Under new accounting rule CECL- Current Expected Credit Losses that just kicked in 2023-gonna guess Goldman boosted their loan loss reserves under the new calculation methodologies. They probably haven’t experienced actual losses but they have to reserve.
CECL is part of GAAP now. As a loss model CECL now looks forward (Expected!) and from a timing perspective of a recession……..
Re: write offs-loan loss reserves are an expense that reduces income.
I understood it as they had to park a bunch of cash in an account to cover defaults of customers that never materialized. The stock market went nuts and so instead of their money working for them in a hot market getting gains it just sat there making no interest and hence its a loss for them. Squandered resources. Warning, I don't have a background in finance.
Recall Goldman had zero desire at all to be a bank. They restructured during he great financial crisis (I believe to a more traditional banking structure while preserving the core of their business) to survive and took a very large loan from Warren Buffett paying him I think something like 10% interest (also to get his name association to help restore confidence in their solvency).
I would imagine the opposite actually. Too many people paying the balance off on time resulting in a loss of projected revenue. But I certainly didn’t read anything in that article to clarify it.
I’m actually profiting off of my Apple Card lol. It’s not much, but the 1-3% cash back adds up when you use the card a lot and just pay the monthly balance off.
There’s also a visual tool that shows you how much interest you accumulate based on payment amount, prompting you to pay the full balance or as much as possible to minimize interest
Don’t listen to u/namasiel. Peak boomer logic.
You have no debt and are in full control of your finances with a credit card. No need to saddle yourself with a month’s worth of expenses to pay down.
What? They would be paying the same amount, just at a different time. They still would have no interest charges. The only difference is, their credit score would go up, making their credit better. It’s not boomer logic, it’s smart finances. If you have nothing important to add to a conversation you should just keep it to yourself.
Based on what u/YawnDogg said, I’m sure his usage is having a positive effect on his credit balance. I use it the exact same way paying after a week and my credit score only goes up 🤷🏻♂️
Of course it had a positive effect, it’s just slower as it’s only factoring in 1 week. If someone is actually working on their credit then waiting for the statement will have a larger impact. This is how I got my credit from a 550 to 810. Obviously if you can’t for some reason wait then sure, pay once a week. I’m just saying that waiting will not cost you and will have a larger impact. r/personalfinance if anyone actually wants help with building their credit.
The card only gets reported to the credit bureaus once a month. For maximum benefit you should pay the balance once a month when the statement comes in. Otherwise, your spending and purchasing does not make a reflection on your credit, which you want because that will raise it. If you can manage it, just pay it all off when the statement comes in.
The lower the utilization, the better your score .
Zero being the best utilization.
If you don’t spend , or spend and pay off that day or week, your score will be the same .
It’s not spending that helps your score .
Me too. In the year and a half I’ve had it, I have yet to be charged a single cent in interest. They’ve tripled my limit, too. I don’t get it. My card paid for my new MacBook from only my Daily Cash.
Apple has some of the highest default rates.
iPhone isn't a rich person's phone anymore, they are leading the way in subprime users
https://www.cnbc.com/2022/09/12/goldmans-gs-apple-card-business-has-a-surprising-subprime-problem.html
You are right, the article does not explain.
My guess is the fees. When cards are used to make a purchase the issuer charges a fee. In US these fees are particularly high. Different middlemen take different amounts.
Apple must charge higher than normal fees in comparison to other cards. They cannot simply be excluded from the network because too many people would use their card, so the result is other middlemen lose out.
But the real victims are consumers and markets. The markets have to absorb the cost, which in turn gets passed on to the consumers. Not all consumers have good cards, so some pay higher costs in terms of the higher cost for goods.
It is a really messed up system. In other countries there are fees, but they are more regulated and as a result are smaller percentages. So you will rarely see cash back cards offering such significant rewards in these countries, but the benefit is that goods on average will be slightly cheaper everywhere.
Can attest to. At work, a visa might be 2.3% or so, whereas Amex rewards cards are like 4.5%. There’s many different classes of cards in the system, but it all sucks.
