Can New Immigrants Get a Credit Card?
Obtaining credit cards may be difficult for immigrants to the US. Some immigrants come from nations where credit cards are less widely used, so it’s possible that their credit histories have not been generated and reported to U.S. credit bureaus. Some immigrants might lack some of the paperwork required to apply for specific credit cards.
Newcomers to the country, however, may be eligible for a credit card if they meet the standards of the credit card provider. While applying for credit cards, recent immigrants should bear the following things in mind:
Read More About Immigration Credit Cards
- It is not necessary for newly arrived immigrants to be citizens to be eligible for credit cards.
- Although though some credit cards may require an ITIN, some will allow applications from immigrants without a Social Security number (ITIN)
- A secured credit card or a student credit card may be available to immigrants who are not eligible for a conventional credit card.
What is required for an immigrant to apply for a credit card?
Knowing the procedures will make applying for a credit card as an immigrant easier, even though it may be challenging for non-U.S. citizens to be approved for one in the U.S.
Credit Report
When determining whether to approve you for a credit card, U.S. credit card companies take into account both your credit report and credit score. The total amount of debt you currently owe, your payment history, and other criteria all go into determining your credit score.
Yet, due to variations in credit reporting systems between other nations, recent immigrants might not yet have a U.S. credit score. You might not have any credit history in the US credit reporting system if you don’t already have a credit card or other credit account in your name that has been open for at least six months. Examples of such accounts include car loans and home loans.
You can get a free credit report to see what’s listed on your credit history in the United States. Building a credit history is a crucial first step for immigrants who want to integrate into the American financial system.
ITIN or social security number (SSN)
It is possible to apply for some credit cards without a social security number, even though most credit card issuers require one to confirm your identification and run a credit history check. Even immigrants without either of these numbers may be able to apply for some credit cards since some credit card applications may take an Individual Taxpayer Identification Number (ITIN) instead of a social security number.
How foreigners, non-citizens, and international students can obtain credit cards
Immigrants may find it difficult to obtain credit cards, yet doing so can be a crucial step in securing your financial future in the United States.
There are various ways for newcomers to the United States to get a credit card. The options are determined by the individual’s financial circumstances. The following are a few of the more popular credit card choices for immigrants:
Get approval to use
Being an authorized user on someone else’s credit card is one way to start building credit. Most credit card companies will accept foreigners as authorized users if they have social security numbers, while some companies may even accept foreigners without social security numbers. Remember that if the primary cardholder on this account, who is generally a family member or friend, misses payments, that bad credit history may also appear on the credit report of the authorized user.
Safe credit cards
Consider applying for a secured credit card if you don’t have any U.S. credit history or if it’s bad and you can’t be approved for an unsecured card. One true credit card that needs a refundable deposit is the Discover it® Secured Credit Card.
Up to the approved credit limit, you get to pick the deposit amount. Generally speaking, prepaid and debit cards cannot help you establish credit history with the three major credit agencies, but using the Discover It® Secured Credit Card can. After six straight on-time payments and excellent standing on all of your credit accounts, you will receive your deposit returned.
Student cards for credit
If you meet the income requirements while studying abroad in the United States, you might be able to obtain a social security number and be approved for a student credit card.
Credit cards without security
You can apply for an unsecured credit card with rewards programs and benefits like cash back or miles if you have a good credit history in the United States.
The benefits of credit cards for immigrants
New immigrants should compare credit cards to see if they offer benefits for spending before choosing one.
Pay back bonuses
Cash back rewards, which let you receive rewards depending on your expenditure, may be offered by some credit cards. You can incur additional moving costs as a new immigrant, and using your points as a statement credit can help you cover these costs.
Credit cards for travel
Credit cards with travel incentives may be particularly alluring for recent immigrants who travel frequently. The Discover it® Miles Card can let you accumulate Miles and then redeem them for statement credits for your travel-related expenses like airline, hotels, rideshares, gas stations, restaurants, and more. International travel is notoriously expensive.
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