Ibrahim Gardner
International students in the US may qualify for credit cards, which can offer convenience and the opportunity to build a US credit history. While options may be limited, there are still benefits to having a credit card as an international student in the US. This includes building a credit score, which can be valuable for future financial needs, such as student loans, auto loans, or apartment leases. To apply for a credit card in the US, international students may need a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). Some credit card companies may not require an SSN, but most do. Additionally, international students can open a US bank account, sign up for a prepaid card, or become an authorized user on someone else's card.
| Characteristics | Values |
|---|---|
| Difficulty | Getting a credit card as an international student can be difficult. |
| Requirements | Requirements vary depending on the credit issuer. Most require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), but some do not. |
| Eligibility | International students with an F-1 or J-1 visa can apply for an SSN through the Social Security Administration (SSA). |
| Building a Financial Profile | Students should speak with their international student affairs office to determine eligibility for an on- or off-campus job, which determines SSN eligibility. |
| Alternative Options | International students can open a U.S. bank account, sign up for a prepaid card, or become an authorized user on someone else's account. |
| Secured Credit Cards | Secured credit cards are an option for international students without a U.S. credit history and usually require a security deposit. |
| Credit-Building | Credit cards can help international students build a U.S. credit history, which is valuable for future financial needs like loans and leases. |
| Workarounds | Zolve offers a U.S. credit card for international students without requiring an SSN, but rather basic information and documentation. |
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What You'll Learn
Getting an SSN or ITIN
International students in the USA can get a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). An SSN is used by employers and employees to report individual earnings for tax purposes. It is also often used for opening phone, utility, or bank/credit card accounts. To get an SSN, you must show the Social Security Administration that you are eligible to work in the US. If you are a student on an F-1 or J-1 visa, you can apply to get an SSN through the Social Security Administration (SSA). You will need to wait 2-3 weeks after arriving in the US to apply for the SSN, and the approval process can take up to four weeks. To apply for an SSN, you need two letters: a campus employment letter from your hiring department and an ISS On-Campus Employment Authorization/SSN Eligibility Letter. You will also need an I-94 card or a copy of your J-1 admission stamp in your passport and a printout of your electronic I-94 information. You must visit the SSA office and show your documentation within 45 calendar days of completing your online application.
If you are not eligible for an SSN, you can apply for an ITIN. An ITIN is issued by the Internal Revenue Service (IRS) and is for international students who are not eligible for an SSN. You will need an ITIN to file your US tax return if you need to file a 1040NR tax return. The application process for an ITIN can take up to seven weeks. Dependents should plan to apply for an ITIN in person at the local IRS Taxpayer Assistance Center. If you are not eligible for an SSN because you do not have an on-campus job and do not plan to apply for OPT or CPT soon, you may submit an ITIN application request via OISS Connect.
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Opening a US bank account
International students can open a bank account in the US, and it is recommended that they do so. Opening a US bank account has many advantages, such as making it easier to manage finances, avoiding hefty international banking fees, and paying bills online or by check. It is also useful for paying tuition fees, which most universities accept directly from US bank accounts, and it can help to build a credit history, which may be useful for future loans or mortgages.
When opening a US bank account, international students will generally need to provide two forms of identification, such as a passport, and a tax identification number. Some banks may require additional documentation, such as a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). It is worth noting that some banks may be more accommodating to international students and may accept alternative forms of ID when opening an account.
There are several options for international students when choosing a bank. National banks, such as Wells Fargo and Bank of America, have branches in many cities and a large network of ATMs. They often provide deals and sign-up bonuses, such as no monthly fees for students, that appeal to college students. Local banks, on the other hand, may offer more convenience, such as managing your money from your phone or computer, and having a branch on or near campus. International banks are also an option, especially for those who frequently handle multiple currencies, but they may require a premium account to access the best perks.
When opening a bank account, international students will usually choose between a checking and a savings account. A checking account is useful for day-to-day spending, such as groceries or online shopping, while a savings account is designed for short or long-term savings for bigger purchases. It is important to compare the fees, services, and ease of opening an account at different banks before making a decision.