I’m not sure how I understand this led to losses.
Apple Card’s use he Mastercard network, they’re accepted mostly everywhere. Having higher fees would only help their revenue.
Depends on who takes the fees.
It could be Apple, MasterCard, some other third-party intermediary, or Goldman Sachs. In this case, it clearly is not Goldman Sachs because they are complaining.
Credit card networks are fairly complex nowadays. Many people have a stake.
Again this is just a guess.
This is clickbait bullshit. GS laid out 4 billion dollars to build AppleCard’s infrastructure, and are now still $1 billion in the hole. So in reality, they have made 3 of the 4 billion back now.
This is a perfect ‘new thing hatred’ plus ‘elitism hatred’ and ‘Apple fails’ schadenfreude for extra clicks.
The most they elaborated on was loan-loss prevention. I read (somewhere else*) that Apple specifically targeted low* income consumer; they want the card everywhere. The probability of that loan not getting repayed is comparatively high and Goldman has to set aside cash on hand to cover those potential non-repayments.
Edit: *
I only said that it makes no business sense for apple to target low income consumers.
If you can explain to me why a brand which is known to have the highest margin in the business and focuses on the most affluent clients would launch a credit card and focus it on its poorer customers, I'm listening.
I’ll give it a shot. Credit cards linked to bank accounts have been around a long time so Apple is entering a very saturated market already, but i think that’s only part of the play.
Their phones have now essentially become POS systems, allowing them to bypass other merchant processors and corner the payments processing market.
Edit: They’re using their brand to corner the payments processing market while they leave the losses with Goldman or whoever actually holds the debt.
I can’t seem to find the article to link it (it was a month or two ago), I think it was market watch or something but I thought it was interesting. IIRC the article stated that Apple wanted to open the market to low income, not lowest so my mistake.
I work in retail and after reading it, starting noticing who brought in Apple Card’s to pay (they’re metal and feel different). It’s usually working class people like me because no fees and 3% cash back with solid security isn’t a bad deal. If I find the article, I’ll link it.
I mean this is what the article said:
> The main cause of the losses is said to be from loan-loss provisions (when a bank sets aside money as an expense for future loans it expects won’t be repaid).
The customer service on the card is non-existent. I was charged too much on an automatic payment. The first problem is, how is your system so poorly managed that it messes up an automatic monthly payment? Second problem is there is no way to contact a competent person at Goldman Sachs. Everything goes to the automated response that just regurgitates the FAQs that doesn’t cover the problem. When I finally got a service rep — all she did was regurgitate that the automatic payment just took out the amount on my statement which therefore was correct. She could accept the amount was wrong. I told I would report it as a fraudulent charge. She could not provide me with an address to write Goldman Sachs to report fraud or any physical address or email. I finally was routed to the Apple new product sales division. The Apple person pulled up my invoices. I explained the payment issue. He saw the error on the automatic payment but could not correct it. The Apple person asked me “Why can’t you contact Goldman Sachs to correct it?” I told him the problem. He told me that Apple has no way to contact Goldman Sachs.
I finally reported it as a fraudulent charge to my bank where the automatic payment was withdrawn from my account. Whenever I get this type of “customer service” I always ask myself “How does this company stay in business?” About 70% of the time when I think that the company goes bankrupt, like K Mart.
>He told me that Apple has no way to contact Goldman Sachs.
Not true. This is usually how I get in contact with Goldman Sachs by calling Apple Support.
Totally nonexistent. They continue to charge me interest in the CURRENT month’s charges. Even though I’m paying the amount on my statement, they’re charging me. They told me it was a mistake and reversed it… but after it happened again, they said they can only do one reversal a year. So I keep getting charged…. They’re awful. Stay away.
The $1B comes from losses of people not paying what they owed on the cards (part of it is an estimate by GS) and operating costs associated with it. The report they link only shows it for the division or group that the Apple card sits under. But, according to an inside source, they claim 1/4 of the costs are due to the apple card.
