Janice Lozano
As an international student, getting a credit card can be a challenging process. However, it is not impossible, and there are several options available to help build your credit score. The first step is to build a financial profile by speaking with your educational institution's international student affairs office to determine eligibility for an on- or off-campus job, which will impact your eligibility for a Social Security Number (SSN). If you are not eligible for an SSN, you can apply for an Individual Taxpayer Identification Number (ITIN). Once you have either of these, you can start building your credit score by opening a US bank account or becoming an authorized user on a trusted person's credit card. Student credit cards are specifically designed for college students and offer benefits such as no annual fees and cashback rewards. It is important to compare the options available and choose the best one for your circumstances.
| Characteristics | Values |
|---|---|
| Difficulty | Getting a credit card as an international student can be difficult. |
| Social Security Number | A Social Security Number (SSN) is required by most credit card companies, but some do not have this requirement. |
| Individual Taxpayer Identification Number | If you don't have an SSN, you may be able to apply with an Individual Taxpayer Identification Number (ITIN) instead. |
| Passport | Some credit card issuers may also accept your passport with your application. |
| Student Visa | If you have a student visa, you may be able to use it to help you get an SSN. |
| Credit History | Most credit card companies will only look at an applicant's credit history for the country they're applying in. |
| Secured Credit Card | If you don't have a credit history, you can apply for a secured credit card, which requires a small deposit that becomes your initial credit limit. |
| Credit Builder Loan | You can also apply for a credit builder loan, which helps establish a payment history. |
| U.S. Bank Account | Having a U.S. bank account can assist with approval for a credit card. |
| On-Campus Employment | You may need work authorization, which you can only get via on-campus employment. |
| Co-Signer | You may need an adult co-signer if you're under 21. |
| Student Cards | Student credit cards are designed for college students and offer benefits such as no annual fees and cash-back rewards. |
| Card Issuer | Different card issuers have different requirements and perks. Discover, Capital One, Bank of America, and Deserve offer the best credit cards for international students. |
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What You'll Learn
Requirements for credit cards in the US
International students often face challenges in obtaining a credit card in the US, primarily due to a lack of credit history and US residency. However, there are several options available for international students seeking to acquire a credit card. Here are the key requirements to be aware of:
Social Security Number (SSN)
One of the major requirements for applying for a credit card in the US is an SSN. SSNs are assigned to individuals authorised to work in the US and are used to report wages and determine eligibility for Social Security benefits. If you are an international student on an F-1, M-1, or J-1 student visa and are authorised to work, you can apply for an SSN. To do so, you must have employment in the US and submit Form SS-5 along with documents verifying your work-authorised immigration status, age, and identity.
Individual Taxpayer Identification Number (ITIN)
If you do not have an SSN, some credit card companies may accept an ITIN, which is an IRS tax processing number. You can obtain an ITIN by verifying your identity with the IRS. This option is particularly useful for international students who do not qualify for an SSN.
Secured Credit Cards
Secured credit cards are specifically designed for individuals without an established credit history. These cards require a deposit, which acts as your credit line. Your payments are then reported to the credit bureaus, helping you build a credit history. This option allows international students to access some of the benefits of a traditional credit card while establishing their creditworthiness.
Permanent Address
When applying for a credit card, you will need to provide a permanent address. You can use your school address for this purpose. This requirement is in place due to the US PATRIOT Act, which mandates that all financial institutions implement a Consumer Identification Program (CIP).
Income and Employment
Having a steady source of income can boost your chances of being approved for a credit card. While the specific income requirement varies by card, a minimum monthly income of $800 is typical. Additionally, employment is necessary if you plan to apply for an SSN, which is often a prerequisite for credit card applications.
Credit Score and History
Building a solid credit history is essential in the US, as it impacts your ability to secure housing, utilities, and loans for large purchases. When applying for a credit card, the issuer will likely perform a hard credit inquiry to assess your credit risk. While the required credit score varies by card and issuer, higher scores generally increase your chances of approval for high-limit and high-rewards cards.
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How to build a financial profile
International students can face challenges when trying to get their first credit card, but it is not impossible. Building a financial profile as an international student in the US can be done in several ways.
Firstly, it is important to understand what a financial profile entails. Essentially, it is a record of your financial history and ability, including credit history, income, and assets. For international students, this can be more complicated as they may not have a credit history in the US and may have limited income and assets in the country. However, there are several steps international students can take to build a financial profile.
One of the first steps is to check eligibility for a Social Security Number (SSN). Students with F-1 or other student visas may qualify for an SSN, but they may need to get authorization and have a job lined up first. A part-time job at school or elsewhere may be enough. The international student affairs office at your educational institution can inform you of your eligibility to get an on- or off-campus job, which in turn determines your eligibility to apply for an SSN. Approval for an SSN can take up to four weeks, so it is important to plan ahead.
If you are not eligible for an SSN, you can apply for an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS). This process can take up to seven weeks, so it is important to start the process early. Some credit card issuers let applicants use an ITIN instead of an SSN on card applications.
Another way to build a financial profile as an international student is to open a checking account at a US bank. This demonstrates to credit card companies that the applicant has monetary assets in the country. It may also make it easier to apply for a credit card with the same bank at a later date.
Additionally, international students can start building a credit history by becoming authorized users on a trusted friend's or family member's credit card. This can help both the authorized user and the primary cardholder build good credit if the account is used responsibly.
