While Apple Card's early credit loan performance suggests that it's at least somewhat popular, its total is a far cry from those of top banks, though those firms have large portfolios of cards to consider. For example, Bank of America's average credit card outstanding balances for its US consumer credit card business was $94.
Bringing in allegedly subprime users could give Apple Card a user base that heavily relies on it, growing its loan balance rapidly. If many of Apple Card's users are subprime — subprime is typically as consumers with FICO scores below 620 — and have difficulty getting approved for other credit cards, they may make Apple Card their top payment method, boosting Goldman's loan balance and Apple Card's usage in turn.
Apple Card is facing off against a number of established consumer cards, but by approving subprime users it can build its cardholder base without going head-to-head with competitors. Cards like the
What part of this is good for consumers?