If you’re shopping for a new laptop for back-to-school or looking forward to the iPhone 18 release in September, you might not have to pay the full price upfront. In addition to Apple’s latest partnership with Klarna, Apple offers a few other options for spacing out payments.
In June of this year, Apple announced price hikes for some of its products, including MacBooks and iPads. Whether you finance your next Apple purchase or buy it upfront largely depends on your purchasing habits. Do you want to keep your device for years to come, or are you hoping to upgrade to the newest model when it comes out?
CNBC Select covers Apple’s current financing options and questions to consider before sinking hundreds (or thousands) into a MacBook or iPhone.
Best ways to finance Apple products
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Apple Upgrade with Klarna
On July 28, Apple announced a new way for consumers to finance their Apple purchases over time. Partnering with Klarna, users can now lease a new iPhone, Apple Watch, Mac or iPad online, in the Apple Store app or at an Apple Store. Previously, the company offered the iPhone Upgrade Program, which will be sunset in favor of this new option.
Apple Upgrade offers the following terms for several mainstream products:
- iPhone: 12- and 24-month leasing options starting at $17.99 per month
- Apple Watch: 12- and 24-month leasing options starting at $11.99 per month
- Mac: 24- and 36-month leasing options starting at $24.99 per month
- iPad: 24- and 36-month leasing options starting at $11.99 per month
When you apply for an Apple Upgrade lease, Klarna will conduct a soft credit check, which won’t impact your credit score. Once your lease ends, you have the option to keep the device and pay a purchase fee, upgrade to a newer generation or return it.
If you’re someone who tends to use your phone until it physically falls apart, the Apple Upgrade program might not be the best fit. However, if you’re a fan of the newest features, the program could offer a path toward the latest tech.
Plan for your purchase with a budgeting app
Apple Card Monthly Installments
If you own the Apple Card — or are willing to apply for it — you can earn rewards on your purchase while paying it off over time.
This Apple-branded credit card doesn’t charge fees (no annual fees, late fees or foreign transaction fees) and earns 3% back on goods or services purchased directly from Apple. Most notably, it also offers Apple Card Monthly Installments, a 0% APR payment option.
When you check out at Apple using the Apple Card, you can select Monthly Installments from the payment options. This allows you to repay the product in fixed monthly payments at 0% APR. You can track your payments in your Wallet with all your other Apple Card purchases.
Apple Card
Information about the Apple Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
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Rewards
3% cash back on goods or services purchased directly from Apple (including Apple retail stores, the Apple online store, the App Store, iTunes, Apple Music and other Apple-owned properties) on Uber and UberEats, at Walgreens and Duane Reade stores, on the Walgreens app and on Walgreens.com, in T-Mobile stores, at Nike, at Exxon and Mobil stations and at Panera Bread, 2% cash back on Apple Pay purchases and 1% cash back on all other purchases
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Welcome bonus
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Annual fee
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Intro APR
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Regular APR
19.24% to 29.49% variable
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Balance transfer fee
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Foreign transaction fee
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Credit needed
Pros
- No annual fee
- 3% cash back on goods or services purchased directly from Apple, on Uber and UberEats, at Walgreens and Duane Reade stores, on the Walgreens app and on Walgreens.com and in T-Mobile stores and at Nike
- No fee charged on purchases made outside the U.S.
Cons
- Apple Pay isn’t accepted everywhere
- Purchases with the physical card only earn 1% cash back
- No special financing offers or welcome bonus
Carrier financing
This type of financing predominantly applies to iPhones, and there are a few different types offered by major wireless carriers.
At checkout, you can select from one of the major wireless carriers, like AT&T, T-Mobile or Verizon, and finance your purchase over the course of 24 or 36 months, typically. If a carrier advertises a “free phone on us,” this usually means that the carrier pays for the phone over the course of time via monthly credits. This also means that if you change carriers or cancel the plan, you’ll have to pay off the remaining balance of your phone.
