Can International Students Apply for a Credit Card?

Credit cards are important for managing finances and establishing financial standing in a new country. For international students in the United States, obtaining a credit card can seem complex due to the absence of a local financial history. Despite these challenges, international students can acquire credit cards, providing a tool for everyday transactions and building a credit profile.

Understanding Eligibility for International Students

A key consideration for international students seeking a credit card in the United States is the requirement for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). Most credit card applications require one of these identifiers for processing. An SSN is assigned to individuals authorized to work in the U.S., such as those on F-1, M-1, or J-1 student visas with work authorization. Students with authorized employment can apply for an SSN.

An ITIN is a tax processing number for those who need to file U.S. taxes but are not eligible for an SSN, such as students with taxable scholarships. Some issuers accept an ITIN, and a few cards may be accessible with only a passport.

Financial institutions evaluate income to assess repayment ability. Income can include wages, family allowances, grants, or scholarships. For applicants under 21, income is generally limited to personal earnings or verifiable allowances. Students over 21 may include a broader range of financial resources.

A significant hurdle is the absence of a U.S. credit history. Issuers rely on this to gauge creditworthiness. Without an established U.S. credit file, qualifying for traditional unsecured cards is difficult. Foreign credit history does not transfer, requiring a new credit profile.

Credit Card Options for International Students

Several credit card options address the challenges of limited U.S. credit history or lack of an SSN.

Secured Credit Cards

Secured credit cards are a common choice for those without an established credit profile. These cards require a security deposit, often $200 to $1,000, which typically sets the credit limit. The deposit minimizes issuer risk, making approval more likely, and responsible use builds credit history.

Student Credit Cards

Student credit cards are tailored for college students. They often have lower credit limits and more lenient approval criteria. Some can be obtained with an ITIN or a passport, bypassing the SSN requirement. Many student cards have no annual fees and offer modest rewards.

Authorized User Status

Becoming an authorized user on an existing account is another method to establish credit. A trusted family member or friend can add a student to their account, providing credit access without an independent application. While the primary cardholder is responsible for payments, the authorized user’s activity may be reported to credit bureaus, contributing to their credit history. Confirm with the issuer that authorized user activity is reported.

Co-signer Cards

Co-signer cards allow a creditworthy individual, like a parent, to share debt responsibility. The co-signer’s credit history and income can help a student qualify. Not all banks permit co-signers. Some credit unions and local banks may offer more flexible options.

Preparing for Your Application

Before applying, gather all necessary documentation.

A valid passport and visa are essential for proving identity and legal status. Form I-20 or Form DS-2019 are also typically required. Proof of a U.S. address is a common requirement, satisfied with a utility bill, lease, or university letter.

Demonstrating financial stability requires proof of income or funds, such as bank statements, scholarship letters, or employment verification. If an SSN is obtained, it is a key piece of information. If not, an ITIN can be beneficial. Prepare university enrollment details, including student ID, program, and graduation date. Ensure all documents are current.

The Credit Card Application Process

Once preparations are complete, proceed with the credit card application.

Applications can be submitted online or in person. Online applications involve inputting personal, financial, and identification details. In-person applications involve a bank representative guiding the process and reviewing documents.

After submission, the issuer reviews the information. Some applications receive an immediate decision, while others require a waiting period. During review, the issuer may request additional information.

The decision is communicated via email or mail. If approved, the card is mailed to your U.S. address, usually within seven to ten business days. Activation instructions are included. If denied, the issuer provides a reason, offering insights for improvement.