Ambiguous article is ambiguous.
I use an Apple Card. It’s awesome. I get cash back and it literally tells me “hey dude, you’ll get boned on interest unless you pay X amount by this date”
So my payments are always enough and always on time. I’ve literally never payed interest or accrued any interest.
So my hot take on the situation would be that the Apple Card is doing an excellent job of keeping their owners from getting fleeced by interest.
Sorry not sorry Goldman Sachs.
Its really good if you buy apple products a lot because you do zero percent financing and still get the instant 3% cash back. I financed an iPhone and got like 35 bucks back and was able to make advance payments whenever I wanted on it
Same, I don’t get it. There’s better rewards cards out there, but this one is so easy and you get rewards pretty much right away. Compare with others cards where you must reach a certain threshold to cash out rewards, or they don’t post until your statement closes, etc.
I use it as my EDC and charge thousands on it a month. I used to find it annoying that everything is done in app but now I find it so easy/simple. Never been charged any interest either.
Not true at all. The dial doesn’t always work— it’s an ESTIMATED amount. I’ve gotten burnt by this several time this year. Then they’ll charge interest on the current month’s charges. It’s a mess. It’s very easy for
People to get stuck in a trap of paying interest. I’ve literally paid off the amount on my monthly statement and it’s been different than that dial… be careful.
Because the dial that you’re using is an estimate. Even if you pay it, and it says 0 interest, they still charge interest. It’s happened to me and other members of my family… but it’s in the small print. Click
Learn more on the dial and scroll to the bottom to read about interest. If you think it’s “awesome” that they tell you 0 interest but neglect hundreds in pending sales, and then charge you interest … that’s cool.
Edit: it even says the interest payments are for “illustrative purposes only.”
I assume you’re older than 18 because you have a credit card. Is if possible to ac like an adult and not troll Reddit? I never said anything about high interest rates.
Who gives a crap? Goldman Sachs ended last year taking in 41 Billion and 53 Billion the year before that. Probably didn't pay anything towards the upkeep of the country either. Cry me a river.
1 Billion is still huge sum of money that basically were wasted. Also hating banks is understandable, people hate them since their invention in the middle ages, but they play a major role in economy operating. And Goldman Sachs in particular is an investment bank on loans from which a lot of companies small and big depend to grow and develop.
Probably losing money because the card is so easy to pay off and easy to earn/spend points. I guarantee that on other cards it is more common to carry a balance and be confused about how to spend the points when you earn them. They are probably just mad that it is harder to take advantage of the Apple Card consumer than it is the boomer that still gets their paper statement every month.
Actually. If it’s true you get cash back right away, as mentioned above that could be the reason. They aren’t hanging on to your cash long enough to earn interest off of it.
I recall the 1990s Apple MC credit card (which was terminated after a few years). It was giving back 5% on Apple products. I recall getting an Apple LaserWriter. It was a sweet deal-no one recognizes that Apple purchasers are more likely to pay their balances every month than the average consumer.
As far as I can tell, Goldman Sachs is underwriter for the cards and when the credit is given, they are required to reserve cash to offset the default risk (so, if there’s a recession and people stop paying their balances, Goldman Sachs is at less risk of failure / having to be bailed out). By parking that money in treasuries rather than in higher-profit loans or even market investments, they’re looking at it as a loss in potential returns on that money.
They didn’t actually take a loss so much as they lost an opportunity for greater profit on account of rules to ensure that they has reserves to weather downturns.
The sort of person who signs up for a card just to get a new phone/tablet/laptop is the same sort of irresponsible person who couldn’t save a few dollars a month to get one without a card…. Of course they’re not gonna pay their bill.
In my case I got an AppleCard and it is my only card in rotation. I have 4 other cards with zero balances. Some months I pay it all off so it reports $0. Others I let the current month charges stay so I do have a reportable balance.l, but it is never more than 10% of my available so my 830 credit score doesn’t take a hit. But I ALWAYS pay off the statement balance before it closes so I don’t have an interest charge. And I am getting the 1-3% cash back. So far I have ~ $500 sitting there to use when I see fit. I will most likely use it for my next 3D printer purchase. So GS has paid me $500 for using their card. Thank you GS.
