Ibrahim Gardner
International students face several challenges when seeking credit-building opportunities in the United States. One major hurdle is that most credit card applications require a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), and not many international students are eligible for these. Another challenge arises from having a limited or non-existent US credit history, which can make it difficult to get approved for a credit card. To overcome these obstacles, international students can explore alternative options such as becoming an authorized user on an existing US credit account. This allows them access to credit without the need for an SSN, ITIN, or credit score. However, it is important to carefully consider the risks involved and ensure good credit habits by the primary cardholder.
| Characteristics | Values |
|---|---|
| Difficulty in getting a credit card | Yes |
| Options for getting a credit card | Use SSN/ITIN to apply for a US student credit card; Apply for US student credit cards that only require a passport; Act as an authorized user on an existing US credit account; Apply for secured credit cards or secured loans; Get a part-time job on campus to increase income and qualify for better credit card terms |
| Benefits of a credit card | Essential for those planning to stay in the US long-term; Helpful for purchasing a car, taking out a mortgage, or applying for a loan; Useful for building a credit history |
| Becoming an authorized user | A simpler way to access credit without an SSN, ITIN, or credit score; Becoming an authorized user on someone else's credit card account may preclude the need for an SSN or ITIN with some banks; As an authorized user, you aren't responsible for paying off the primary cardholder's charges, but your credit score will be impacted by their activity |
| Requirements for a credit card | Credit history (or at least a co-signer) and an SSN or ITIN; Students with F-1 or other student visas may qualify for an SSN with authorization and employment |
| Impact of international student status | Majority of credit card applications require an SSN or ITIN, which many international students won't have; Limited or no US credit history can make it difficult to get approved |
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What You'll Learn
- International students can become authorized users without an SSN or ITIN
- Becoming an authorized user is a way to build credit history
- Credit card companies may not report authorized user activity to credit bureaus
- International students can use their student visa to help them get an SSN
- Becoming an authorized user on a US credit account is a simpler way to access credit
International students can become authorized users without an SSN or ITIN
International students face several challenges when seeking credit-building opportunities in the United States. Most credit card applications require a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), and not many international students are eligible for these.
However, international students can become authorized users on an existing US credit account without an SSN or ITIN. Becoming an authorized user is a simpler way to gain access to credit. As an authorized user, you can benefit from building a credit history without needing an SSN or ITIN. The primary cardholder's activity is included as part of your credit history, including their payment history and balances. If the primary cardholder practices good credit habits, such as paying on time and maintaining a low credit utilization rate, your credit score will also increase.
While some banks may require an SSN or ITIN for authorized users, this is not always the case. For example, Chase credit cards only require the name of the authorized user and their address, and there is no separate account for the authorized user.
It is important to note that becoming a co-signer or a primary cardholder with an authorized user can be risky. It is recommended to have a conversation with the primary cardholder about responsibility for the credit card and how payments will be made to avoid any issues.
Additionally, while international students can build their credit history as authorized users, it is essential to remember that not all credit card issuers report authorized users' activity to credit bureaus. Therefore, it is advisable to call the number on the back of the card to ensure that the credit card company reports authorized user activity to a credit bureau.
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Becoming an authorized user is a way to build credit history
International students can face challenges in obtaining a credit card in the United States due to the lack of a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). However, becoming an authorized user on an existing US credit account is a viable option to build a credit history. This method simplifies the process of gaining access to credit without the need for an SSN, ITIN, or an extensive credit history.
Being an authorized user means being added to a primary cardholder's credit card account. The credit card company will issue a card with the authorized user's name on it, but the primary user is responsible for paying any charges incurred. This strategy is particularly beneficial for new credit users or those with a thin credit file, helping them establish a credit history and improve their credit score. It is important to remember that the primary account owner should have good credit management habits and a solid credit score for this to be effective.
Before becoming an authorized user, it is advisable to request to review the primary user's credit report to ensure a positive credit history. Additionally, establishing clear ground rules with the primary cardholder is essential to manage the account wisely and avoid unintentionally excessive balances. By becoming an authorized user on a well-managed credit card account, international students can take advantage of this opportunity to build their credit history and improve their financial standing in the United States.
Furthermore, international students can also explore other options to build their credit history. These include applying for secured credit cards, credit-builder loans, or US student credit cards that require only a passport. Working a part-time job on campus can also boost income and improve the chances of credit card approval. By exploring these options, international students can establish a solid financial foundation during their time in the United States.
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Credit card companies may not report authorized user activity to credit bureaus
International students can gain access to credit by becoming authorised users on an existing US credit account. This can be a simpler way to gain access to credit without a Social Security Number, Individual Taxpayer Identification Number, or credit score.
