Opening Credit Cards: International Students' Guide

As an international student, you can apply for a credit card in the US, which can help you establish a US credit score. This can be useful for applying for loans and financing, as well as improving your qualifications for renting a home and applying for jobs. While you can use a credit card issued in your home country in the US, your credit use will not contribute to your US credit score. To apply for a US credit card, you may need a Social Security Number or an Individual Taxpayer Identification Number (ITIN), as well as proof of income. Some credit card companies, like American Express, will also accept your foreign credit history from select countries.

International students can open a credit card with an ITIN or SSN

International students can open a credit card in the US through an SSN, an ITIN, or a passport. If you are planning on building a life in the US, applying for and using a credit card can help you establish a US credit score. This may allow you to apply for loans and financing and improve your qualifications for renting a home and applying for a job.

Using an SSN

An SSN, or Social Security Number, is typically required when applying for a credit card in the United States. However, international students may find it difficult to obtain an SSN, as they need to have work authorization along with their student status. F-1 visa holders may be eligible for Curricular Practical Training (CPT), which allows them to work off-campus in jobs and internships related to their academic program.

Using an ITIN

If you are unable to obtain an SSN, you can apply for an ITIN, or Individual Taxpayer Identification Number, from the IRS (Internal Revenue Service). An ITIN can be used in place of an SSN when applying for a credit card, and most international students are eligible to apply for one. Capital One, Citi, and American Express are examples of lenders that accept ITINs for their credit cards.

Using a Passport

Some credit card issuers, like Bank of America and Deserve® EDU, may issue a student card based on your passport. However, you may need to apply in person at a financial center rather than online. Additionally, using a credit card issued in your native country that allows purchases in the US is an option, but your credit use will not contribute to your US credit score.

Open a US bank account to increase your chances of approval

As an international student, you can increase your chances of getting approved for a credit card by opening a US bank account. This is because a big part of getting approved for a credit card is proving that you have a source of income, and establishing a monetary base in the US is a positive signal to lenders.

Opening a US bank account is a good way to establish a financial relationship with a bank, which can work in your favour when it comes to applying for a credit card. You may find it easier to apply for a credit card issued by the bank with which you open an account, and your chances of approval may be higher.

Once you have a US bank account, you can use tools like UltraFICO™ and Experian Boost to report positive account activity to credit bureaus, which can help boost your credit score. This includes reporting utility bills, subscriptions, and rent payments.

In addition to opening a US bank account, there are other ways to increase your chances of approval for a credit card as an international student. Some credit card issuers provide cards exclusively for students that only require your passport to submit an application. You can also apply for US student credit cards that require an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN). If you already have an SSN or ITIN, you should be able to apply for most credit cards.

Another option is to become an authorized user on an existing US credit account. A cardholder can add an eligible user with an SSN or ITIN to their credit account as an authorized user, without relying on the authorized user's credit score. 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.

You can also increase your income by working a part-time, on-campus job, which can improve your chances of credit card approval. Check with your advisor to make sure your job won't conflict with your student status.

Become an authorized user on an existing US credit account

If you are an international student in the US and are unable to get a credit card, you can ask a trusted family member or friend to add you to their existing credit card as an authorized user. This is a great way to build your credit history.

An authorized user is an additional cardholder on someone else's credit card account. The primary cardholder has full control and responsibility over the account. You can have your own card with your name on it, and any expenses you make will be charged to the primary cardholder. It is important to note that if the primary cardholder misses a payment, it will negatively impact your credit score. Therefore, it is recommended that you only become an authorized user on an account owned by someone with good or excellent credit.

To add an authorized user, the primary cardholder can do so online, via their bank's mobile app, or over the phone. The process is usually quick, and the new card will be mailed to the primary cardholder's address. There may also be the option to ship the card to an alternative address. Depending on the credit card, there may be a fee for adding an authorized user. For example, the Chase Sapphire Reserve® charges $75 per year for each additional card. However, some credit cards do not charge authorized user fees, such as the Chase Sapphire Preferred® Card and the Capital One Venture Rewards Credit Card.

Becoming an authorized user is a useful workaround for getting access to credit if you can't qualify for a traditional credit card on your own. It can be a relatively low-risk option that allows you to build or boost your credit score. Additionally, you don't have to use the card to see your credit score rise as a result of being an authorized user. However, keep in mind that if the primary account holder doesn't pay their bill, has too high of a balance, or closes their account, your credit can be negatively impacted.

Apply for a secured credit card or loan to build credit history

International students face several challenges when applying for their first credit card in the US. Most credit card applications require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), and a positive credit history. Many international students do not have an SSN or ITIN, and their credit history from their home country does not count in the US.

If you are an international student and are struggling to get approved for a regular credit card, you can apply for a secured credit card or credit-builder loan to build your credit history. With a secured credit card, you put down a deposit that becomes your credit limit, and your payments are reported to credit bureaus. This allows you to build a positive credit history over time. After six to twelve months of positive credit history, you may be able to transition to an unsecured credit card.

Credit-builder loans are another option to build your credit history. These are small loans that are deposited into a locked savings account. By making regular, on-time payments, you can establish a positive credit history. You can also try to get added as an authorized user on someone else's credit card account. As an authorized user, you can benefit from their positive credit history without being responsible for paying off their charges. However, be cautious about who you choose as the primary cardholder, as their negative credit habits will also impact your score.

In addition to applying for a secured credit card or loan, you can improve your chances of getting approved for a regular credit card by increasing your income. Working a part-time, on-campus job as a student can help improve your qualifications for a credit card. You can also put utility bills in your name if the utility company reports payments to credit bureaus. Finally, having an active US checking or savings account with consistent deposits can show that you have the funds to pay off credit card purchases.

Get a part-time job to increase your income and qualify for better terms

As an international student, you can increase your chances of getting a credit card by getting a part-time job. This is because credit card issuers need to be assured that you have a source of income and can pay your bills.

When applying for a credit card, whether you’re an international student or not, most issuers will check your credit history and require an SSN, though some issuers will accept an ITIN or even a visa. You'll also need to prove yourself as creditworthy.

Your income is a significant factor in determining your eligibility for a credit card and the terms you're offered. Credit card issuers use your income to assess how much you can borrow and how much you can pay back. By working a part-time job, you can increase your income and qualify for better credit card terms, such as higher credit limits and lower interest rates.

Additionally, having a part-time job can help you build a positive credit history by making timely bill payments and maintaining a good debt-to-income ratio. This will improve your overall creditworthiness and make you a more attractive candidate for credit card issuers.

It's important to note that some credit card issuers have concrete income minimum requirements, while others may be less willing to accept your application if your wage varies from month to month. Therefore, it's essential to check the specific requirements of different credit card issuers before applying.

Frequently asked questions