Apple Card Family: Spouses & Teens Now Included

Apple Expands Financial Services with Apple Card Family

Apple is progressively establishing itself as a significant player in the financial services sector, leveraging its digital wallet for payment card storage and the 2019 introduction of the Apple Card. During its recent spring event, the company unveiled the next phase of this development: Apple Card Family. This new feature will enable partners and spouses to jointly build credit, and extend Apple Card access to family members aged 13 and above.

Launch Details and Timing

The rollout of Apple Card Family is scheduled to begin in the United States in May, following updates to the latest version of iOS.

Recent Regulatory Clearance and Industry Context

The announcement arrives shortly after Apple and its partner, Goldman Sachs, were cleared of allegations of gender bias in their credit scoring practices for the Apple Card. This followed a lengthy investigation that paralleled the card’s existence.

Addressing Systemic Disparities

The regulator’s assessment, even while clearing Apple, highlighted broader gender and other inequalities within the credit scoring system, particularly concerning spouses and partners.

Some observers suggest today’s announcement is a natural progression, while others view it as a much-needed update.

A Commitment to Equity

This service launch appears to be a deliberate effort by the company to solidify its commitment to fairness and formally articulate its intention to promote equitable practices, even as regulatory frameworks evolve.

“Early on, when we launched Apple Card, we recognized a lack of fairness in how the industry calculated credit scores for dual cardholders,” stated CEO Tim Cook. “Typically, only one individual benefited from building a positive credit history, while the other did not. Our goal is to fundamentally change this process.”

(Prior to this announcement, developer previews of iOS 14.5 indicated Apple was integrating multi-user support for Apple Cards, preparing the foundation for joint accounts and expanded family access.)

Features of Apple Card Family

As described by Cook, spouses and partners will have the ability to share and consolidate their credit lines, enjoying equal rights on their account to “build credit equally.”

“This solution promotes financial equity and represents a significant advancement,” he emphasized. This move allows for the transfer of stronger spending capacity from one partner to another, particularly in situations where partners combine their finances, especially when one partner has existing debt or varying income levels. It’s a logical and overdue step.

Controls for Younger Users

Granting Apple Card access to individuals over the age of 13 will include customizable spending limits and usage controls.

This aligns with Apple’s established reputation as a “responsible” technology company, offering privacy controls for all users and parental controls for devices, now extending to financial education.

With increasing numbers of parents utilizing technology and applications to enhance their children’s financial literacy, it’s logical for Apple to position itself as a supportive partner in this endeavor.

Business Implications and Growth Potential

While fostering more equitable financial management within families, there’s also a clear business strategy at play: expanding Apple’s potential consumer base for its Apple Card, and increasing usage of services like Daily Cash, which provides up to 3% cash back on purchases, and the secure titanium Apple Card, devoid of visible card numbers, CVV codes, and expiration dates.

The exact number of Apple Card users remains undisclosed. Cook simply described the card’s launch as “the most successful credit card launch ever,” estimating over 3.1 million users as of March 2020.

Additional Program Details

Account Additions: Apple Card owners can add up to five family members to their account. All users must be part of the same Family Sharing group and be at least 13 years old.
Combined Credit Lines: When accounts are merged, a combined credit line is established, equaling the sum of the individual lines. For instance, a $5,000 line combined with a $10,000 line results in a $15,000 line. The lower of the two APRs will apply.
Credit Reporting: All account activity, both positive and negative, will be reported to credit bureaus for all co-owners of the Apple Card.
Participant Status for Minors: Individuals under 18 added to the Apple Card Family program are designated as “participants,” not co-owners. Upon reaching an age where they consider establishing their own credit, they can choose to share their Apple Card spending with credit bureaus, fostering early credit history building with parental oversight.
Daily Cash Rewards: Both co-owners and participants will receive Daily Cash rewards for their Apple Card purchases.