How the Citizens loan works to buy an iPhone

Technology is expensive and more when you want something high-end. Fortunately, there are ways to access a new device without leaving a zero balance in your bank account. For example, Apple offers a iPhone update program that allows its users acquire the latest version through financing. This plan also includes Apple Care + coverage. Normally, the financing is done through the consumer’s mobile operator. Here we will talk about the Citizens loan to buy your iPhone.

Now, if you want to extend your payments beyond what your operator offers, you still have an option and that is to request a personal loan with Citizens One (which is the commercial name of the Citizens Bank loan portfolio) to buy your iPhone. .

Yes indeed: Remember that Citizens One will run a credit check if you apply for a loan. Also, you will need a registered credit or debit card, which is what you’ll be asked to become a member of the iPhone upgrade program managed directly by Apple. Through this card, you can make all your monthly payments.

What is the iPhone update program?

Lets start by the beginning. Those who become members of the Apple-powered iPhone Upgrade Program can apply for financing for the full cost of the phone plus AppleCare+. This is formalized through a loan payable over 24 months subject to 0% APR.

If you are approved, you will be able to buy your phone directly from Apple and you will not have to finance it with your mobile operator. But, who is the intermediary of this financing? Citizens One.

iPhone Upgrade Schedule Considerations

Although everything sounds fantastic, and it can be, it is important that you have some pros and cons in mind before applying for this financing.


  • You can extend the term according to the cost. Without a trade-in, the latest top-of-the-line iPhone can cost more than $1,000 before taxes and certain fees. If you don’t have that money in hand and you still want it, the best thing you can do is extend the financing term to 24 months.
  • Or trade in your old phone. You can trade in your current iPhone for a new one to help offset the full cost of the phone and lower your monthly payments. But if you’re signing up for the first time, you should ask if your phone is eligible. Remember that not all devices qualify.
  • You will be backed by AppleCare +. AppleCare+ is an insurance policy that covers hardware repairs, software support, and two accidental damage claims. This will surely give you a lot of peace of mind.
  • The program works with most major mobile operators. If you have a monthly rate plan with Verizon, Sprint, T-Mobile, or AT&T, you can stay with your current plan or switch to another plan. Apple will connect your new iPhone for you.

So far all are benefits. But, of course, there are also certain factors that you will have to take care of.


  • You could end up paying interest. While buying an iPhone with a Citizens One loan is tempting because it’s advertised as having a 0% APR, that doesn’t necessarily mean you won’t pay interest. Keep in mind that you will have to make your monthly payments through a credit or debit card, which is the one that you will register in the iPhone upgrade program. If you use a debit card, no problem, but if you opt for a credit you may have to pay interest, unless you pay the full amount each month. Keep this in mind when you sign up. It may be preferable to do it with a debit card instead of a credit card.
  • Citizens One will check your credit. A credit check is required to apply for entry into the Apple Upgrade Program. If you don’t have the best credit score -or, at least, a good enough one- it is possible that your request will be rejected.
  • You need AppleCare + with no exceptions. To sign up, you’ll need to purchase the AppleCare + insurance policy. While you may like having this added protection, it could add to the overall cost of your phone.

Tip: Check that you are not paying for mobile protection insurance. After all, you don’t need two insurances for a single phone.

Can I update my iPhone whenever I want with Citizens?

Unfortunately, the answer is a resounding no.. You can’t update your iPhone whenever you want. There are certain requirements that you must meet before you are eligible for an upgrade, such as the following:

  • Have made at least 12 of the 24 monthly loan payments.
  • Have your Citizens One account in order and as stipulated in the terms and conditions.
  • Keep the AppleCare + plan with your financed phone.
  • Your iPhone is in good physical and operating condition and meets Apple standards.
  • Any repair or replacement of the financed phone was performed at an Apple Store, through an Authorized Service Provider, or through AppleCare + coverage.

Of course, it is important that you know that there is an early update option available. If you wish, after you have made the first six payments with Citizens One, you can accelerate the schedule and deposit the equivalent of the 12 installments. If you get to this point and meet the other conditions, you can renew your iPhone almost instantly.

In this case, you will receive a new iPhone and your loan plan will be updated with the new amounts. Of course, it will have the same duration as the previous one, which is 24 months.. The only bad thing is that you would be entering a practically endless cycle in which you will always have to pay a monthly fee for your phone.

Should I take out a Citizens loan to buy my iPhone?

If having the newest iPhone is very important to you, whether for work or personal use, and you don’t have enough money to pay for it up front or in cash, it might not be a bad idea to take out a loan from Citizens for buy an iphone Think that, if you use your debit card, you will have a financing of 24 months at 0% APR. What’s more, your old phone could serve as part of payment, thus lowering your monthly fees.

But if you’re happy with your current phone, want to avoid a new expense in your payment schedule, or don’t like the idea of ​​paying for your phone until the end of time, you may want to avoid the iPhone upgrade program because, sure, not for you.

take stock

What we can tell you is that before applying for the iPhone upgrade program offered by Apple, you should fully investigate it! Consider how badly you want or need that new iPhone that has just been released, as this will help you determine which is the right decision for you.

If you decide to become a member of the program, make sure you can pay the monthly installments subject to the Citizens loan. This will help take the headache out of you and keep your credit score intact. You think it wouldn’t make sense to lose a stellar credit score just for a new phone, would you?

If you decide to become the new member of this iPhone program, you can request it through the modality that you prefer: online, through the Apple Store app, or at an Apple Store.

Keep reading: