Lori Meadows
International students often face challenges when applying for credit cards due to their lack of credit history in the country they are studying in. However, building a credit history is crucial for future financial goals, such as renting an apartment, taking out loans, or applying for a mortgage. While the requirements vary across countries and card issuers, international students can generally improve their chances of getting approved for a credit card by obtaining a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), opening a local bank account, or becoming an authorized user on someone else's credit card.
| Characteristics | Values |
|---|---|
| Credit card type | Student credit cards, secured credit cards, prepaid credit cards |
| Application materials | Student visa, Individual Taxpayer Identification Number (ITIN), unexpired identification, Social Security Number (SSN) |
| Eligibility requirements | Proof of identity, proof of enrollment in a US institution, sometimes an ITIN |
| Other requirements | U.S. address, U.S. bank account, proof of income |
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What You'll Learn
Getting a Social Security Number or Individual Taxpayer Identification Number
International students can get a credit card if they have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Here is a detailed guide on how international students can get an SSN or ITIN:
Getting a Social Security Number
International students can apply for a Social Security Number in person at a local Social Security Administration office. It is recommended that students wait at least 2-3 weeks after arriving in the US before requesting an SSN. To apply, students will need to provide certain documents, including:
- A campus employment letter from the hiring department
- An SSN Support letter
- An I-94 card or a copy of the J-1 admission stamp in their passport, along with a printout of the electronic I-94 information
- An employment offer letter from the department/hiring office
- On-campus employment authorization/SSN eligibility letter
- Documentation for employment authorization from the ISS adviser or sponsoring agency
The Social Security Administration will verify the student's immigration information before mailing the SSN and card, which can take around 2-4 weeks.
Getting an Individual Taxpayer Identification Number
International students who are not eligible for an SSN, such as those with "non-service" scholarships or fellowships, can apply for an ITIN. To be eligible for an ITIN, students must have a valid tax reason, as outlined in Form W-7 instructions. Students can use web-based tax preparation software like GLACIER Tax Prep to determine if they need an ITIN and prepare their application. When filing Form W-7, students must submit their original passport or a certified copy. The International Center advises against sending original documents to the IRS, instead recommending a visit to a Taxpayer Assistance Center for document verification.
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Becoming an authorized user on someone else's card
International students can get a credit card by becoming authorised users on someone else's account. This is a good option for those who do not have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). 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. The primary cardholder is responsible for any debts accrued by the authorised user.
Becoming an authorised user on someone else's credit card account can help build a credit history. However, this can be risky for the primary cardholder, who will be financially responsible for all authorised user purchase activity. It is important to set up a spending and payment plan so that neither the original cardholder nor the authorised user ruins their credit. Additionally, not all credit card companies report authorised user activity to credit bureaus, so it is important to call the number on the back of the card to ensure that the company reports to a credit bureau.
Some credit card companies offer cards specifically designed for college students that allow them to earn rewards and build credit with responsible use. For example, Capital One offers student credit cards designed for college students with limited or no credit history. International students who have an ITIN can also access the Capital One Journey Student Credit Card.
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Proving your ability to pay credit card bills
International students face several challenges when seeking credit cards in the US. Most credit card applications require a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). However, international students are unlikely to have a US credit history, making it difficult to prove their creditworthiness. Here are some ways international students can prove their ability to pay credit card bills:
Get a Part-Time Job
If a student's visa qualifies them for a job, a part-time position can help them obtain an SSN or ITIN and demonstrate their capacity to pay credit card bills punctually. This approach not only establishes their eligibility for these identification numbers but also showcases their financial responsibility.
Sign a Lease with a Roommate
Some landlords and rental companies report rent activity to credit bureaus. Signing a lease with a roommate who has a solid credit history can help international students establish their reliability and residency in the US. This strategy is especially useful if the student has no prior credit history.
Put Utility Bills in Your Name
International students can start building a positive financial history by ensuring that utility bills are in their name. This strategy is effective if the utility company reports payments to credit bureaus. It showcases their ability to manage finances and pay bills on time.
Open a US Bank Account
Establishing a monetary base in the US by opening a US bank account is advantageous when applying for a credit card. It demonstrates a source of income and establishes a financial relationship with a bank, increasing the likelihood of credit card approval. Additionally, some banks offer credit cards specifically designed for students, making it easier to obtain their first credit card.
Explore Student Credit Cards
Certain credit cards are tailored for college students, offering rewards and the opportunity to build credit through responsible use. These cards often come with features like security alerts, card lock, and no foreign transaction fees, making them a good choice for international students studying abroad. Examples include the Savor Student and Quicksilver Student cards.
Become an Authorized User
International students can build their credit history by becoming authorized users on a trusted person's credit card. This option allows them to benefit from the primary cardholder's good credit habits, such as timely payments and low credit utilization. However, it's important to ensure that the primary cardholder practices financial discipline, as their actions will impact the authorized user's credit score.
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Opening a US bank account
International students can face challenges when applying for a credit card in the US, particularly if they have a limited credit history in the country. However, there are a few options available to them. One of the most important steps is opening a US bank account, which can increase your chances of being approved for a credit card. Here's a detailed guide on opening a US bank account as an international student:
Choosing a Bank
Not all banks will offer the same services to international students, so it's important to research your options. Some banks may have specific accounts tailored to international students, while others may have more flexible requirements for opening an account. Popular options for international students include Discover, Capital One, Bank of America, Deserve, and Zolve.
Requirements
The specific requirements for opening a US bank account as an international student may vary depending on the bank. However, some common requirements include:
- A valid passport
- A student visa
- Proof of address, which can be your school address
- Basic personal information, such as date of birth and contact details
- In some cases, a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) may be required.
Types of Accounts
When opening a US bank account, you will typically choose between a checking account and a savings account. A checking account is a transactional account that allows you to easily access your funds for everyday expenses. A savings account, on the other hand, is designed for storing money and often earns interest over time. You may choose to open one or both types of accounts, depending on your needs.
Building a Relationship
Once you've opened your US bank account, it's important to establish a positive relationship with your bank. This can include maintaining a good account balance, setting up direct deposits, and demonstrating responsible financial behaviour. This positive relationship can work in your favour when you apply for a credit card with the same bank, as they will be more familiar with your financial situation and may be more likely to approve your application.
Additional Considerations
Keep in mind that the process of opening a US bank account as an international student may vary depending on your specific circumstances and the bank you choose. Some banks may have additional requirements or steps in the account opening process. It's always a good idea to contact the bank directly and inquire about their specific procedures and requirements for international students.
By following these steps and choosing the right bank, international students can successfully open a US bank account, which will not only help them manage their finances during their studies but also pave the way for building a positive financial profile in the country.
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Applying for a student credit card
Step 1: Understand the Requirements
Before applying for a student credit card, it is essential to understand the eligibility requirements. Most credit card companies will require you to provide proof of your student status, such as enrolment documents or a student visa. Additionally, you may need to meet specific age criteria, usually requiring you to be at least 18 years old. Some credit card issuers may also ask for additional documentation, such as proof of income or a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
Step 2: Build Your Creditworthiness
Credit card issuers often assess your creditworthiness before approving your application. This can be challenging for international students who may not have an established credit history in the country where they are studying. To build your creditworthiness, consider opening a U.S. bank account and establishing a positive financial record. You can also explore credit-building tools, such as UltraFICO™ and Experian Boost, to report positive account activity, including utility bills and rent payments, to credit bureaus.
Step 3: Explore Different Card Options
Research and compare different student credit card options offered by various financial institutions. Some cards may be specifically designed for international students, offering features such as no account minimums, no interest, and no overdraft fees. Look for cards that align with your financial needs and goals, whether it's earning rewards, building credit, or enjoying travel benefits.
Step 4: Complete the Application Process
Once you've found a suitable student credit card, carefully review the application process and requirements. Gather all the necessary documentation, including proof of identity, student status, and income information. Some credit card companies may allow you to apply online, while others may require you to visit a branch or submit documents via mail. Make sure to read the terms and conditions carefully before submitting your application.
Step 5: Practice Responsible Credit Usage
If your application is approved and you receive your student credit card, it's essential to use it responsibly. This means making timely payments, staying within your credit limit, and maintaining a good credit history. Remember that using your credit card wisely can help build your creditworthiness over time, making it easier to access other financial products and opportunities in the future.
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Frequently asked questions
International students can get a credit card in the US by applying for a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). They can also open a US bank account or become an authorized user on someone else's account.
Some credit card options for international students in the US include the Capital One Savor Student Cash Rewards Credit Card, the Capital One Quicksilver Student Cash Rewards Credit Card, the Firstcard® Secured Credit Builder Card with Cashback, and the Zolve Credit Card. Students with F-1 visas may qualify for an SSN and can consider the Discover It Student Card.
Getting a credit card as an international student in the US can help build a US credit history, which is valuable for future financial needs such as student loans, auto loans, or apartment leases. It can also be useful for managing expenses and emergencies.
