Jeff, the replies above miss the point of the question. People are not confused about terminology or what Apple calls the balance. The issue is simple: Apple shows a balance in the account but it cannot actually be selected to pay for anything. Repeating that “Apple Credit doesn’t exist” and linking generic support pages doesn’t address the real problem users are asking about.
What many people run into is that Apple sometimes locks the Apple Account balance until a backup payment method is added. When this happens the balance still shows (for example $100) and appears as a payment option, but it cannot be selected when trying to buy apps, subscriptions or Apple services. The usual fix is straightforward:
- Go to Settings
- Tap your Apple ID
- Tap Payment & Shipping
- Add a debit or credit card
After a card is added Apple usually unlocks the balance and purchases will use the Apple balance first, only charging the card if the balance runs out.
The bigger issue is for parents. Many parents buy Apple Gift Cards specifically so their kids can make purchases without having access to the parent’s credit card, but Apple sometimes requires a card to be added anyway before the balance works. The workaround is to add the card only to unlock the balance and then enable controls so the card can’t be used freely. Parents can turn on Screen Time purchase restrictions or use Family Sharing with Ask to Buy so every purchase requires approval. That way the gift card balance is used first and the credit card cannot be spent without the parent approving it.