Douglas Olsen
International students face challenges when it comes to getting a credit card in the US, primarily due to their lack of a Social Security Number (SSN) or credit history. However, there are several options available for international students to obtain a credit card. These include becoming an authorized user on someone else's credit card, applying for a secured credit card or loan, or obtaining a credit card that does not require an SSN, such as those offered by Citibank and Zolve. Additionally, international students can work part-time jobs to increase their income and qualify for better credit card terms, as well as build their credit history by paying utility bills and rent on time.
| Characteristics | Values |
|---|---|
| Credit card options for international students | Getting a credit card as an international student can be difficult, but there are options available. International students can consider getting a credit card from their home country or applying for a student credit card in the US. |
| Student credit cards in the US | Some US credit cards are designed for students and may be a good option for international students. These include cards from Capital One, Citibank, and Chase Bank. |
| Requirements for US credit cards | Most US credit cards require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for applications. However, some issuers accept a passport or student visa. |
| Building credit history | International students can build a US credit history by using a credit card responsibly, paying bills on time, and reporting positive account activity. |
| Authorized user | Becoming an authorized user on a trusted person's credit card is another way for international students to access credit and build their credit history. |
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What You'll Learn
International students without a Social Security Number (SSN)
International students in the US often face challenges when it comes to accessing credit cards. While a Social Security Number (SSN) is typically required to apply for a credit card, there are options available for those without one.
Firstly, international students can apply for an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS). This number can be used in place of an SSN when applying for a credit card. Most international students are eligible for an ITIN, and it can be a useful first step in building a credit history in the US.
Some credit card companies, such as Zolve, Deserve Edu Mastercard, and Capital One, offer credit cards specifically tailored to international students without SSNs. These cards often have benefits like no annual fees and cashback rewards. International students can also consider applying for a secured credit card, which requires a cash deposit as collateral but helps build credit history. Additionally, students can use their credit cards from their home country, although this may come with high fees and may not help build US credit history.
Another option is to become an authorized user on a friend or family member's credit card, as long as the creditor reports to credit bureaus. This can be a way to start building a credit history, but it's important to ensure timely payments to maintain a positive credit score.
It is worth noting that some international students may be eligible for an SSN if they have a visa class that allows them to work legally, such as an F-1 or M-1 status. In such cases, they can apply for an SSN online, which may increase their chances of getting a credit card.
Overall, while it may be challenging, international students without an SSN can access credit cards and build their credit history in the US through alternative options. These options can provide financial flexibility and security during their studies and help them establish their financial future in the country.
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Getting a credit card from your home country
International students can get credit cards, but it can be a difficult process. One way to get a credit card as an international student is to get one from a bank in your home country. International banks can provide MasterCard, American Express or VISA brand cards, all of which can be used in the U.S. However, if you plan to stay in the U.S. after your studies, you may want to build credit history in the U.S. through a credit card issued by a U.S. bank.
Before applying for a credit card in your home country, it is important to research the requirements put in place by the credit issuer. The requirements for each credit issuer vary. For example, most credit card companies in the U.S. will require you to provide a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). However, some do not have this requirement. Citibank, for instance, offers student credit cards that do not require an SSN.
If you are unable to get a credit card in your home country, you can try to become an authorized user on a trusted friend's or family member's credit card. This allows you to build your credit history as an authorized user. However, it is important to note that the primary cardholder's activity is included in your credit history, so it is crucial to ensure that they practice good credit habits.
Additionally, international students can consider applying for secured credit cards or credit-builder loans to establish and build their credit history. These options may have lower barriers to entry and can help improve your chances of approval for other credit cards in the future.
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Student credit cards
International students can get credit cards, which can help them establish a US credit score. This may allow them to apply for loans and financing, and improve their qualifications for renting a home and applying for a job.
Most credit cards require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for their applications. However, some credit card issuers provide cards exclusively for students that only require a passport and visa to apply. 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.
Students can also become authorised users on an existing US credit account, which can help build their credit history. Additionally, getting a part-time job can increase their income and qualify them for better credit card terms and rewards programs.