It is also beneficial to research the requirements of different credit card issuers. Each issuer will have different requirements and perks, so it is important to compare them and choose the best option for your needs. Some issuers may require an SSN, while others may accept an ITIN.
Finally, international students can build their financial profiles by demonstrating their ability to pay expenses. This can be done through bank statements, financial aid letters, scholarship money, or private family funds. Each US college has its own requirements for how international students can prove their financial ability, so it is important to check with your specific institution.
By following these steps, international students can build a strong financial profile and increase their chances of being approved for a credit card in the US.
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Student credit cards
Getting a credit card as an international student can be challenging, but it is not impossible. There are several options available to international students looking to get a credit card in the US, and it is important to do your research and compare the different options available to you.
Firstly, it is worth noting that, while it is not a requirement for every credit card, most credit card companies will require you to provide a Social Security Number (SSN). If you hold an F-1 or J-1 visa, you can apply for an SSN through the Social Security Administration (SSA). However, you will need to have a job lined up first. A part-time job at your school may be enough, and your student advisor should be able to help you with this.
If you are unable to get an SSN, you may be able to apply for an Individual Taxpayer Identification Number (ITIN). To do this, you will need to submit IRS Form W-7 and have a valid tax reason for needing an ITIN, such as being a dependent or spouse of a US citizen. Some credit card companies will accept an ITIN instead of an SSN, including Capital One, which offers the SavorOne Student Cash Rewards Credit Card and the Quicksilver Rewards for Student card, both of which have no annual fee and offer cash-back rewards.
Another option is to become an authorized user on a trusted friend or family member's credit card. This can help both people to build good credit if the account is used responsibly.
If you are unable to get an SSN or an ITIN, you may still be able to get a credit card by opening a US bank account. Having a US bank account shows that you have financial ties to the country, and it may be easier to apply for a credit card with the same bank later on.
Finally, it is worth noting that, while it may be more difficult, it is possible to get a credit card without an SSN or an ITIN. Some credit card issuers may accept your passport with your application, and some student credit cards do not require an SSN.
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Getting a Social Security Number (SSN)
International students can get a Social Security Number (SSN) if they have employment authorization to work in the US. The SSN is a nine-digit number issued to US citizens, permanent residents, and non-residents with authorization to work in the country.
To apply for an SSN, you must first show proof of a job offer/employment eligibility. You will then need to gather the relevant documentation, such as Form I-20 for F-1 students authorized to work in Curricular Practical Training (CPT), and complete the social security application online. After that, visit your local Social Security Administration (SSA) office to show them your documents in person.
It is recommended that new students wait at least 2-3 weeks after arriving in the US before requesting an SSN. The approval process can take up to four weeks. The SSA will mail your number and card as soon as all of your immigration information has been verified, which can take 2-4 weeks or more.
If you are not eligible for an SSN, you may be able to apply for an Individual Tax Identification Number (ITIN) instead. This is a number used for tax purposes, and you can apply for one by submitting IRS Form W-7.
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Individual Taxpayer Identification Number (ITIN)
International students may be able to get a credit card in the US, depending on their circumstances and the credit card issuer's policies. Credit card issuers typically review credit history when evaluating applications. If you don't have a US credit history, it may be more difficult for issuers to assess your creditworthiness. Some issuers also require applicants to have a Social Security Number (SSN).
If you don't have an SSN, you may be able to apply with an Individual Taxpayer Identification Number (ITIN) instead. An ITIN is a tax processing number issued to nonresident aliens (NRAs) by the Internal Revenue Service (IRS). ITINs are nine-digit numbers in the format 9XX-XX-XXXX, beginning with a "9". The IRS issues ITINs to help individuals comply with US federal tax reporting.
To be eligible for an ITIN, you must need to file a tax return because of taxable income (such as some scholarships) but are not eligible for an SSN. SSNs are only issued to nonresidents who are employed. If you are employed or intend to start working soon, you should apply for an SSN rather than an ITIN.
To apply for an ITIN, submit IRS Form W-7, Application for IRS Individual Taxpayer Identification Number. Attach a valid federal income tax return, unless you qualify for an exception, and include your original proof of identity or copies certified by the issuing agency and foreign status documents. You may also apply using the services of an IRS-authorized Acceptance Agent or visit an IRS Taxpayer Assistance Center.
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Frequently asked questions
International students face several challenges when applying for their first credit card. Most credit card companies require applicants to have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Many also require applicants to have a US credit history, which can be difficult for international students to build.
There are several options for international students looking to get a credit card. You can apply for a credit card in your home country before leaving, open a US bank account, or become an authorised user on someone else's account. You can also apply for a credit card with a US bank, although this may be challenging without an SSN or ITIN. If you are not eligible for an SSN, you can apply for an ITIN, although this requires a "valid tax reason".
There are several credit cards tailored to international students, including student credit cards, secured credit cards, and prepaid credit cards. Some good options include the Capital One SavorOne Student Cash Rewards Credit Card and the Capital One Quicksilver Rewards for Student, both of which can be applied for with an ITIN number. Other good options include Chime, Petal, and Deserve.
It's hard to determine what a good interest rate is as an international student. You will need to research and compare the rates of different card issuers. As of December 2019, the average credit card interest rate in the US was 17.30%.
