Apple Upgrade Frequently Asked Questions
Answers separate public Apple rules from amounts that only your personal Klarna lease can establish.
Is Apple Upgrade a lease or a loan?
It is a consumer lease provided by Klarna. Klarna owns the device during the lease. It is not the former Citizens One iPhone purchase loan.
Do I own the device at the end of the lease?
No. Completing the initial term does not transfer ownership. You can return the device, upgrade through a new lease, or pay the purchase option to keep it.
How is the purchase option calculated?
Apple describes it as the list price at signing minus credited lease payments, any down payment, and remaining trade-in or discount credits. Applicable tax and assessed damage charges may be added. Your Klarna quote controls.
Will leasing and buying out cost more than list price?
It can, particularly after tax, optional coverage and fees. Enter your official payment schedule and purchase option into the calculator, then compare the result with the same device’s after-tax purchase price.
Can I upgrade before the lease ends?
Yes, but it is not a free early upgrade. You must satisfy every unpaid installment in the initial term, including applicable tax, return the device, and separately qualify for a new lease.
Can I cancel and return the device early?
Apple allows early termination, but the remaining initial-term installments plus any assessed damage fee are due. The device must be returned within the stated return period.
What happens if I take no action at lease end?
Apple describes a limited six-month month-to-month decision period. Payments continue and can change if an initial trade-in credit expires. At the end of that period, Klarna may charge the purchase option under the agreement.
Does Apple Upgrade include AppleCare?
No. AppleCare is a separate optional Apple product and charge. Add it separately when comparing totals.
What if the device is damaged, lost or stolen?
A condition assessment can result in a damage or service fee. Loss or theft does not automatically remove the lease obligation. Coverage and your individual agreement determine the next steps.
Does Apple Upgrade require a credit check?
Apple states that the application uses a soft credit inquiry that does not affect the applicant’s credit score. Approval is still required. This statement does not promise how later delinquency or default may be handled.
Which carriers are supported for a leased iPhone?
Current checkout requires AT&T, T-Mobile or Verizon. Prepaid plans are not supported. Carrier service is billed separately.
Is an Apple Upgrade iPhone unlocked?
Apple states that leased iPhones remain unlocked, although an eligible carrier selection is still required during checkout.
Can I use a prepaid carrier or MVNO?
Current Apple guidance says prepaid plans are not eligible for the leased iPhone checkout. Confirm any specific carrier arrangement with Apple before applying.
How does trade-in credit affect payments?
A trade-in is available when first joining. Klarna applies the credit across the initial term. It does not continue into the post-term extension, and failure to return the trade-in at its estimated condition can change payments.
Which products and terms are eligible?
Eligible iPhone and Apple Watch products can show 12- or 24-month options. Eligible Mac and iPad products can show 24- or 36-month options. Not every device supports every term.
Is Apple Upgrade available outside the United States?
The current consumer program is for eligible U.S. residents and excludes U.S. territories. Other countries may have different Apple payment or upgrade offers.
What happens after a missed payment?
Apple’s public program page does not provide a complete universal delinquency and credit-reporting policy. Check your individual Klarna agreement and contact Klarna promptly.
Are taxes included in the advertised monthly price?
No. Apple’s advertised examples exclude tax. Lease taxation varies by location and transaction, so use the tax amounts shown in Apple checkout and your Klarna schedule.