Douglas Olsen
International students seeking a credit card in the U.S. face several challenges, including the need for a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), as well as a lack of U.S. credit history. While foreigners can theoretically obtain a credit card with an SSN or ITIN, international students often lack U.S. credit history, making it difficult to establish creditworthiness. Additionally, F and J student visa holders are considered non-resident aliens during their first five calendar years in the U.S., further complicating their eligibility for certain credit cards. To overcome these obstacles, international students can explore alternative credit-building options, such as secured credit cards, credit-builder loans, or cards that use proprietary underwriting models. Building a financial profile, including a U.S. bank account, is also recommended to enhance their chances of obtaining a credit card.
| Characteristics | Values |
|---|---|
| International students' eligibility for credit cards in the U.S. | International students can theoretically get approved for a credit card in the U.S. if they have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). |
| SSN eligibility | International students with an F-1 visa and work authorization can apply for an SSN. |
| ITIN eligibility | International students who are not authorized to work in the U.S. can apply for an ITIN. |
| Alternative options | International students can explore "alternative" credit cards that don't require a security deposit or traditional FICO-based credit evaluation. They can also use a debit card, which is accepted at most stores that take credit cards. |
| Building credit | International students typically start from scratch when building credit in the U.S. They can begin by speaking with their international student affairs office to determine their eligibility for on- or off-campus jobs, which impacts SSN eligibility. |
| Card requirements | Most credit card applications require an SSN or ITIN. Some cards also require a U.S. bank account. |
| Student-specific cards | Some banks and credit card companies offer products targeted at students, including international students. However, age and income requirements may apply. |
| Visa considerations | F and J student visa holders are considered non-resident aliens for tax purposes during their first five calendar years in the U.S. and resident aliens thereafter. |
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What You'll Learn
- International students' eligibility for Social Security Numbers (SSNs)
- International students' eligibility for Individual Taxpayer Identification Numbers (ITINs)
- International students' ability to build credit
- International students' access to bank accounts
- International students' visa status and its impact on credit card applications
International students' eligibility for Social Security Numbers (SSNs)
F-1 and J-1 students are eligible for SSNs provided they meet certain requirements. These include having valid immigration documents, such as a passport, I-20 or DS-2019 form, and an I-94 card or electronic I-94 notated with their visa status. Additionally, F-1 students must provide evidence of lawful employment, such as on-campus job offers or authorisation for practical training. J-1 students must also show evidence of employment and be registered for a full course of study. If sponsored by an external organisation, they should obtain a Social Security letter from their sponsor.
International students with an F-1 visa that provides work authorisation in the US can apply for an SSN, which is a requirement for most student credit cards. Students not authorised to work in the US can instead apply for an Individual Taxpayer Identification Number (ITIN). This number can be used to apply for certain credit cards, although the options may be limited.
It is important to note that building a credit history is crucial for international students who plan to stay in the US long-term. While a debit card is a common option for international students, it does not help build credit. Starting a financial profile and exploring alternative credit cards that use proprietary underwriting models can be good first steps for international students.
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International students' eligibility for Individual Taxpayer Identification Numbers (ITINs)
International students may need an Individual Taxpayer Identification Number (ITIN) if they are not eligible for a Social Security Number (SSN). Most foreign students and scholars in F-1, J-1, M-1, and Q-1 nonimmigrant status are eligible to be employed in the United States and are, therefore, eligible to apply for an SSN if they are employed.
International students who are not eligible for an SSN may apply for an ITIN if they have a valid tax reason. For example, F and J students and scholars who are nonresidents for U.S. tax purposes can use GLACIER Tax Prep (GTP), web-based tax preparation software, to determine if they need an ITIN. If an ITIN is required, GTP will prepare the ITIN application form.
It is important to note that not all IRS taxpayer assistance centers process ITINs, so it is recommended to verify this before making an appointment. The IRS will assign a number within approximately seven weeks if the application is complete and the individual is eligible. To apply for an ITIN, individuals may need to submit the following documents:
- Passport and visa stamp
- Copy of the fellowship or scholarship letter
- I-94 printed from the CBP I-94 website
- I-20 or DS-2019 form
- Certified copy of the visa stamp with the date of first entrance to the U.S. in the current status
- Letter of non-approved work authorization from the designated school official
International students with an F-1 visa that provides work authorization in the U.S. can apply for an SSN and thus qualify for most student credit cards. Students not authorized to work in the U.S. can apply for an ITIN, which is required for certain nonresident and resident aliens who cannot get an SSN.
It is worth noting that getting a credit card as an international student can be challenging due to the lack of a U.S. credit history. However, building a financial profile and exploring alternative credit card options specifically targeting international applicants can be helpful.
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International students' ability to build credit
International students face several challenges when it comes to building credit in the United States. Firstly, they may not have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), which are typically required to apply for a credit card. International students with an F-1 visa that provides work authorization in the US can apply for an SSN, while those without work authorization can apply for an ITIN. However, students with income only from foreign sources are not eligible for either and, therefore, cannot qualify for most credit cards.
