Does the Apple Card Build Your Credit?

Getting your first credit card is an important step in building your credit history. With strong credit, you can more easily get approved for loans and other credit products in the future But not all credit cards are created equal when it comes to building credit. The Apple Card in particular offers unique benefits for credit newbies Here’s what you need to know about how the Apple Card can help build your credit.

The Apple Card Basics

The Apple Card is a credit card that Apple made and that can be used with Apple Pay. It is backed by Goldman Sachs. It is located in the Wallet app on iPhones and lets you get approved right away. It also offers daily cash back rewards and works with iOS.

Some key things to know about the Apple Card

• Available only to iPhone users in the US
• Requires approval based on creditworthiness
• Offers 1% to 3% daily cash back on purchases
• Provides tools to track spending and payments in iOS
• Shows real-time updates as balances are paid down

It works like any other credit card in a lot of ways. But it also has some features that can help people who are new to credit.

Building Credit as an Authorized User

One way the Apple Card can help build credit is by adding you as an authorized user to someone else’s account. The primary cardholder can invite family members ages 13 and up to use their Apple Card through the Wallet app’s card sharing feature.

As an authorized user, the card’s payment history will be reported on your credit report even though you’re not financially responsible for the account. This allows you to build credit just by using the card responsibly.

To become an authorized user:

• The primary cardholder sends you an invite through iMessage
• You accept the invite through the Wallet app
• The card gets added to your Wallet so you can use it

You can use the same rewards, spending limits, and app features as the main cardholder. The balance and history of the account can be seen on the credit reports of both users.

Building Credit as the Primary User

Of course, you can also apply for the Apple Card as the primary account holder. Even if you don’t have a robust credit profile yet, you may be approved.

Apple says they look beyond traditional credit scores to approve applicants based on “where you shop and how you spend”. So even first-time credit applicants have a chance of getting the Apple Card.

Once approved, simply using the card responsibly can build your credit. Things that help:

• Making at least the minimum payment every month
• Keeping your credit utilization low
• Paying your balance off in full each month
• Having a mix of credit types (i.e. credit cards and loans)

The Apple Card makes it easy to keep an eye on these kinds of best practices. The app shows how much you’ve spent, when your payments are due, how much interest you can save by paying early, and more.

Unique Features for Building Credit

Beyond the basics of credit reporting and responsible use, the Apple Card has some unique features that can benefit your credit building efforts:

Spending insights: The intuitive iOS app provides granular insights into your spending behavior, helping you make smart financial decisions that support your credit.

Flexible payment options: You can schedule more frequent payments at higher amounts to keep balances low. This improves your credit utilization.

No fees: There are no annual, foreign transaction, or late fees with Apple Card. This avoids dings to your credit from fees.

Soft credit check for CLIs: Credit limit increase requests only do a soft pull on your credit, minimizing hard inquiries.

Peer-to-peer support: Connecting with other Apple Card users allows you to learn credit best practices.

Seamless experience: It integrates directly with Apple Pay for a smooth user experience that encourages responsible spending.

The Bottom Line

The Apple Card can be a great option for those new to credit or looking to build up their scores. Thanks to its flexible approval process, useful app features, and responsible credit building perks, it makes establishing credit straightforward and simple. Just be sure to pay your bill on time and keep balances low, and the Apple Card can help boost your credit profile.