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Business News/ Companies / People/ Apple CEO Tim Cook with net worth of around $2 billion was denied credit card by his own company. Here's why

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Apple CEO Tim Cook with net worth of around $2 billion was denied credit card by his own company. Here's why

1 min read 28 Jul 2023, 06:31 AM IST Join us

Edited By Aman Gupta

Apple CEO Tim Cook was reportedly denied access to the Apple Credit card during testing due to concerns of impersonation, despite his wealth and credit score not being the issue.

Tim Cook, chief executive officer of Apple Inc., during an event with senior officials and chief executive officers in the East Room of the White House in Washington, DC, US, on Thursday, June 22, 2023. The meeting is expected to cover innovation, investment and manufacturing in technology sectors including artificial intelligence, semiconductors, and space, according to the White House. Photographer: Chris Kleponis/CNP/Bloomberg (Bloomberg) — Tim Cook, chief executive officer of Apple Inc., during an event with senior officials and chief executive officers in the East Room of the White House in Washington, DC, US, on Thursday, June 22, 2023. The meeting is expected to cover innovation, investment and manufacturing in technology sectors including artificial intelligence, semiconductors, and space, according to the White House. Photographer: Chris Kleponis/CNP/Bloomberg **(Bloomberg)**

In a bizarre turn of events Apple CEO Tim Cook was denied access to his own company's card during the testing phase of the project in August 2019. Tim Cook has a net worth of around $1.9 billion and could earn a compensation of around $50 million but still couldn't get accepted for a credit card by Apple.

According to a report published in The Information quoting four sources, Tim Cook had been denied the Apple Credit made in collaboration with Goldman Sachs. Cook's enormous wealth and his public profile has often made him a target of impersonation leading to the account being flagged by the credit bureaus.

The red flags by the credit bureaus led to the Goldman Sachs' underwriting system rejecting his application for the sleek metal card. However, given the personal clout of the Apple chief executive, Goldman Sacks eventually had to make a one-off exception and grant Cook access to his company's credit cards.

Why are things turning sour between Apple and Goldman Sachs?

Apple and Goldman Sachs had launched the Apple Card in October 2019, at a time of lower interest rates and optimistic macroeconomic forecasts. The Wall Street banking giant had also waved off some credit card fees, such as the interchange fees charged to merchants for accepting the credit card, the New York Post reported.

Several reports have claimed that Goldman Sachs is trying to get out of the deal with the Wall Street titan going to the extent of pawning off the venture on other companies like American Express. However, the American Express deal is unlikely to work as Apple's card transactions are processed through the Mastercard network, while the Tim Cook-led company also holds veto power over any attempts by Goldman Sachs to exit the joint venture.

According to a report in the Wall Street Journal, Apple, which began its journey into financial services by working with Goldman Sachs, is trying to generate more revenue from services. The division generated 20% of its revenue from services last year, up from 10% a decade earlier. The tech giant is also trying to lay the groundwork to be less dependent on its partners for financial services.