Additionally, credit card issuers tend to analyse an applicant's credit history, but international students usually lack a US credit history, making the application process more difficult. The FICO score, the most common credit rating system in the US, requires at least six months of credit history to be generated. This leaves international students in a Catch-22 situation, where they need a credit card to build credit but cannot obtain one without first establishing a credit history.
Despite these challenges, building credit is important for international students who plan to stay in the US long-term. Credit scores can impact various aspects of life, including securing loans, renting apartments, purchasing cars, applying for mortgages, and even employment opportunities. Therefore, it is advisable for international students to start building their credit history as soon as possible. One way to do this is by applying for a secured credit card, which requires a minimum deposit and offers a path to upgrading to a regular unsecured card. Alternatively, international students can explore "alternative" credit cards that do not require a security deposit or traditional FICO-based evaluation methods. These cards use proprietary underwriting models that consider factors such as school, income, or bank account information.
Another strategy is to open a local bank account, which is critical to establishing a credit profile. International students can also explore the option of getting a co-signer for a credit card, such as a relative or close friend who has been in the US longer. Additionally, some banks offer special accounts for customers moving to the US, and having an existing relationship with an international bank may increase the likelihood of obtaining credit.
While building credit can be challenging for international students, it is not impossible. By exploring alternative credit card options, opening local bank accounts, and leveraging existing relationships, international students can take steps towards establishing a solid credit history in the United States.
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International students' access to bank accounts
International students can open bank accounts in the US, and it is advisable to do so with a national bank such as Bank of America or Chase, rather than a state-specific bank. This is so that you can use ATMs located across the country, which is especially useful if you are an international or out-of-state student.
There are two types of bank accounts in the US: a checking account and a savings account. A checking account lets you deposit and withdraw money as often as you like, and you usually receive a chequebook and a debit card. A savings account is for collecting money over a longer term, and it is a good idea for students who are working or want to save for travel or emergencies.
Some banks may allow you to open an account online if you have a Social Security card or other US government-issued identification. However, international students should usually plan to open their accounts in person. To open an account, you will generally need two forms of identification, such as a passport and a secondary document (e.g. a driver's license, birth certificate, student ID, or major credit card). You will also need to provide an ID, utility bill, or rental agreement that shows your physical address in the US, government forms related to your domestic studies, and a letter proving you are enrolled in university.
It is worth checking what different banks offer students, as some banks waive maintenance fees on student checking accounts. If you think you will need cash regularly, look for a bank with branches or fee-free ATMs close to campus.
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International students' visa status and its impact on credit card applications
International students on an F or J visa are considered non-resident aliens during their first five years in the US. After five calendar years, they are considered resident aliens. International students with an F-1 visa that provides work authorization in the US can apply for a Social Security Number (SSN) and thus qualify for most student credit cards. Students not authorized to work in the US can apply for an Individual Taxpayer Identification Number (ITIN), which is for any individual in the US. Most credit card applications require an SSN or ITIN.
It is not necessary to be a US citizen to qualify for a credit card in the US. However, credit card companies must verify your identity, and some companies choose to only offer cards to US citizens or permanent residents with an SSN. Some cards are only available to legal permanent residents, but there are credit card issuers, banks, and credit unions that offer credit cards to applicants regardless of citizenship status.
International students are not likely to have a US credit history, which makes the application process more difficult. Credit card issuers analyze an applicant's credit history before approving an application. International students can start building a financial profile by speaking with the international student affairs office at their educational institution. They can inform students of their eligibility to get an on- or off-campus job, which determines their eligibility to apply for an SSN.
There are a few options for international students to get a credit card. Some banks or credit card companies offer specific products targeted at the student market. International students with an eligible US bank account can apply for a secured credit card, which requires a minimum deposit but offers a possible upgrade path. Alternatively, there are alternative" credit cards that do not require a security deposit and do not rely on traditional FICO-based credit evaluation. Instead, they use their own underwriting models to determine creditworthiness, taking into account factors like school, income, or bank account information. Some of these cards specifically target international applicants.
If international students have accounts with an international bank in their home country, they 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 elsewhere. They can also consider getting a debit card, which is generally accepted at any store that takes credit cards.
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Frequently asked questions
No, you do not need to be a US citizen to qualify for a credit card in the US. However, some credit card companies will only offer cards to US citizens or permanent residents with a Social Security Number (SSN).
International students can apply for a credit card with their passport, student visa, and immigration forms. They will also need a US bank account to link to their credit card account. Students with an F-1 visa that provides work authorization can apply for an SSN, while those without work authorization can apply for an Individual Taxpayer Identification Number (ITIN).
Yes, some credit card companies offer products targeted at the student market, including international students. These include the $0-annual-fee Discover it® Secured Credit Card, which requires a minimum deposit of $200.
F and J student visa holders are considered non-resident aliens during their first five calendar years in the US. After five years, they are considered resident aliens.
