Apple details Apple Card Family features and restrictions

article thumbnail

Apple on Thursday provided additional details about Apple Card Family, a new feature for the company's branded credit card that allows users to "co-own" an account alongside family members.

Detailed in a support document, Apple Card Family is available to one cardholder and one member of their Family Sharing group who is 18 or older. Touted as a rethinking of traditional credit cards, the new service enables both members of an account to share a credit line while simultaneously building credit.

A total of six people, including owners or co-owners, can be assigned to a particular Apple Card account. Participants must be 13 or older.

Co-owners share full responsibility for account balance and payments, and have their credit reported equally in their own name, Apple says. Once assigned to an account, a co-owner is eligible for Daily Cash back on purchases, which can range from 1% to 3%, depending on payment method and merchant.

Additionally, owners and co-owners can:

  • Add or remove participants and order a titanium Apple Card for participants who are 18 years or older
  • View participant activity and account co-owner activity
  • Set transaction limits for participants, lock a participant's ability to spend, and receive notifications on participants spending
  • Request a credit limit increase
  • Close the shared Apple Card account at any time, but are still responsible for paying any remaining balance

Participants have a limited set of account management options and, likewise, limited responsibility. They can spend up to an Apple Card's credit limit, but are not accountable for payments. Owners and co-owners can, however, set transaction limits. Participants are also able to view transaction histories and information, and those who are 18 or older can order a personal titanium Apple Card and opt-in to build credit by being reported on the account.

Apple explains credit reporting in a separate section of the support document.

Information about the Apple Card Family account, such as payment history and credit utilization, are reported to credit bureaus and shown in credit bureau reports for account owners and co-owners. This information may also be shown in credit bureau reports for a participant if they're being reported on the Apple Card Family account as an authorized user. Being credit reported can assist with building credit history for account co-owners and participants. Generally, accounts that have been established for a while, show consistent on-time payments, and have low balances (e.g. below 30% of the total credit limit), may result in a more positive credit impact.

Apple Card holders who want to use the new family feature need to set up Family Sharing or be part of a Family Sharing group. Using a device that has its region set to the U.S., owners can invite family members to an account in the Wallet app.

Apple Card Family is expected to arrive in May.