Understanding Credit Card Rules For International Students

International students in the U.S. can face challenges when it comes to obtaining a credit card, primarily due to their lack of credit history and citizenship status. While a Social Security Number (SSN) is not required for all credit cards, many card issuers ask for one on the application, which international students may not have. However, there are alternative options available, such as applying for an Individual Taxpayer Identification Number (ITIN) or finding a co-signer. Some credit card companies also offer products specifically for international students, and certain banks provide special accounts for customers relocating to the U.S.

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International students can get a credit card without an SSN

International students in the US often face challenges when it comes to getting a credit card due to a lack of the necessary paperwork, such as not having a Social Security Number (SSN) or proof of address. An SSN is typically issued by the Social Security Administration (SSA) for US citizens and those with the right to work in the country, and it is used for identification and tax-filing purposes. While most US residents have an SSN, international students may not be eligible for one.

However, it is still possible for international students to obtain a credit card without an SSN. Here are some options to consider:

Specialist Credit Cards for International Students

Some credit card providers offer specialist cards designed specifically for international students who don't have an SSN. For example, Discover has the Student Cash Back card and the Chrome for Students card, which both offer cashback rewards on certain purchases. While these cards do require a credit check, other factors are also considered when assessing applications, and it may be possible to get approved even without meeting the minimum credit score. Similarly, Citi allows applicants to enter an Individual Taxpayer Identity Number (ITIN) in place of an SSN, making it a potential option for international students.

Use an Alternative Form of Identification

In some cases, credit card issuers may accept alternative forms of identification instead of an SSN. This could include an ITIN, which international students can apply for at the Internal Revenue Service (IRS) if they are not eligible for an SSN. When applying for a credit card, it is worth checking with the card issuer to see if they accept alternative forms of identification.

Open an Account with an International Bank

If you or your family have accounts with an international bank in your home country, you may be able to open an account with the same bank in the US. For example, Citibank offers special accounts for customers who are moving to the US from other countries. Building an existing relationship with a bank that operates in multiple countries may increase your chances of obtaining a credit card without an SSN.

Get Added to a US Family Member's Account

If you have close friends or family in the US, you could consider asking them to add you as an authorised user on their credit card. This option may not be suitable or possible for everyone, but it can be a good alternative if you have a supportive network in the US.

Build Your Credit History

One of the challenges for international students is that they often have no local credit history, which can make it difficult to get approved for a credit card. However, there are ways to start building your credit history, such as using a secured credit card, paying your bills on time, and increasing your income. Once you have established some credit, you may have more options for obtaining a credit card without an SSN.

While it may be challenging, it is not impossible for international students to obtain a credit card without an SSN in the US. By exploring these options and choosing providers that cater to international students, you can start building your credit history and accessing the financial services you need during your time in the country.

Foreign students can use alternative credit cards

One option is to apply for a credit card in your home country before you travel, as international banks provide MasterCard, American Express, or VISA brand cards, all of which can be used in the US. Citibank offers student credit cards that do not require a Social Security number, while Capital One offers the SavorOne Student Cash Rewards Credit Card and the Quicksilver Rewards for Student cards, which can be applied for with an ITIN. The Petal 2 Visa card can also be applied for with an ITIN, but it is only available in the US.

Another option is to use a secured credit card, such as the $0-annual-fee Discover it Secured Credit Card, which requires a minimum $200 deposit but offers a path to upgrade to a regular unsecured card. The Zolve card is another option that does not require an SSN and offers 1% cashback on all purchases. The Deserve EDU Mastercard is also a good option for international students, as it offers a simple cashback program, no annual fees, and additional perks like Amazon Prime Student.

If you are not concerned about building a credit score, you may prefer the Wise Account and international debit card, which can be obtained online or through the Wise app. This option provides a USD balance and local US bank details to get paid fee-free. Additionally, if you have accounts with an international bank in your home country, you may be able to open an account with the same bank in the US, and they may be more willing to extend credit to you.

Foreign students can use a card from their home country

International students can face several challenges when trying to obtain a credit card in the US. Firstly, they need to build a financial profile, which can be a lengthy process. They must then obtain a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), which are prerequisites for applying for a credit card. However, to obtain an SSN, international students must be eligible to work in the US, which is not always the case.

Given these challenges, foreign students can opt to use a card from their home country. This is a viable option for emergencies or occasional use, as some cards may offer poor exchange rates or have limited acceptance in the US. Additionally, debit cards are a common alternative for international students since they are generally accepted where credit cards are, even though they do not contribute to building credit history.

If an international student has a relative or close friend in the US, they may be able to get that person to co-sign for a credit card. This can be a way to build credit history and establish financial credibility in the country. Another option is to explore alternative" credit cards, which do not rely on traditional credit evaluation methods and instead use proprietary underwriting models to determine creditworthiness based on factors like school, income, or bank account information. These cards specifically target international applicants and can be a good option for those facing challenges in obtaining traditional credit cards.

While using a card from one's home country can be a solution for international students, it is important to be cautious of high fees associated with some cards, such as annual fees, balance transfer fees, and foreign transaction fees. It is also worth noting that while debit cards are convenient, they do not contribute to building a credit history, which is essential for various aspects of life in the US, such as securing housing or applying for loans.

Foreign students can get a secured credit card

Foreign students can get a credit card in the US, but it can be difficult to get approved. One option for foreign students is to get a secured credit card. These cards require a deposit that becomes the cardholder's credit limit. For example, a $500 deposit for a $500 line of credit. The card can then be used like any other credit card to make purchases that don't exceed the credit limit. Monthly payments will be reported to one of the major credit bureaus, and cardholders should keep their credit utilization low and make payments on time to build their credit score.

Most secured credit cards require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to apply. Foreign students can get an ITIN, which is a federal ID number that takes the place of an SSN for people who aren't eligible for Social Security benefits. In general, only US citizens and people authorized to work in the US can get an SSN.

Some credit card companies, like American Express, are partnering with third-party service providers to check credit scores from other countries to better evaluate applications from those who only have credit history outside the US. You'll still need an SSN or ITIN to apply for an Amex card, but if you have credit from another country, you can use it to qualify for a better card. This option may appeal more to older students in doctorate programs than younger students.

Another option for foreign students is to open an account with an international bank that has a presence in the US. For example, Citibank offers special accounts for customers who are moving to the US from elsewhere. You may be more likely to get approved for a credit card from one of these banks since you've already proven yourself as a customer.

It's important to note that building credit in the US is crucial for foreign students, even if they plan to return to their home country after finishing their studies. Landlords, employers, insurance companies, and utility companies often rely on credit history to evaluate applications.

Foreign students can use a debit card

If you are a foreign student in the US, you can open an American bank account with a debit card. This will allow you to pay for things and withdraw money from ATMs until you can establish credit. Some transactions, like renting a car, may be more difficult with a debit card, but it is still a viable option for everyday spending.

If you or your family have accounts with an international bank in your home country, you may be able to open an account with the same bank in the US. For example, Citibank offers special accounts for customers moving to the US from other countries. In addition, some credit card companies, like Deserve, offer Mastercard credit cards specifically for international students.

It is important to note that building credit is crucial in the US, even if you plan to return to your home country after your studies. Landlords, employers, insurance companies, and utility companies often rely on credit history to assess your reliability. Therefore, foreign students should aim to build their credit history by obtaining a credit card or loan and ensuring that their responsible use of credit is reported to the credit bureaus.

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