To allow customers to share the benefits of a single line of credit, Apple has introduced card sharing. The system would allow multiple customers to use the same Apple credit card, thus benefitting from one shared credit record.
This is the first time Apple has done something like this, but the move is not unprecedented. Apple has long focused on building a more equitable and flexible credit program. This is why they have a low-fee credit on its Apple Card along with no annual or late fees.
The program will also allow parents to have children over the age of 13 on the Card with them. This means that they would be able to track their children’s spending. This is a great way to get children learning about credit within the confines of a safe, parent-supervised system.
According to Apple, the card was created in an attempt to overhaul the way spouses and family members share credit cards and build credit. In particular, it would like to tackle the problem of uneven credit divisions. Normally, the primary account holder gets the benefits of a shared credit card and credit history. However, the Apple Card Family program would allow credit sharing.
Who Can Get The Card?
The Apple Card sharing program is not only open to members of a family, either. According their announcement, the program will allow the card to be shared with any eligible customer over the age of 18. This means that convenient single monthly bills could be split between not only family but friends as well.
The sharing program would not keep financial matters private however. Instead it opts to give members of the shared card a significant level of transparency in being able to see who spent what. The graphic Apple provides on their website shows a program with graphs and metrics. It’s somewhat like the Screen Time section of settings, but with money instead of minutes.
How It Works?
Theoretically, customers sharing an Apple Card could tally up their spending, divide them into percent payments, and make payments fairly and according to their overall spending. This means that a member who barely used the card would not have to pay as much as a member who overused.
Credit history will be shared among all the members of the shared card program. This means that if an account’s credit history sheds a positive light on the participants’ worthiness, it would be reported to credit bureaus and used as part of each member’s credit history.
The possible downside to this program is that negative credit history will go on the accounts of all members. So, regardless of whether or not they spend responsibly and pay bills elsewhere, their credit could still be affected. Credit history will be shared across the entire card-sharing group.
According to Apple, the program is meant to help all cardholders achieve a healthier financial life through its transparency. Hypothetically, a card-sharing group could track one another’s payments, and make plans and adjustments accordingly, talking to one another and discussing spending to come to better financial decisions.