Ibrahim Gardner
International students can get a US credit card, but it may be challenging. While most US credit card companies require applicants to have a Social Security Number (SSN), some accept an Individual Taxpayer Identification Number (ITIN) or even a visa. Citibank and Capital One are among the banks that offer credit cards to international students, with the latter allowing applicants to use their ITIN. International students can also build their credit history by getting a secured credit card, which requires a deposit that acts as the credit limit, or by becoming an authorized user on someone else's account.
| Characteristics | Values |
|---|---|
| Difficulty in getting a credit card as an international student | High |
| Ways to get a credit card as an international student | Getting an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN), opening a U.S. bank account, or becoming an authorized user on someone else's account |
| Credit card companies that offer credit cards for international students | Discover, Capital One, Bank of America, and Deserve |
| Average credit card interest rate in the US (as of December 2019) | 17.30% |
| Importance of a good credit score | Helps in getting a job, renting an apartment, or applying for a mortgage |
| Tools to establish credit | UltraFICO and Experian Boost to report positive account activity to credit bureaus |
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What You'll Learn
Credit cards for international students
International students in the US may be able to get a credit card, depending on their circumstances and the credit card issuer's policies. Credit card issuers typically review credit history when evaluating applications, so it may be more difficult for issuers to assess your creditworthiness if you don't have a US credit report or have a thin credit file.
Some credit card issuers provide cards exclusively for students that only require a passport for the application. This can be a good option for students who don't plan on staying in the US long-term but want to build their credit. If you already have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you should be able to apply for most credit cards. Students with F-1 or other student visas may qualify for an SSN, but you may need to get authorization and have a job lined up first. A part-time job at your school may be enough, and your student adviser may be able to help. If you can't get an SSN, you may be able to request an ITIN from the Internal Revenue Service (IRS) instead. Some credit card issuers let applicants use an ITIN on card applications.
If you are unable to get a credit card in the US, you can see if a trusted friend or family member will add you to their existing credit card as an authorized user. This can help build your credit, but you should set up a spending and payment plan to ensure neither the original cardholder nor the authorized user ruins their credit.
If you are approved for a credit card, you have to use it responsibly over time to build good credit. This includes maintaining a good payment history, managing your spending, understanding fees, and regularly checking your statements.
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Building a credit score
- Get a Social Security Number (SSN): Although it is not necessary to have an SSN to build credit in the US, it can make the process easier. If you have authorization to work in the US, even temporarily, you will be issued an SSN.
- Apply for a Credit Card: One of the most effective ways to build credit is to get a credit card and make regular, timely payments. However, it can be difficult for international students to get approved for a credit card without a credit history or an SSN. Some options for international students include:
- Secured Credit Cards: These cards require a deposit, which becomes the cardholder's credit limit. Secured credit cards can be used like regular credit cards, and timely payments will help build your credit score. Most secured credit cards require an SSN or Individual Taxpayer Identification Number (ITIN) to apply.
- Authorized User on Someone Else's Credit Card: Becoming an authorized user on a friend or family member's credit card can help you build your credit score. However, any negative impact on the primary cardholder's credit will also affect your score, so it is important to establish clear spending and payment plans.
- Report Your Rent: In the US, rent payments are not automatically reported to credit bureaus. However, Experian's RentBureau allows you to register and set up electronic rent payments, which can boost your credit score if you make timely payments.
- Store Credit Cards: Store credit cards are typically easier to obtain than traditional credit cards. Using these cards and making timely payments can help build your credit score. However, store credit cards usually have lower credit limits, and minor purchases can negatively impact your credit utilization ratio.
- Credit-Builder Loans: Also known as starter loans, these loans are designed to help individuals build their credit.
It is important to remember that building credit takes time, and the length of your credit history is a significant factor in achieving a higher credit score. Additionally, always aim to make timely payments, keep your credit utilization low, and manage your finances effectively to build and maintain a good credit score.
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Getting a Social Security Number (SSN)
International students with F-1 or other student visas may qualify for a Social Security Number (SSN). However, they may first need to get authorization and have a job lined up. A part-time job at school may suffice. Students can also seek guidance from their student advisor or school's international student services office. If students are unable to obtain an SSN, they may request an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS).
