Apple partnered with Goldman Sachs to issue a credit card and the bank has sole say on who gets accepted. In "somewhat of a surprise," Goldman Sachs is accepting customers with low and subprime credit scores, CNBC's banking reporter Hugh Son said on "Squawk Box" Friday morning.
However, it was likely clear and understood from the beginning Apple wants a financial partner who can take on as many of the 100 million iPhone users in the U.S.
Statistically speaking at least "some" iPhone users will have a less-than-ideal credit score. At least one consumer Son spoke with had a credit score of 620 when he applied for the card. His Apple-branded card will come with a credit line under $1,000 at an interest rate of 23.99%.
Why It's Important
Apple may have an objective of wanting to help American consumers lead a healthier financial life, Son said. If Goldman Sachs' doesn't share a similar vision then it will be cutting itself out of a segment of the American population, especially the younger generation millennial audience.
"Goldman Sachs is Goldman Sachs in name only now," Guy Adami said.
The main question Goldman Sachs investors will likely be asking moving forward is if a shift in the stock's valuation is warranted given its new exposure to the riskier credit card business.
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