Opening A Credit Card In The Usa As An International Student

International students in the US may find it challenging to obtain a credit card due to the lack of a Social Security Number (SSN) or credit history. However, a credit card can be a useful tool for building credit and is essential for establishing a line of credit. While most credit card companies require an SSN, some accept alternative forms of identification, such as an Individual Taxpayer Identification Number (ITIN) or a student visa. International students can also consider secured credit cards, which require a security deposit, or become authorised users on someone else's account. Additionally, opening a US bank account and establishing a financial profile can improve the chances of approval.

Getting an SSN or ITIN as an international student

As an international student in the USA, you may be eligible for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). These are useful to have if you plan to open a credit card account, as most credit card companies will require you to get an SSN, although some will accept an ITIN or even just your visa.

To be eligible for an SSN, you must be authorized to work in the US. This can include on-campus work, Curricular Practical Training (CPT), or OPT. You will need to show the Social Security Administration that you are eligible to work in the US and complete the social security application online. You will then need to visit your local SSA office to show them your documents in person. This process can take 3-4 weeks.

If you are not eligible for an SSN, you can apply for an ITIN. This is issued by the Internal Revenue Service (IRS) and is for international students who are not eligible for an SSN but need to file a US tax return. You can apply for an ITIN in person at the local IRS Taxpayer Assistance Center. This process can take around seven weeks.

It is important to note that your SSN should be kept confidential, as anyone with access to it can open credit cards in your name.

Opening a US bank account

International students can open a US bank account, and it is recommended as a first step to getting a credit card. Having a US bank account is a positive signal to lenders and can make it easier to apply for a credit card. It also establishes a monetary base in the US and can help build a financial profile.

To open a US bank account, international students will need a visa, Individual Taxpayer Identification Number (ITIN) and unexpired identification. It is also possible to open a US bank account before arriving in the country. For example, Zolve offers US bank accounts and credit cards to students before they set foot in the US.

Opening a checking account at a US bank is a good way to tell a credit card company that the applicant has monetary assets in the country. It is also possible to use tools like UltraFICO™ and Experian Boost to report positive account activity to credit bureaus, which can help boost a credit score.

International students may also want to consider getting a job, as this will qualify them for a Social Security Number (SSN) or ITIN, and prove they can pay their credit card bill.

Building a credit history

International students can face several challenges when seeking credit-building opportunities in the US. One of the major requirements for a credit card application is a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). However, international students are often not eligible for an SSN as it requires work authorization, which can be difficult to obtain.

Despite these challenges, there are several ways international students can start building their credit history in the US:

Get an SSN or ITIN

Although obtaining an SSN can be challenging, it is not impossible. International students with an F-1, M-1, or J-1 student visa who are authorized to work in the US can apply for an SSN. Additionally, those with a letter of authorization from their school or future employer can also apply. If you are not eligible for an SSN, you may be able to obtain an ITIN, which follows the same nine-digit format.

Open a US Bank Account

Opening a checking account at a US bank is a positive signal to lenders and can increase your chances of being approved for a credit card. It establishes that you have monetary assets in the country and demonstrates your financial responsibility. It may also be easier to apply for a credit card issued by the same bank, as the established financial relationship can work in your favor.

Build a Financial Profile

Before applying for a credit card, international students should focus on building a financial profile. This includes finding out their eligibility for on- or off-campus jobs, which determines their eligibility for an SSN. Additionally, putting utility bills in their name can help build a responsible financial history, especially if the utility company reports payments to credit bureaus.

Explore Credit-Building Tools

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

Consider a Secured Credit Card

A secured credit card is a great option for those with no credit history. It functions like a traditional credit card but requires a one-time, refundable security deposit to open an account. This deposit serves as collateral and often becomes your credit limit, shielding lenders from risk. Over time, responsible use of a secured credit card can help establish and build your credit history.

Become an Authorized User

If you cannot qualify for a traditional credit card on your own, becoming an authorized user on someone else's account can be a workaround to gaining access to credit. This can be a trusted loved one's credit card account, and responsible use can help build good credit for both the primary cardholder and the authorized user.

While building credit as an international student in the US can be challenging, following these steps can help you establish and improve your creditworthiness over time.

Using a secured credit card

International students can face several challenges when applying for their first credit card in the USA. One of the biggest challenges is that most credit card applications require a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). Obtaining an SSN can be difficult because it requires work authorization, which may only be possible through on-campus employment.

A secured credit card can be a good alternative for international students who don't have an SSN or ITIN. A secured card is backed by collateral, usually a security deposit from the cardholder, which serves as the card's credit limit. This deposit shields lenders from risk and makes it easier for those with low income to qualify. The card can be used like any other credit card to make purchases that don't exceed the credit limit, and monthly payments will be reported to a credit bureau to help build a credit score.

While some secured credit cards require an SSN or ITIN, there are options available for those without one. For example, becoming an authorized user on someone else's credit card account can preclude the need for an SSN or ITIN with some banks. Additionally, some banks are willing to waive the SSN requirement, and international students can also explore options with third-party service providers, such as Nova Credit, which offers additional ways to evaluate applications.

It's important to note that, as an international student, building a financial profile and credit history can be challenging. In addition to exploring secured credit cards, other options to build a financial profile include opening a U.S. bank account, putting utility bills in your name (if the utility company reports payments to credit bureaus), and signing a lease with a roommate who has good credit history.

Becoming an authorised user on someone else's account

International students can get a US credit card, but it can be difficult to get approved. One option is to become an authorised user on someone else's account. This allows you to build a credit history, which is essential for many things in the US, such as securing housing and utilities, and can be beneficial when applying for a job, renting an apartment, or applying for a mortgage.

To become an authorised user, you need to know someone who is willing to add you to their existing credit card account. This can be a trusted family member or friend. The primary cardholder should understand that they are chiefly responsible for any debts you accrue as an authorised user. It is also important to note that the primary cardholder's activity, including their payment history and balances, will be included as part of your credit history. Therefore, it is wise to set up a spending and payment plan to ensure neither the original cardholder nor the authorised user ruins their credit. Additionally, you should call the number on the back of the card to ensure that the credit card company reports authorised user activity to a credit bureau.

As an authorised user, you will receive a credit card with your name on it, and any expenses made will be charged to the account owner. Some credit card companies may report the payment history of the credit card to credit bureaus for both the cardholder and the authorised user. This can be beneficial for building your credit score, but only if the primary cardholder practices good credit habits like paying on time and keeping their credit utilisation low.

Becoming an authorised user on someone else's credit card account can preclude the need for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) with some banks. Usually, an SSN is required to apply for a credit card, and it is assigned to people who are authorised to work in the US. However, international students can obtain an SSN if they have a job lined up or are on an F-1, M-1, or J-1 student visa and are authorised to work in the US. Alternatively, students can request an ITIN through the Internal Revenue Service (IRS), which some credit card issuers will accept for credit card applications.

Frequently asked questions