APPLE Card vs the Chase Sapphire/Freedom Duo

your invitation to get early access to
Apple Card you wanted to be one of the first to get Apple Card a new kind of
credit card created by Apple not a bank actually shouldn’t that be created by
Apple and a bank but we’re not gonna do that I think that we can do better by
maximizing our earn via the Sapphire Freedom duo for the sake of this video
I’m not even going to use my personal valuation of Ultimate Rewards which
currently stands at two point one nine cents per point instead I’ll undervalue
and claim they’re only worth one cent each this is the rate one receives if
one elects to convert points to cash or statement credits before talking chase
let’s run over the Apple Card basics we’ve got a current signup bonus of $0
which is pretty lame one will further earn 3% cashback on Apple purchases a
just announced 3% on uber two on all transactions made via Apple Pay and one
on everything else these earn categories lead us to a
question that friends and family members always ask when they hear I play the
points in miles game so what kind of credit card should I get my answer to
this is always the same good question give me a percentage
breakdown of your previous full year’s spend by category and whether or not you
anticipate any spending pattern changes they usually look confused
I look smug it’s a bad time all around the point being there is no universal
answer it’s kind of like asking what kind of vehicle to get with no other
information do you have a family to haul do you need to haul things do you want
to wear a bag over your head for fear of being seen in your truck the point being
is that our personal requirements the decision as it pertains to the Apple
Card one person could claim the earn rate is great while another could claim
is terrible and they both be correct it just depends on your spend do you spend
$20,000 per year on Apple products if yes then this card makes sense do you
spend 20,000 a year on overseas travel if yes then the Sapphire Preferred is
the better option taking a look at the Apple Card’s terms and conditions and we
see some pretty standard stuff an APR of twelve point nine nine to twenty three
point nine nine percent a 28-day grace period and most excellently no fees I’m
assuming this includes foreign transaction ones but would like to see
that explicitly stated somewhere like everything Apple they’re going for
simplicity here it appears to be an Apple Wallet based virtual card first
and a titanium physical one second so it looks nice appear simple to use
and has a totally respectable earn rate not too bad representing Chase we’ve got
the Sapphire Preferred and we’ll be matching it to the Freedom Unlimited
before getting into the raw numbers let’s talk about why we picked these two
cards the Chase Sapphire Preferred many players have lost their points and miles
of virginity to this piece of plastic this card is included because it
provides one access to Chase’s outstanding Ultimate Rewards program and
provides a nice everyday bonus on travel and dining what’s more Chase’s
definition of travel is broad everything from Ubers trains airfare hotels it’s
all included and it’s a worldwide bonus category finally use of this card
overseas won’t trigger any obnoxious foreign transaction fees I chose the $95
Sapphire Preferred over the $450 Sapphire Reserve because I’m assuming
those looking at the fee-free Apple card have no interest in the premium credit
card market even though I could make a value case
for the more expensive option the chase Freedom Unlimited is used for everything
else it earns a flat 1.5 percent on all purchases now I get it
managing even two cards might come across as cumbersome especially for
those who value the Apple Card for its simplicity but it’s really not that hard
and once you learn the basics it becomes second nature the basic rules are if
we’re outside of the country or paying for travel or dining we’re using our
Sapphire Preferred for everything else we use our freedom unlimited learning
the points in miles game is a bit like when you’re first learning to drive a
car as someone who’s presumably been doing it for some time it’s probably all
muscle memory by now but when you were 15 or 16 there were a ton of things to
learn how to manipulate the clutch who has the right-of-way what do all the
signs mean what’s the proper signal distance but once it becomes part of
your daily routine you don’t think about it any longer and that’s really how the
points in miles game is played easy right
so like I’ve done before I want to show you guys some real-world numbers and
what kind of earning we can expect when using either option I’m going to use my
personal 2018 fully your spending patterns and apply those percentages to
a hypothetical twenty thousand dollars annually this time around it gets a
little tricky because I don’t have good data
surrounding Apple pay usage rates to fill in for this gap the number 65 comes
into play this is the percentage of US retailers which currently accept phone
based payments at least according to a January 2019 Apple press release
accordingly I’ll use that as the number of merchants who would have earned
apples cards two points per dollar had I really been trying to put this another
way we’re going to say that the Apple card earns one point six five cents per
dollar on everyday purchases with these assumptions in mind let’s look at the
results we have a gross urn of 330 2.26 cents on
the Apple card and 314 dollars to cents for the Chase Sapphire freedom duo so
