Today, along with updates to the iMac, iPad Pro, and more, Apple also announced the Apple Card family update designed to make it easier to share an Apple card with other people in your family and generate credit together.
Previously, all Apple cards were linked to a specific person or iPhone. HHowever, with Apple Card Family, users will be able to create a Family Sharing group so you can more easily track purchases, control spending habits, and even help others (especially younger ones) create and set up a credit history. Even parents can share their Apple card with children up to the age of 13, even offering individual spending limits that can be adjusted for each family member.
Apple says the inspiration behind Apple Card Family comes from the desire to help people build good financial habits, with Apple Pay vice president Jennifer Bailey claiming the company:
designed Apple Card Family because we saw the opportunity to reinvent how spouses, couples, and the people you trust the most share credit cards and generate credit together. There has been a lack of transparency and consumer understanding in how to calculate credit scores when there are two users on the same credit card. since the primary account holder gets the advantage of creating a solid credit history, while the other does not.
Apple says that with Apple Card Family, up to five people can share the same Apple Card, as long as everyone is part of the same Family Sharing plan. Anyone 18 years of age or older can be designated as a co-owner of the card, which will allow them to build their credit history. That said, it looks like everyone listed as the owner or co-owner will be able to see purchases made by other family members, so you may not use your Apple card for more sensitive purchases.
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Existing Apple card holders will also be able to combine their accounts with other owners of their family’s Apple card, which will result in a higher shared credit limit while maintaining the lowest interest rate on previous accounts.
However, one important thing to remember is that all Apple cardholders will share all late payments or negative credit history with anyone who has opted in.in the credit report for this account. This means that if something goes wrong, the credit score for everyone in the account can have some success.
On the plus side, Apple says that every day cash (which provides a 3% refund)) that is generated when shopping with an Apple card will be rewarded individually, so if you make a major purchase, your children or siblings will not be able to remove your bonuses.
With the implementation of family plans for virtually all of its services, Apple is not surprised to see Apple add a new family plan to the Apple card, and for younger people who are not used to managing a credit card, Apple Card Family could be a useful tool for establishing healthy financial habits for the future.
In the U.S., the Apple Card Family update is expected to be released sometime in May and will require users to update to the latest version of iOS (version 14.5), which will be available for download next week.