Can you build credit with Apple Pay?

Building Credit with Apple Pay

Apple Pay, the contactless payment method from Apple, offers a convenient way to make purchases using your iPhone, Apple Watch, or Mac. But did you know that you can also use Apple Pay to build your credit?

Apple Card and Credit Reporting

For users aged 18 and above who have an Apple Card, Apple Pay offers the option to have your spending activity reported to credit bureaus. This means that your Apple Pay purchases will appear on your credit report as authorized user activity.

How It Works

When you choose to report your Apple Pay spending activity, Apple will add you as an authorized user to your Apple Card account. As an authorized user, you can make purchases with your Apple Card, but you are not responsible for making payments. Your spending activity will still be reflected on your credit report, even if you do not pay for the purchases yourself.

Benefits of Reporting Spending Activity

Reporting your Apple Pay spending activity can help you build a credit history if you are new to credit or have a limited credit history. By consistently using your Apple Card and making authorized purchases, you can demonstrate responsible spending habits and gradually increase your credit score.

Considerations

It is important to note that while reporting your Apple Pay spending activity can help you build credit, it is not the same as having a direct credit card in your name. As an authorized user, you do not have full control over the account and may be subject to the spending limits set by the primary cardholder.

Additionally, if the primary cardholder misses payments or defaults on the account, it could negatively impact your credit score, even though you are not responsible for the payments.

Conclusion

Apple Pay, combined with the Apple Card, can be a valuable tool for individuals looking to build or improve their credit. By reporting your spending activity, you can demonstrate responsible use of credit and gradually increase your credit score. However, it is important to use this feature wisely and be aware of the potential risks associated with being an authorized user.