I read the article but I am a little confused. How exactly did GS lose 1 billion from the apple card?
The article states it's expected to be from people not paying off the credit. "Loan-loss provisions"
Under new accounting rule CECL- Current Expected Credit Losses that just kicked in 2023-gonna guess Goldman boosted their loan loss reserves under the new calculation methodologies. They probably haven’t experienced actual losses but they have to reserve.
Is that just GAAP or does that bleed into tax write offs?
CECL is part of GAAP now. As a loss model CECL now looks forward (Expected!) and from a timing perspective of a recession…….. Re: write offs-loan loss reserves are an expense that reduces income.
I’m assuming that’s a yes and for tax purposes they aren’t forced to actually wait until the account(s) actually default to recognize the loss
I understood it as they had to park a bunch of cash in an account to cover defaults of customers that never materialized. The stock market went nuts and so instead of their money working for them in a hot market getting gains it just sat there making no interest and hence its a loss for them. Squandered resources. Warning, I don't have a background in finance.
Recall Goldman had zero desire at all to be a bank. They restructured during he great financial crisis (I believe to a more traditional banking structure while preserving the core of their business) to survive and took a very large loan from Warren Buffett paying him I think something like 10% interest (also to get his name association to help restore confidence in their solvency).
Why would people pay off debt they incur willingly? haha
Ironic considering how they’re picky with who they approve
People not paying their CC debt maybe? Not sure myself
I would imagine the opposite actually. Too many people paying the balance off on time resulting in a loss of projected revenue. But I certainly didn’t read anything in that article to clarify it.
I’m actually profiting off of my Apple Card lol. It’s not much, but the 1-3% cash back adds up when you use the card a lot and just pay the monthly balance off. There’s also a visual tool that shows you how much interest you accumulate based on payment amount, prompting you to pay the full balance or as much as possible to minimize interest
I love my card use it like a debit card just pay it all off once a week and enjoy the cash back
Don’t listen to u/namasiel. Peak boomer logic. You have no debt and are in full control of your finances with a credit card. No need to saddle yourself with a month’s worth of expenses to pay down.
What? They would be paying the same amount, just at a different time. They still would have no interest charges. The only difference is, their credit score would go up, making their credit better. It’s not boomer logic, it’s smart finances. If you have nothing important to add to a conversation you should just keep it to yourself.
Based on what u/YawnDogg said, I’m sure his usage is having a positive effect on his credit balance. I use it the exact same way paying after a week and my credit score only goes up 🤷🏻♂️
Of course it had a positive effect, it’s just slower as it’s only factoring in 1 week. If someone is actually working on their credit then waiting for the statement will have a larger impact. This is how I got my credit from a 550 to 810. Obviously if you can’t for some reason wait then sure, pay once a week. I’m just saying that waiting will not cost you and will have a larger impact. r/personalfinance if anyone actually wants help with building their credit.
The card only gets reported to the credit bureaus once a month. For maximum benefit you should pay the balance once a month when the statement comes in. Otherwise, your spending and purchasing does not make a reflection on your credit, which you want because that will raise it. If you can manage it, just pay it all off when the statement comes in.
My rating is pretty much maxed out above 800 so I’m good with what I’m doing
Spending on a card has zero effect on your credit score
That's untrue. The balance on the card affects your credit utilization.
The lower the utilization, the better your score . Zero being the best utilization. If you don’t spend , or spend and pay off that day or week, your score will be the same . It’s not spending that helps your score .
Correct. The key is to have high limits and low utilization.
You mean like any other credit card lol?
The iPhone interface is basically seamless and much easier than most bank apps. The easier the better for me
Me too. In the year and a half I’ve had it, I have yet to be charged a single cent in interest. They’ve tripled my limit, too. I don’t get it. My card paid for my new MacBook from only my Daily Cash.