0% APR credit card
A 0% intro APR credit card offers an interest-free period to pay off a balance or a large purchase. The zero-interest period will vary depending on the card, but it could get you up to 21 months of no interest payments, giving you time to chip away at your balance.
If you’re looking for an intro APR card that also earns rewards, the Chase Freedom Unlimited® (see rates and fees) earns 3% cash back on dining and drugstores. Its 0% intro APR is 15 months long and applies to both purchases and balance transfers (18.24% to 27.74% variable APR afterwards).
The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome bonus. Plus, if you pair it with a premium Chase credit card that allows point transfers, you can convert your cash back into flexible travel rewards.
- Users get a high rewards rate and strong welcome bonus
- Purchases and balance transfers receive an intro APR
- No annual fee
- Has a foreign transaction fee
- Few rewarding ongoing benefits
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
- Enjoy 5% cash back on travel purchased through Chase TravelSM, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases.
- No minimum to redeem for cash back. You can use points to redeem for cash through an account statement credit or an electronic deposit into an eligible Chase account located in the United States!
- Enjoy 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 18.24% – 27.74%.
- No annual fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Unlimited® card
- Keep tabs on your credit health, Chase Credit Journey helps you monitor your credit with free access to your latest score, alerts, and more.
- Member FDIC
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3% of each transaction in U.S. dollars
The Wells Fargo Reflect®Card could be a better fit if you’re looking for a longer APR period and don’t care about rewards. This card offers a 21-month 0% intro APR on purchases and qualifying balance transfers (followed by a 17.49%, 23.99% or 28.24% variable APR).
Balance transfers made within 120 days from account opening qualify for the intro rate, and a balance transfer fee of 5% (min $5) applies.
The Wells Fargo Reflect® Card is one of the absolute best cards you can apply for if you want to save on interest and pay down debit quickly thanks to its extra generous intro-APR offer on purchases and qualifying balance transfers.
- Incredible intro-APR for purchases and qualifying balance transfers
- No annual fee
- Cell phone insurance: up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible
- No rewards
- No welcome bonus
- High balance transfer fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.49%, 23.99%, or 28.24% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
- $0 annual fee.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
- Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It’s an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.
Balance transfer fee
Foreign transaction fee
Additional ways to save
On top of the financing options available, there are a few ways to potentially lower your device’s price ahead of time. If you have an old Apple device, you can likely trade it in for credit toward your new purchase, both when buying through Apple or a wireless carrier.
Additionally, Apple offers its education savings program, which provides year-round discounts to eligible teachers, students and parents purchasing on behalf of their eligible child.
A 10% discount is also available to current and Veteran members of the U.S. Military, National Guard and Reserve, as well as members of their households, through Apple’s Veterans and Military Purchase Program.
What to consider before making an Apple purchase
Apple products are typically pricier than other everyday purchases, so it’s important to consider if the device you want is fixing a real need or is more of a luxury.
That $30 or $40 monthly payment for your financed Apple device may seem reasonable now, but if you start to carry a balance on your card, interest will cost you significantly more.
If you’re considering a new Apple product, try asking yourself a few of the following questions:
- Do I need this model now?
- What will the total end-price be?
- Will I own this device at the end, or is it temporary?
- Does buying this require me to make other difficult sacrifices?
Also consider how long you’re hoping to keep your Apple product. If you intend to keep your device for several years, you’re likely better off with a path that leads to ownership, not a lease. This could mean buying it outright or using Apple Card Monthly Installments, but at the end of the day you’ll own the device.
If you’d prefer to swap to the latest model, the Apple Upgrade program might be a better fit. Once your lease ends, you can simply upgrade your device to the latest generation with a new agreement.
While it may sound simple, doing the math can help you fully understand whether the cost fits within your current budget. For example, say you use the Apple Card to finance the purchase of a new iPhone, starting at $599. You’ll pay $24.95 per month for the next two years; while that doesn’t sound like much per month, make sure you fit that payment into your overall budget.
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