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Becoming an authorised user on someone else's account
International students can face challenges when trying to get a credit card in the USA. One way to overcome this is by becoming an authorised user on someone else's account. This method precludes the need for a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) with some banks. An authorised user is someone who is allowed to use someone else's credit card. The person who owns the credit account is called the primary cardholder.
There are some potential benefits to this method. For example, authorised users may be issued their own credit card with their name on it, and they can make purchases on the account. However, they generally cannot make changes to the account itself, such as increasing the credit limit or adding more authorised users, and they are not required to make payments on the credit card. The primary cardholder is responsible for payments and changes to the account.
However, there are also potential drawbacks. The primary cardholder will be fully financially responsible for an authorised user's charges, so it may be a good idea to set clear monthly spending guidelines. Additionally, if the relationship between the primary cardholder and the authorised user breaks down, both parties' credit scores may suffer if payments aren't made.
While it is possible to add an authorised user who lives in a different country, this may be more difficult. Some issuers may assume that the authorised and primary users live in the same general area, and having purchases made so close together in different countries may trip up fraud detectors. However, some banks, such as Capital One, issue cards with different numbers, CVVs, etc., which may make it easier to have an authorised user in a different country.
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Building a financial profile
International students in the US may qualify for credit cards, which can offer both convenience and the opportunity to build a US credit history. Building a financial profile as an international student can be challenging, but there are a few steps you can take to get started.
Firstly, it is important to understand the requirements put in place by credit issuers. Most credit card companies will require a Social Security Number (SSN) to open an account, but some do not have this requirement. If you hold an F-1, M-1, or J-1 visa, you can apply for an SSN through the Social Security Administration (SSA). Alternatively, if you are not eligible for an SSN, you can apply for an Individual Taxpayer Identification Number (ITIN) or a visa.
The next step is to start building your credit history. One way to do this is by opening a US bank account, which signals to credit card companies that you have monetary assets in the country. It may also be easier to apply for a credit card with the same bank. You can also establish credit by using new credit-reporting tools, such as UltraFICO™ and Experian Boost, to report positive account activity to credit bureaus, including utility bills, subscriptions, and rent payments.
Another option is to apply for a secured credit card, which is backed by collateral, usually a security deposit from the cardholder. This deposit often serves as the card's credit limit and shields lenders from risk. Secured credit cards can be an excellent credit-building tool and are easier to qualify for than traditional credit cards.
Additionally, international students can become authorised users on someone else's credit card account, which can help build credit history.
Finally, it is important to note that student credit cards are designed specifically for young college students and usually come with benefits such as no annual fees and cashback rewards.
By following these steps, international students can start building their financial profile and work towards accessing the benefits of a US credit card.
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Applying for a secured credit card
International students in the US can apply for a secured credit card, which is a good option for those without a US credit history. This type of card requires a security deposit, which then becomes the cardholder's credit limit. The deposit shields lenders from risk and is usually a couple of hundred dollars. The card can be used like any other credit card, and monthly payments will be reported to a major credit bureau.
To build a credit history, cardholders should keep their credit utilisation low and make timely payments. Most secured credit cards require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to apply. However, some credit card companies do not require an SSN. For example, some companies will accept an ITIN or even a visa.
Before applying for a secured credit card, international students should build a financial profile. They can do this by speaking with their educational institution's international student affairs office, which can inform them of their eligibility to get an on- or off-campus job. This, in turn, determines their eligibility to apply for an SSN. If the student is not eligible for an SSN, they can apply for an ITIN, which can take up to seven weeks to be approved.
It is also possible to open a checking account at a US bank, which tells a credit card company that the applicant has monetary assets in the country. It may also be easier to apply for a credit card with the same bank later on.
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Frequently asked questions
Yes, international students can open a credit card in the USA, but the process is trickier compared to US citizens.
Requirements vary depending on the credit issuer. However, most companies will require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) and a credit history.
You can build your credit history by opening a US bank account, getting a part-time job, signing a lease with a roommate, or putting utility bills in your name.
Some good credit cards for international students include the Capital One Savor Student Cash Rewards Credit Card, the Firstcard® Secured Credit Builder Card with Cashback, and the Zolve Credit Card.
Having a credit card as an international student can help you build your credit score, which is important for future financial needs like student loans, auto loans, or apartment leases. Credit cards can also be useful in emergencies and for earning rewards.