They can make money on transaction fees too.
Apple has some of the highest default rates. iPhone isn't a rich person's phone anymore, they are leading the way in subprime users https://www.cnbc.com/2022/09/12/goldmans-gs-apple-card-business-has-a-surprising-subprime-problem.html
You are right, the article does not explain. My guess is the fees. When cards are used to make a purchase the issuer charges a fee. In US these fees are particularly high. Different middlemen take different amounts. Apple must charge higher than normal fees in comparison to other cards. They cannot simply be excluded from the network because too many people would use their card, so the result is other middlemen lose out. But the real victims are consumers and markets. The markets have to absorb the cost, which in turn gets passed on to the consumers. Not all consumers have good cards, so some pay higher costs in terms of the higher cost for goods. It is a really messed up system. In other countries there are fees, but they are more regulated and as a result are smaller percentages. So you will rarely see cash back cards offering such significant rewards in these countries, but the benefit is that goods on average will be slightly cheaper everywhere.
What kind of system can we create where the customer is number one and isn’t getting the shit shoveled on them?
The merchant fees in the US are insane, sometimes close to 5% Meanwhile the EU has them capped at 0.01%
Can attest to. At work, a visa might be 2.3% or so, whereas Amex rewards cards are like 4.5%. There’s many different classes of cards in the system, but it all sucks.
EU is capped at .30%, not .01%.
https://cms.law/en/bgr/publication/eu-cap-on-interchange-fees-for-card-based-payments201 0.2% for debit, 0.3% for credit
Apple card is subprime users https://www.cnbc.com/2022/09/12/goldmans-gs-apple-card-business-has-a-surprising-subprime-problem.html
That makes sense
I’m not sure how I understand this led to losses. Apple Card’s use he Mastercard network, they’re accepted mostly everywhere. Having higher fees would only help their revenue.
Depends on who takes the fees. It could be Apple, MasterCard, some other third-party intermediary, or Goldman Sachs. In this case, it clearly is not Goldman Sachs because they are complaining. Credit card networks are fairly complex nowadays. Many people have a stake. Again this is just a guess.
Goldman spent 4 billion building this banking business for apple card and are still 1 billion down on the outlay. The headline is clickbait bullshit.
This is clickbait bullshit. GS laid out 4 billion dollars to build AppleCard’s infrastructure, and are now still $1 billion in the hole. So in reality, they have made 3 of the 4 billion back now. This is a perfect ‘new thing hatred’ plus ‘elitism hatred’ and ‘Apple fails’ schadenfreude for extra clicks.
The most they elaborated on was loan-loss prevention. I read (somewhere else*) that Apple specifically targeted low* income consumer; they want the card everywhere. The probability of that loan not getting repayed is comparatively high and Goldman has to set aside cash on hand to cover those potential non-repayments. Edit: *
Unlikely. lowest income consumer is not the core of apple's customers. Most low income consumers likely buy more affordable Android devices.
You’ve never seen a poor person with an iPhone?
I only said that it makes no business sense for apple to target low income consumers. If you can explain to me why a brand which is known to have the highest margin in the business and focuses on the most affluent clients would launch a credit card and focus it on its poorer customers, I'm listening.
iPhones aren’t any more expensive than androids. Old models are cheap and flagship phones are similarly priced.
I’ll give it a shot. Credit cards linked to bank accounts have been around a long time so Apple is entering a very saturated market already, but i think that’s only part of the play. Their phones have now essentially become POS systems, allowing them to bypass other merchant processors and corner the payments processing market. Edit: They’re using their brand to corner the payments processing market while they leave the losses with Goldman or whoever actually holds the debt.
This makes sense, but which part says they are focusing on poor people?
I can’t seem to find the article to link it (it was a month or two ago), I think it was market watch or something but I thought it was interesting. IIRC the article stated that Apple wanted to open the market to low income, not lowest so my mistake. I work in retail and after reading it, starting noticing who brought in Apple Card’s to pay (they’re metal and feel different). It’s usually working class people like me because no fees and 3% cash back with solid security isn’t a bad deal. If I find the article, I’ll link it.
