Apple and Goldman Sachs are being picky about who they approve for Apple Card, the new credit card they launched in August.
"The approval rates early on have been lower," Goldman CEO David Solomon said on the bank's third-quarter earnings call, adding that the bank is favoring applicants with excellent credit scores.
Approval - Rates - Apple - Low-risk - Credit
"Keeping approval rates low suggests that at least initially Apple wants to focus on low-risk (higher credit score) customers, rather than catering to higher-risk customers," a Wharton associate professor told Markets Insider.
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Apple - Goldman - Sachs - Apple - Card
Apple and Goldman Sachs are being picky about who gets an Apple Card, the new credit card they launched in August.
"The approval rates early on have been lower," Goldman CEO David Solomon said on the bank's third-quarter earnings call. "That's a decision Goldman Sachs is making as the bank, but we're doing that in concert with Apple."
Pair - Side - FICO - Bands - Solomon
The pair are "skewing to the highest side of the FICO bands," Solomon continued, meaning they're mostly approving applicants with excellent credit scores.
"We are quite vigilant" about "not being negatively selected out of the box," he added. "Over time, we'll start to see better credits appear, the approval rates will go up."
Interest - Apple - Card - Apple - Goldman
Strong interest in Apple Card has allowed Apple and Goldman...
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