To apply for an SSN, international students must present their foreign birth certificate or a current or previous passport, school records, employment records, or any other documents that demonstrate long-term residence outside the United States. They may also need to provide copies of their tax records or information about the schools they attended in the US. Applicants aged 12 or older must appear in person for an interview and submit to an identity check. Acceptable documents for identity verification include a current (not expired) passport, driver's license, or any government-issued identification card that includes their name, identifying information (date of birth or age), and preferably a recent photograph.
International students can initiate their SSN application online and then visit a local Social Security office to furnish the necessary documentation. Alternatively, they may apply using Form I-765 or I-485 through the United States Citizenship and Immigration Services (USCIS). If approved, they will receive their SSN card within 7 to 10 business days after obtaining their Employment Authorization Document (EAD) or I-551 (Green Card) from USCIS. The card will be mailed to the address provided on the application.
It is important to note that individuals assigned an SSN for non-work purposes cannot use it for employment. Social Security will notify the Department of Homeland Security (DHS) if the number is used for work.
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Secured credit cards
International students in the US can get a credit card, but it can be difficult. Most credit card applications require a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). However, international students often don't have an SSN or ITIN, and they may not have a credit history in the US.
One option for international students without a US credit history is to apply for a secured credit card. Secured credit cards require a deposit, which becomes the cardholder's credit limit. The card can be used like any other credit card to make purchases that don't exceed the credit limit. Monthly payments will be reported to one of the major credit bureaus. Cardholders should keep their credit utilization low and make on-time payments to build their credit scores. Most secured credit cards require an SSN or ITIN to apply. However, some banks will allow applicants to become authorized users on someone else's credit card account without an SSN or ITIN.
One example of a secured credit card for international students is the Firstcard® Secured Credit Builder Card with Cashback*. This card has a low annual fee and offers perks such as earning cashback on eligible purchases and a competitive APY on secured deposits. To qualify, you'll need to open a checking account, and your spending limit will be equal to the balance in your deposit account.
Other options for international students to build credit include becoming an authorized user on a trusted person's credit card or taking out a credit-builder loan. Additionally, students with F-1 or other student visas may qualify for an SSN if they have a part-time job or can get authorization.
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Credit card interest rates
International students can get a US credit card, but it can be difficult. The best options for international students looking to get a US credit card include:
- Getting an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN). Most applications will require an SSN, but some issuers will accept an ITIN or even a visa.
- Opening a US bank account. This can help prove a source of income, which is a big part of getting approved for a credit card. It may also be easier to apply for a credit card issued by the bank where you have an account.
- Becoming an authorized user on someone else's account. This may be a risky option for the original cardholder, who will be financially responsible for all authorized user purchase activity.
- Applying for a secured credit card. This type of card requires a deposit that becomes the cardholder's credit limit. The card can be used like any other credit card to make purchases that don't exceed the credit limit.
There are several ways to build or improve one's credit score:
- Responsible credit use: Always pay bills on time and keep credit utilization below 30% of credit lines.
- Choose a new line of credit that doesn't require a high credit score or extensive history, such as a secured credit card or a credit-builder loan.
- Add a trusted person as an authorized user on your credit card account, allowing you to benefit from their credit history on your report.
- Establish credit with new credit reporting tools: Once you have a US bank account, you can use tools like UltraFICO and Experian Boost to report positive account activity to credit bureaus.
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Frequently asked questions
Yes, international students can get a US credit card, but they may need to meet certain requirements. These may include having a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), opening a US bank account, or becoming an authorized user on someone else's account.
Some recommended credit cards for international students include:
- Capital One Savor Student Cash Rewards Credit Card
- Capital One Quicksilver Student Cash Rewards Credit Card
- Firstcard® Secured Credit Builder Card with Cashback
- Discover Student Card
- Citibank Student Card
Having a US credit card as an international student can help build a positive US credit history, which can be valuable for future financial needs such as student loans, auto loans, or apartment leases. It can also provide convenience and purchasing power in the US, and serve as a good backup plan for emergencies.