While becoming an authorised user can be a good way to build credit, it's important to note that not all credit card companies report authorised user activity to credit bureaus. Some card issuers may not report any authorised user activity. Even when they do, the credit bureaus might not include it in the authorised user's credit report if the user is under a certain age or if there is negative information on the primary account.
Some card issuers that do report authorised user activity to the credit bureaus include Discover, Wells Fargo, and American Express. However, they each have their own requirements for reporting. For example, Discover and Wells Fargo require authorised users to be at least 18 years old, while American Express only requires users to be at least 13.
It is important to carefully consider the potential risks and benefits before becoming an authorised user on someone else's credit card account. While it can help build credit, it is essential to remember that late payments or high credit utilisation by the primary account holder can negatively impact the authorised user's credit score.
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International students can use their student visa to help them get an SSN
International students can use their student visa to help them get a Social Security Number (SSN). An SSN is a 9-digit employee identification number issued by the US Social Security Administration (SSA). Eligibility for an SSN is based on a person's eligibility to work in the US. Those eligible include US citizens, permanent residents, and qualified foreign nationals, including, in certain circumstances, students in F-1 or J-1 student status.
F-1 students must provide evidence of lawful F-1 employment, such as an on-campus job or authorization for curricular practical training (CPT) or optional practical training (OPT). If you are an F-1 student and do not have lawful F-1 employment, you are ineligible to apply for an SSN. J-1 students are required to show evidence of employment and must be in valid J-1 status and be registered for a full course of study. J-1 students under the sponsorship of an external organization should obtain a Social Security letter from their sponsor.
To apply for an SSN, you must first obtain valid employment authorization. You can expect to receive your SSN within 4-6 weeks, although processing times may vary. If you are a J-1 student under the sponsorship of a J-1 exchange visitor program requesting an SSN based on on-campus employment, you must submit a letter to the Office of International Students and Scholars (OISS). The OISS will issue a second letter to confirm that you have secured on-campus employment and that you are a full-time student in good standing.
International students can also apply for a US credit card, which usually requires an SSN or Individual Taxpayer Identification Number (ITIN). However, becoming an authorized user on an existing US credit account is a simpler way to access credit without an SSN, ITIN, or credit score.
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Becoming an authorized user on a US credit account is a simpler way to access credit
International students can face challenges when applying for their first US credit card. While it is possible for international students to get a credit card in the US, it often depends on their circumstances and the credit card issuer's policies. One of the biggest hurdles is the requirement for a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) to apply, which international students may not have. Additionally, having a positive credit history may also be necessary for approval.
A simpler way for international students to access credit is to become an authorized user on a US credit account. This option does not always require the authorized user to have an SSN or ITIN, and it can help them build their credit score. However, it is important to remember that the primary cardholder is financially responsible for all authorized user purchase activity. Therefore, it is wise for both parties to establish a spending and payment plan to ensure neither the original cardholder nor the authorized user ruins their credit.
To become an authorized user, international students can ask a trusted friend or family member in the US to add them to their credit card account. Some credit card issuers, such as Capital One, will report the payment history of the credit card to credit bureaus for both the cardholder and the authorized user, which can help build good credit for both parties. However, it is not guaranteed that all issuers will report this activity, so it is important to check with the specific issuer.
While becoming an authorized user is a straightforward way for international students to access credit, it may not be the right choice for everyone. It requires finding someone willing to take on the risk and trusting them to practice good credit habits, such as paying on time and keeping their credit utilization low. Additionally, there may be high fees, interest charges, or penalties associated with credit card use. Nevertheless, for those international students who know someone willing to add them as an authorized user, it can be a useful way to build their credit history and access the conveniences of credit card ownership.
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Frequently asked questions
Yes, international students can be added as authorized users to someone else's credit card. This allows them to build their credit history and credit score without needing a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). However, it is important to note that not all credit card companies report authorized user activity to credit bureaus, so it may not always impact the user's credit score.
As an authorized user, the primary cardholder's activity is included in your credit history, including their payment history and balances. If the primary cardholder practices good credit habits, such as paying on time and maintaining a low credit utilization rate, your credit score can increase. However, if the primary cardholder misses payments or carries a high balance, it can negatively impact your score.
International students can explore a few options to obtain a credit card. They can apply for a secured credit card, which requires a deposit that becomes the cardholder's credit limit and allows them to build their credit history. They can also apply for student credit cards, which are designed for college students with limited or no credit history and can help build credit with responsible use. Additionally, international students can consider getting an ITIN or SSN, which may be required for some credit card applications.
