Tim Cook Was Denied Getting an Apple Card -- Wait, What?

One of the reasons it's so important to have a clean credit history and a high credit score is that doing so makes it more likely that you'll be approved for a credit card when you apply for one. Similarly, having a high net worth and earning a higher salary generally makes you a more prime credit card candidate.

Or does it?

With a net worth of $1.9 billion, Apple CEO Tim Cook seems like the sort of person who would have no trouble qualifying for a credit card -- especially one from the company he runs. But apparently, Cook was initially denied an Apple Card for one very big reason.

When you're commonly the victim of fraud

Prior to the official launch of the Apple Card in August of 2019, Cook applied for a card of his own during a test run. And shockingly, he was denied.

It wasn't because of a poor credit score or a lack of money, though. Rather, financial giants like Cook are commonly targeted for fraud. Criminals are known to try to impersonate people like Cook and apply for credit on their behalf.

As such, credit bureaus commonly flag the credit reports of people in Cook's shoes. And that actually makes it harder for them to get access to personal credit, should they need it.

The good news is that while Cook was initially denied an Apple Card, Goldman Sachs, Apple's underwriting partner, made the decision to grant him a card despite his flagged credit report. But it just goes to show that even billionaires aren't guaranteed credit when they want it. And if a billionaire might struggle to get access to credit, so might you.

The importance of checking your credit report

There may not be much that people like Cook can do to avoid having their credit reports flagged. And so people in his shoes may need to jump through certain hoops to get credit card approval, even though they're more than qualified.

But if you want to help ensure that you're able to get access to credit when you need it, then it's a good idea to check your credit report every four months or so and make sure there are no surprises. Sometimes, the credit bureaus that put together these reports make mistakes or receive incorrect information. But if those errors work against you, it could prevent you from getting a personal loan or credit card when you want one.

Let's say your credit report shows a delinquent debt for $800 that was never yours to begin with. Transposing two digits in a Social Security number could result in a debt like that showing up on your credit report instead of the report of the person who racked it up. And you may not have any clue that that debt is listed on your credit history unless you check your report to see what information it contains.

The good news is that right now, you can actually access a free copy of your credit report every week through the end of 2023. Usually, you're limited to one free copy per year from each of the three major reporting bureaus -- Experian, Equifax, and TransUnion.

But for the most part, checking your credit report once every four months is sufficient. And it's something you should make a point to do so you don't end up in a situation like Cook was in where you can't get a credit card you're convinced you should be able to qualify for.