There are several credit cards designed for students, such as those offered by Capital One, Bank of America, and Mastercard. These cards often come with features like security alerts, card lock, no foreign transaction fees, and various cash-back rewards.
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Building a credit history
International students can face challenges when applying for their first credit card in the US. While it is not mandatory to have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), most credit card companies will require one or the other. Citibank, for example, offers student credit cards that do not require an SSN. Capital One is another credit card issuer that allows you to apply with an ITIN.
If you don't have an SSN or ITIN, there are still ways to build a credit history. Here are some options for international students to build their credit score:
- Secured credit cards: Secured credit cards are a good option for international students without a US credit history. They require a deposit, which becomes the cardholder's credit limit, and can be used like a regular credit card. Monthly payments are reported to major credit bureaus, helping build your credit score.
- Authorized user: Becoming an authorized user on someone else's credit card account can help you build credit without needing an SSN or ITIN. However, this can be risky for the original cardholder, who is financially responsible for all authorized users. It is important to set up a spending and payment plan to ensure neither party ruins their credit score.
- Credit builder loan: Taking out a credit builder loan can help you build your credit score. It is important to make regular payments to show lenders that you are responsible and will be a suitable applicant for future loans or credit options.
- Local bank account: Opening a local bank account is critical to establishing your credit profile in the US. Maintaining an account demonstrates financial history and stability, making it more likely for the bank to offer you credit in the future.
- Rent reporting: Rent payments are not automatically reported on your credit report, but they can impact your credit score. Making regular, timely rent payments can help prove your financial stability and build your credit history.
- Utility payments: Similarly, making regular, timely payments on utility bills such as gas, electric, phone, and internet can help build your credit score. These payments are reported to credit bureaus and contribute to your credit history.
While it may be challenging, it is possible for international students to build a solid credit history in the US. By using a combination of these strategies, international students can establish their financial stability and appeal to lenders in the future.
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Becoming an authorized user on someone else's credit card
International students may face challenges in obtaining a credit card due to limited credit history or lack of a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). One option to overcome this is to become an authorized user on someone else's credit card. Here are some key points to consider regarding this option:
Becoming an Authorized User:
An authorized user is an additional cardholder on someone else's credit card account. The primary cardholder, typically a trusted friend or family member, adds the authorized user to their existing credit card account. The authorized user receives a credit card with their name on it, linked to the primary cardholder's account. This allows the authorized user to make purchases as if the card were their own. However, it's important to note that the authorized user is not the primary account holder and may not have all the privileges, such as making account changes or adding more authorized users.
Benefits and Risks:
Becoming an authorized user can help build or boost your credit score. If the primary cardholder has good or excellent credit and makes timely payments, your credit score can benefit from being linked to their account. However, it's a two-way street—late payments or high credit utilization by the primary cardholder can negatively impact your credit score as well. Therefore, it's crucial to select a primary cardholder who practices healthy credit habits and maintains a low credit utilization rate.
Card Options and Requirements:
Several credit card issuers offer cards that don't charge authorized user fees, such as the Chase Sapphire Preferred® Card, Capital One Venture Rewards Credit Card, and Citi Double Cash® Card. When adding an authorized user, the primary cardholder typically needs to contact the issuer and provide information such as the authorized user's name, birthday, and Social Security Number. Some issuers may have specific requirements, such as a minimum age for the authorized user.
Building Credit Alternatives:
While becoming an authorized user is a viable option, international students can also explore other ways to build their credit history. These include applying for student credit cards, secured credit cards, or credit-builder loans, increasing income through part-time jobs, and using new credit reporting tools like UltraFICO™ and Experian Boost to report positive account activity.
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Frequently asked questions
Yes, international students can get a credit card in the US.
The requirements to get a credit card as an international student include having a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). Some credit card issuers may also accept your passport with an application.
International students can build their credit history by getting a part-time job, becoming an authorized user on a trusted person's credit card, or applying for a secured credit card.
Benefits of having a credit card as an international student include building a credit history, managing expenses, earning rewards, and having a financial safety net for emergencies.