for some people this may be enough to call it the new card from Apple beats
the duo from Chase when just looking at earn from every day spend however I
think it’s a bit more complicated I know I said earlier that I’d limit the value
of an ultimate reward to its cashback value just one cent but what what if we
were to get a little crazy and acknowledge the fact the chase allows
Sapphire Preferred card holders to redeem for 1.25 cents per point via the
Expedia power ultimate rewards travel portal our new earnings looks something
like this we’re still looking at three hundred thirty two dollars in value from
the Apple card and three hundred ninety two dollars from the chase duo because
there are so many valuables I created a little calculator which does a bit of
the work for you it’s available on my website it’s still a beta test so I
would appreciate any feedback link is below
I plan on rolling them out for future comparisons as well anywho you’ll be
able to input annual spend and adjust for any potential bonus purchasing
you’ll also be able to vary the value of an ultimate reward to whatever you think
is appropriate so yeah let me know what you think moving on from return on spend
let’s talk purchase protection the Apple card is lacking in both execution and
information here Apple’s website doesn’t mention the topic neither does the Terms
of Service the only data I could find it comes from
the cards payment processor Master Card it looks about as bare-bones as one
could imagine we’ve got some basic liability protection some ID theft
coverage a shop runner membership and some other dumb things like priceless
cities and golf that will most likely go unused overall a big disappointment
quite oppositely the Chase Sapphire freedom duo
has some of the best card benefits available ten thousand dollars per
person trip interruption coverage a primary rental car collision damage
waiver baggage delay insurance $500 per trip delay coverage $500 per claim
purchase protection and warranty extensions of one year in other words
when it comes to card provided peace of mind the Apple card doesn’t even feel
like it’s playing in the same league as the Chase Sapphire freedom duo now
before we start wrapping things up let’s look at net year one value the chase
setup is going to come with some annual fees but we’ll make up for that with
signup bonuses the Apple card has neither which I suppose is both good and
bad the Sapphire Preferred is currently offering 60,000 ultimate rewards for a
kind of high four thousand dollar minimum spend the chase freedom
unlimited is offering three points per dollar on the first twenty thousand
dollars and here we go we’ve got an intro bonus of zero dollars
on the Apple card and $600 from the Sapphire Preferred the year one return
on spend is the previously mentioned three hundred thirty two dollars on the
Apple card and five hundred sixty dollars on the duo
the latter’s increase is due to the freedom Unlimited’s year one three point
per dollar sign up bonus I’m assigning a value of $0 to the Apple carts purchase
protection or lack thereof and $50 to the sapphire duo it’s a bit arbitrary
but more than anything I wanted to just acknowledge how much better it is the
cost of the cards is next zero dollars for the Apple card and ninety five
dollars for the Sapphire Preferred okay dear one is a blowout the Chase Sapphire
freedom duo beats the Apple card by seven hundred eighty two dollars to be
honest this isn’t all unexpected that’s what signup bonuses will do they
massively skew year one net evaluations also keep in mind this is with an
undervalue of Ultimate Rewards I personally pegged them at two point
one nine cents per point at that valuation level instead of beating the
Apple card by seven hundred eighty two dollars
chase wins by two thousand one hundred sixty three this is like the major
leagues versus Little League it’s not even close
moving on to year two and things even out with intro bonus is gone and
ultimate rewards valued at one cent each the Apple card wins by sixty three
dollars so final thoughts I like the Apple card but it’s not for me it’s got
some great features from everything I read Apple is trying to make keeping
track of spending as easy as looking through some I messages for some there
might be a lot of value in this Apple also makes earnings available
immediately via daily cash I like that but feel it’s more of a novelty than a
decision altering feature furthermore I really like the fact that help is just
an SMS away I really wish chase would do that when it comes to second year
earnings and cash out valuations of ultimate rewards the Apple card does
very well beating the chase duo but to get to that point we had to drop the
value of chase points below what I believe they’re worth in the end the
Apple card versus the Chase Sapphire freedom duo is a bit like the old Mac
versus Windows to date you might get more for your money with the Microsoft
based platform but the Mac and its iOS integration sure makes life easy and
that’s exactly who I think the apple cart is great for people who just say
look I want a card that doesn’t screw me over
earnings wise and that I don’t even have to think about the points game does take
some work and for people like me who play it can be kind of fun but others
might have different priorities for me I’m sticking with Chase but I definitely
won’t be rolling my eyes at anyone breaking
they’re Apple card


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