Goldman Sacs Dipping into Subprime Lending with Apple Card

  • Goldman, which is in charge of deciding who gets the Apple Card, is accepting some applications from users with less-than-stellar credit scores, according to people with knowledge of the matter.
  • Apple wanted its bank partner to create a technology platform to approve as many of its 100 million-plus iPhone users in the U.S. as possible, within the bounds of regulations and responsible lending, according to the people.
  • “I was absolutely shocked I got it,” said one early user with a FICO score of 620.

 

 

Goldman Sachs is casting a wide net for customers of its new credit card with Apple, approving some subprime borrowers for the product.

The bank, which is in charge of deciding who gets the Apple Card, is accepting some applications from users with less-than-stellar credit scores, according to people with knowledge of the matter. Goldman began to make the card available to some Apple customers this week ahead of a broader rollout later this month.

From the start, Apple wanted its bank partner to create a technology platform that would approve as many of its 100 million-plus U.S. iPhone users as possible, within the bounds of regulations and responsible lending, according to the people. That’s in line with the tech giant’s desire to provide a good user experience for its customers.

For Goldman, a 150-year-old investment bank that counts corporations and the ultrawealthy as its clients, the move heightens the risks it faces launching a card during the latter stages of a decade-long U.S. expansion.

www.cnbc.com/2019/08/09/goldman-sachs-is-dipping-

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