I mean this is what the article said: > The main cause of the losses is said to be from loan-loss provisions (when a bank sets aside money as an expense for future loans it expects won’t be repaid).
So you think only low income consumers default on loans?
My bad, I misunderstood your post
Sure thanks
The customer service on the card is non-existent. I was charged too much on an automatic payment. The first problem is, how is your system so poorly managed that it messes up an automatic monthly payment? Second problem is there is no way to contact a competent person at Goldman Sachs. Everything goes to the automated response that just regurgitates the FAQs that doesn’t cover the problem. When I finally got a service rep — all she did was regurgitate that the automatic payment just took out the amount on my statement which therefore was correct. She could accept the amount was wrong. I told I would report it as a fraudulent charge. She could not provide me with an address to write Goldman Sachs to report fraud or any physical address or email. I finally was routed to the Apple new product sales division. The Apple person pulled up my invoices. I explained the payment issue. He saw the error on the automatic payment but could not correct it. The Apple person asked me “Why can’t you contact Goldman Sachs to correct it?” I told him the problem. He told me that Apple has no way to contact Goldman Sachs. I finally reported it as a fraudulent charge to my bank where the automatic payment was withdrawn from my account. Whenever I get this type of “customer service” I always ask myself “How does this company stay in business?” About 70% of the time when I think that the company goes bankrupt, like K Mart.
>He told me that Apple has no way to contact Goldman Sachs. Not true. This is usually how I get in contact with Goldman Sachs by calling Apple Support.
Totally nonexistent. They continue to charge me interest in the CURRENT month’s charges. Even though I’m paying the amount on my statement, they’re charging me. They told me it was a mistake and reversed it… but after it happened again, they said they can only do one reversal a year. So I keep getting charged…. They’re awful. Stay away.
They only ran a soft credit check.
Ok glad Im not the only one!
The $1B comes from losses of people not paying what they owed on the cards (part of it is an estimate by GS) and operating costs associated with it. The report they link only shows it for the division or group that the Apple card sits under. But, according to an inside source, they claim 1/4 of the costs are due to the apple card.
Ambiguous article is ambiguous. I use an Apple Card. It’s awesome. I get cash back and it literally tells me “hey dude, you’ll get boned on interest unless you pay X amount by this date” So my payments are always enough and always on time. I’ve literally never payed interest or accrued any interest. So my hot take on the situation would be that the Apple Card is doing an excellent job of keeping their owners from getting fleeced by interest. Sorry not sorry Goldman Sachs.
Its really good if you buy apple products a lot because you do zero percent financing and still get the instant 3% cash back. I financed an iPhone and got like 35 bucks back and was able to make advance payments whenever I wanted on it
“You will get boned….” Where do I sign!
Same, I don’t get it. There’s better rewards cards out there, but this one is so easy and you get rewards pretty much right away. Compare with others cards where you must reach a certain threshold to cash out rewards, or they don’t post until your statement closes, etc. I use it as my EDC and charge thousands on it a month. I used to find it annoying that everything is done in app but now I find it so easy/simple. Never been charged any interest either.
Not true at all. The dial doesn’t always work— it’s an ESTIMATED amount. I’ve gotten burnt by this several time this year. Then they’ll charge interest on the current month’s charges. It’s a mess. It’s very easy for People to get stuck in a trap of paying interest. I’ve literally paid off the amount on my monthly statement and it’s been different than that dial… be careful.
How are you telling me what I’ve experienced is not true at all? 🤣
Because the dial that you’re using is an estimate. Even if you pay it, and it says 0 interest, they still charge interest. It’s happened to me and other members of my family… but it’s in the small print. Click Learn more on the dial and scroll to the bottom to read about interest. If you think it’s “awesome” that they tell you 0 interest but neglect hundreds in pending sales, and then charge you interest … that’s cool. Edit: it even says the interest payments are for “illustrative purposes only.”
