International Students And Credit Cards: What You Need To Know

As an international student, you can get a credit card in the US, but it may require a few additional steps. Credit card companies will often check your credit history and may ask for an SSN or ITIN, which can be difficult if you're new to the country. However, some credit card issuers provide cards exclusively for students that only require a passport for the application. You can also get added as an authorized user on a trusted friend or family member's credit card account, which can help build your credit score. If you have a part-time job or can prove your ability to pay your debts, you may also qualify for a credit card.

International students without a Social Security Number

Some card issuers also accept a passport as an alternative to an SSN. Capital One, for example, accepts ITINs for most of its credit cards, while Deserve® EDU and Bank of America may issue a student card based on your passport.

If you are unable to get a credit card in the US, you can ask a trusted family member or friend to add you to their existing credit card as an authorized user. As an authorized user, you will receive a credit card with your name on it, and any expenses made will be charged to the account owner.

Another option is to consider a secured credit card. These cards require a cash deposit as collateral but can help you build credit when used responsibly.

It's also worth noting that some credit card issuers, like American Express, can take into account international credit history from a range of countries, which may help your application.

Additionally, you can use your credit card from your home country in the US, but it may come with high fees and will not help you build a US credit score.

Getting a credit card with a passport

International students can get a credit card, but the process is often challenging. While a credit card can be a useful tool for financial independence and building a credit score, international students often face hurdles when seeking credit-building opportunities in a new country.

One of the biggest challenges is that most credit card applications require a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). International students may not be eligible for an SSN if they do not have work authorization or are not employed. In such cases, they can apply for an ITIN, which can be used for credit card applications. Additionally, international students may not have an established credit history in the country they are applying for a credit card, which can make the approval process more difficult.

However, there are a few options for international students to obtain a credit card:

• Student Credit Cards: Some credit card issuers offer student credit cards specifically designed for young college students applying for their first credit card. These cards usually have benefits such as no annual fees and cashback rewards. Some student credit cards only require a passport for application, while others may require an SSN or ITIN.
• Authorized User: Becoming an authorized user on an existing US credit account is another way to gain access to credit. This option does not require an SSN, ITIN, or credit score, but it is important to discuss the details of usage and payment with the primary cardholder.
• Secured Credit Cards: International students can apply for secured credit cards or credit-builder loans to establish and build their credit history. These cards may require a security deposit and can help improve approval odds for other credit cards in the future.
• Part-time Employment: Depending on their student visa, international students may be able to secure part-time employment, which can provide proof of income and qualify them for an SSN. This can increase their chances of obtaining a credit card.
• International Banks: If international students have accounts with international banks 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 and credit cards for customers moving to the US.
• Co-signer: Although not all banks allow this, having a co-signer can help demonstrate to the credit card issuer that the applicant is able to make timely payments. This can improve the chances of approval.

It is important to note that the requirements and options for obtaining a credit card may vary depending on the country and the specific policies of credit card issuers. International students should carefully review the requirements and consider seeking advice from their educational institution's international student affairs office.

Becoming an authorized user on someone else's card

International students can get a credit card by becoming an authorized user on someone else's account. This is a useful option if you can't qualify for a traditional credit card on your own. As an authorized user, you will receive a credit card with your name on it, and any expenses made will be charged to the account owner.

Becoming an authorized user on someone else's credit card account can preclude the need for an SSN or an ITIN with some banks. This is because, as an authorized user, you aren't responsible for paying off the primary cardholder's charges. However, the primary cardholder's activity is included as part of your credit history, including their payment history and balances. This means that if the primary cardholder practices good credit habits, such as paying on time and keeping their credit utilization low, your personal credit score will increase. On the other hand, if the primary cardholder misses payments or carries a high balance, your score will be damaged. Therefore, it is important to set up a spending and payment plan so that neither the original cardholder nor the authorized user ruins their credit.

To ensure that becoming an authorized user will help you build your credit score, you should call the number on the back of the card to make sure that the credit card company reports authorized user activity to a credit bureau. Not all credit card issuers have to report authorized users' activity, but some, like Capital One, do.

Building a credit history

International students can get a credit card in the US, but it may be difficult due to the need for a credit history and an SSN or ITIN. However, building a credit history is an important step towards establishing yourself in the US, and it can be done in several ways.

Firstly, international students can open a US bank account, which is a positive signal to lenders and can make it easier to apply for a credit card. Once you have a US bank account, you can use tools like UltraFICO™ and Experian Boost to report positive account activity to credit bureaus, such as utility bills, subscriptions, and rent payments, which can help boost your credit score.

Secondly, international students can apply for credit-builder loans (also known as starter loans) and secured credit cards, which do not require a credit history. Secured credit cards require a one-time, refundable security deposit to open an account, and they function much like traditional, unsecured credit cards. Monthly payments are reported to one of the major credit bureaus, and cardholders should keep their credit utilisation low and make payments on time to build their credit score.

Thirdly, international students can increase their income by working a part-time job, which can give credit card issuers assurance that they can pay their bills. A part-time job can also qualify students for an SSN or ITIN, which is required by most credit card applications. Students with F-1 or other student visas may qualify for an SSN.

Lastly, international students can become an authorised user on an existing US credit account. This does not require an SSN or ITIN, and it can help build credit history as long as the account is used responsibly.

Secured credit cards

As an international student, you may face challenges in getting a credit card in the US. One way to overcome this challenge is to apply for a secured credit card. A secured credit card can be a great first step towards building your credit history. It looks and functions like a traditional credit card, but with one key difference: you need to pay a one-time, refundable security deposit to open an account. This deposit serves as your credit line, and your payments will be reported to the credit bureaus. This means that even if you have no credit or bad credit, you can still get approved for a secured credit card and start building your credit score.

There are several options available for international students who want to apply for a secured credit card. For example, Firstcard offers a credit card specifically designed for international students without an SSN. You can easily apply with your passport and start building your credit score in the US. Another option is to look for credit cards that accept an Individual Taxpayer Identification Number (ITIN). Capital One offers two such options: the SavorOne Student Cash Rewards Credit Card and the Quicksilver Rewards for Student card. Both of these cards have no annual fee, and you can earn cash back on purchases.

In addition to secured credit cards, there are other ways for international students to build their credit history. One option is to become an authorized user on a trusted friend or family member's credit card account. This can help you build your credit score without having to apply for your own card. Another option is to open a US bank account and use new credit reporting tools like UltraFICO and Experian Boost to report positive account activity, such as utility bills and rent payments, to credit bureaus. Building a solid credit history will improve your chances of getting approved for a credit card in the future.

Frequently asked questions