.
Consumers who frequently apply for credit cards or loans or those who have a low credit score may not be approved.
In a section that provides suggestions for users who have been denied access to an Apple Card review, Apple says that potential customers must ensure that all application information is accurate and provides a clear picture of the state issued photo ID, if requested. In the latter case, the applicant's surname must match that of the identity card presented.
Apart from the accuracy of the application and the guarantee of the user's credit report, there are no errors, Apple offers a little restraint as to how the negative decision can be modified. The company largely deviates from the above conditions of withdrawal.
For those admitted to the program, Apple says that the initial credit limit on the card is calculated using the income and minimum payment amounts associated with existing debt. Goldman Sachs also takes into account credit history, as well as some factors that were evaluated during the application evaluation phase.
Customers seeking a limit increase will probably need to use an Apple Card for six months or more before Goldman Sachs can make such a decision, the document said.
Apple began sending invitations to its visualization program in early August following an internal test involving Apple and Goldman Sachs employees. In addition to users who have signed up to be notified of the release of the Apple Card, some arbitrary iPhone owners find the opportunity to apply, appear in the Wallet app.