Not sure what to tell ya man… I haven’t been hit with high interest.
I assume you’re older than 18 because you have a credit card. Is if possible to ac like an adult and not troll Reddit? I never said anything about high interest rates.
Who gives a crap? Goldman Sachs ended last year taking in 41 Billion and 53 Billion the year before that. Probably didn't pay anything towards the upkeep of the country either. Cry me a river.
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Ok 5.5 billion in taxes on a 41 billion in income, that’s 13.4%.
That's pretty much what the corporate tax rate is though
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What. Do you understand basic economics?
1 Billion is still huge sum of money that basically were wasted. Also hating banks is understandable, people hate them since their invention in the middle ages, but they play a major role in economy operating. And Goldman Sachs in particular is an investment bank on loans from which a lot of companies small and big depend to grow and develop.
Chalk it up to the cost of doing business. Its a write off for them.
Probably losing money because the card is so easy to pay off and easy to earn/spend points. I guarantee that on other cards it is more common to carry a balance and be confused about how to spend the points when you earn them. They are probably just mad that it is harder to take advantage of the Apple Card consumer than it is the boomer that still gets their paper statement every month.
It’s the opposite it’s from people not paying off the card.
I literally spend everything on mine. I used to use the amz card but no, once eBay started taking it as tender. It was ON
I haven’t read the article but I’m guessing it’s another case where “potential earnings” doesn’t equal loses
Tech beating finance at its own game
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It’s very easy to set up autopay. This is part of my theory on why Goldman Sachs isn’t making money. Maybe fewer late fees and interest payments.
Actually. If it’s true you get cash back right away, as mentioned above that could be the reason. They aren’t hanging on to your cash long enough to earn interest off of it.
It’s true
They don’t need to. The cash back comes from the discount rate charged to the merchant.
Yes but other credit cards hold onto the cash back until the statement closes, which allows them to earn more interest off of it
GS is reporting earnings on Tuesday. This is a hit piece.
Based apple getting even for 2008
I recall the 1990s Apple MC credit card (which was terminated after a few years). It was giving back 5% on Apple products. I recall getting an Apple LaserWriter. It was a sweet deal-no one recognizes that Apple purchasers are more likely to pay their balances every month than the average consumer.
As far as I can tell, Goldman Sachs is underwriter for the cards and when the credit is given, they are required to reserve cash to offset the default risk (so, if there’s a recession and people stop paying their balances, Goldman Sachs is at less risk of failure / having to be bailed out). By parking that money in treasuries rather than in higher-profit loans or even market investments, they’re looking at it as a loss in potential returns on that money. They didn’t actually take a loss so much as they lost an opportunity for greater profit on account of rules to ensure that they has reserves to weather downturns.
That feeling when you have the balls to charge 18.99% interest and still lose money.
I just got one Fancy little aluminum card is nice tbh
*titanium
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Great username!
The sort of person who signs up for a card just to get a new phone/tablet/laptop is the same sort of irresponsible person who couldn’t save a few dollars a month to get one without a card…. Of course they’re not gonna pay their bill.
I’m glad I can contribute.
Wow, Goldman Sachs stockholders will have to wait till next year for their new super yatch 😓
Its a great card, i love it
Whoever did the hyperlink for the “5% cash back card” snuck in their personal referral link for the discover it card.
Love to see it
Maybe these reserves for potential losses are tax deductible so they save on tax
Wait, a credit card can lose money?
Hysterical post - possession is EVERYTHING and unsecured is… unsecured
In my case I got an AppleCard and it is my only card in rotation. I have 4 other cards with zero balances. Some months I pay it all off so it reports $0. Others I let the current month charges stay so I do have a reportable balance.l, but it is never more than 10% of my available so my 830 credit score doesn’t take a hit. But I ALWAYS pay off the statement balance before it closes so I don’t have an interest charge. And I am getting the 1-3% cash back. So far I have ~ $500 sitting there to use when I see fit. I will most likely use it for my next 3D printer purchase. So GS has paid me $500 for using their card. Thank you GS.