the Apple Card now affects your credit score with the three major US rating agencies: Equifax, Experian and TransUnion.
The map initially only appeared in TransUnion reports until Experian began to take this into account last month. As we explained at the time, this can be good news or bad news for your credit score.
“The Apple card is now the responsibility of Equifax !! “
“Yes, it’s stated on my Equifax report today. “
“Can confirm it’s showing on my EQ file now.” Also retroactive reports.
A card user was intrigued that this resulted in a lower score.
“Did that lower my Equifax score ?! How is it possible?”
We explained it last time.
Those who regularly monitor their credit scores will see their score increase or decrease due to the addition of the Apple card to their report, which is normal.
The calculation of credit scores is based on five factors:
- Payment history
- Length of credit history
- recent activity
- Overall capacity
For example, getting an Apple card without changing your spending habits means that you now have access to more credit, but you no longer use it, so your usage is decreasing (which is good). In addition, you create a payment history with a new credit provider, which also increases your score.
Conversely, any new line of credit reduces the average length of your credit history for all cards and other sources, which can hurt your credit score for a period of time.
One of the advantages of the card is that Apple has repeatedly offered its customers the possibility of deferring payments in response to the coronavirus crisis. Some lose their jobs and others have reduced incomes, cardholders may find it more difficult than expected to keep up with their payments. Apple initially offered this option for the April payment, then successively extended it to May, June, July, and August.
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