How to Get a Credit Card as an International Student

Credit cards serve as a valuable financial tool for international students in a new country, offering convenience for everyday transactions, facilitating online purchases, and providing a safety net for unexpected expenses. Obtaining a credit card is a common objective for many international students, as it not only simplifies financial management but also initiates the process of building a financial identity. A credit card can contribute to establishing financial independence during their time abroad.

Essential Preparations Before Applying

Before applying for a credit card, international students must gather specific documentation and establish foundational financial elements. A Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is often a prerequisite for credit applications. An SSN is typically issued to individuals authorized to work in the United States, meaning international students with on-campus employment are generally eligible to apply for one through the Social Security Administration (SSA). The application process for an SSN involves submitting Form SS-5 along with original documents proving age, identity, and immigration status, such as a passport, visa, Form I-20 or DS-2019, and an employment offer letter. Students need a job offer to be eligible.

For international students not eligible for an SSN, an ITIN may be obtained from the Internal Revenue Service (IRS) for tax purposes. An ITIN is a nine-digit number used for federal tax reporting and is available regardless of immigration status. To apply for an ITIN, individuals must complete Form W-7 and provide original or certified copies of foreign status and identity documents. Applying in person at an IRS Taxpayer Assistance Center or through an IRS-authorized Certifying Acceptance Agent is often advised to avoid mailing original documents. Both an SSN and an ITIN help financial institutions identify applicants and report financial activity to credit bureaus, which is fundamental for credit building.

Establishing a U.S. bank account is another preliminary step, as it provides a stable platform for managing funds and making credit card payments. Banks typically require an international student’s passport, visa, Form I-20 or DS-2019, proof of local address, and sometimes school enrollment verification to open an account. Demonstrating proof of income or financial resources is also important for credit card applications. This may include recent bank statements, scholarship award letters, or documentation of funds from family support. If relying on a sponsor, their financial statements and a letter of commitment may be required.

Choosing the Right Credit Card

Selecting an appropriate credit card is a significant decision for international students, particularly given their lack of an established credit history in the United States. Several card types are more accessible and suitable for individuals new to the U.S. financial system.

Secured credit cards are a common starting point, requiring a cash deposit that often serves as the credit limit. This deposit mitigates risk for the issuer, making these cards accessible, and responsible usage helps build a positive credit profile over time. The deposit is usually refundable upon graduation to an unsecured card or account closure, provided all balances are paid.

Student credit cards are specifically designed for college students and may offer more lenient approval criteria than traditional unsecured cards, often without requiring a security deposit. These cards may feature lower credit limits initially but can provide benefits tailored to student life, such as rewards on specific spending categories or good-grade bonuses. Eligibility for student cards is usually tied to enrollment in an accredited educational institution and demonstrating some form of income or financial support. Both secured and student cards are reported to credit bureaus, allowing students to establish a credit history.

Another option involves applying for a credit card with a co-signer, typically a U.S. citizen or permanent resident with a strong credit history. The co-signer assumes joint responsibility for the debt, which can increase the likelihood of approval for the international student. However, the co-signer also bears the risk of default if the primary cardholder fails to make payments. Becoming an authorized user on another person’s credit card account, such as a family member, can also contribute to building credit, as the account’s positive payment history may be reported on the authorized user’s credit report.

Some universities maintain relationships with local credit unions or banks, which may offer specialized financial products, including credit cards, tailored to the needs of international students. These institutions might have a deeper understanding of the unique circumstances faced by international students, potentially offering more flexible terms or application processes.

Navigating the Credit Card Application Process

After preparing the necessary documentation and choosing a suitable credit card, the next step involves navigating the application process itself. Credit card applications can be completed either online or in person at a bank branch. Applying in person is often recommended for international students, as it allows for direct interaction with bank representatives who can clarify requirements and assist with specific documentation unique to their immigration status.

The application form itself will require personal information, including full legal name, date of birth, and contact details such as a U.S. residential address and phone number. Financial information, such as income sources and amounts, will also be requested, along with the SSN or ITIN. It is important to accurately enter all the previously gathered information into the respective fields on the application.

When submitting the application, applicants will be asked to present the required original documents. These typically include a valid passport, U.S. visa, Form I-20 or DS-2019, the SSN card or ITIN assignment letter, and proof of local address such as a utility bill or lease agreement. Bank statements or scholarship letters may also be necessary to substantiate reported income or financial resources. The bank representative will review these documents to verify identity and eligibility.

Following submission, the credit card issuer will review the application, which may involve a credit check, even if limited, especially for secured or student cards. They may also conduct verification calls to confirm employment or enrollment details. The waiting period for approval or denial can range from immediate decisions for online applications to several business days or weeks for those requiring manual review. If an application is denied, the applicant should receive a notice explaining the reasons for the denial. It is often advisable to contact the issuer’s reconsideration line to understand the specific reasons for denial and potentially provide additional information, or to consider applying for a secured card if initially seeking an unsecured option.

Establishing a Strong Credit History

Successfully obtaining a credit card is the first step toward building a strong financial foundation in the United States. A credit report is a detailed summary of an individual’s credit activities, including payment history, outstanding debts, and the length of credit relationships. A credit score, derived from the information in the credit report, is a three-digit number that lenders use to assess creditworthiness, with higher scores indicating lower risk.

Responsible credit card usage is paramount for establishing a favorable credit history. Paying bills on time is the single most influential factor in credit scoring, demonstrating reliability to lenders. It is advisable to pay the full statement balance each month to avoid interest charges and maintain good financial health. If paying the full balance is not feasible, always pay at least the minimum amount due by the due date.

Keeping credit utilization low is another critical aspect. Credit utilization refers to the amount of credit used relative to the total available credit; for example, if a card has a $1,000 limit and a $300 balance, the utilization is 30%. Financial experts generally recommend keeping credit utilization below 30% to positively impact credit scores, with lower percentages often being more beneficial. Using a small portion of the available credit shows responsible management without appearing over-reliant on borrowed funds.

It is generally advisable not to close old credit accounts, even if they are paid off, as the length of one’s credit history contributes to the credit score. Older accounts demonstrate a longer track record of responsible borrowing, which is viewed favorably by credit bureaus. Regularly checking credit card statements for accuracy and unauthorized transactions is also important for financial security. Discrepancies should be reported to the issuer immediately to prevent potential fraud or errors from affecting the credit report.

Monitoring credit activity is a proactive measure for maintaining a healthy credit profile. Individuals are entitled to a free copy of their credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months through AnnualCreditReport.com. Reviewing these reports helps identify any inaccuracies or signs of identity theft, ensuring the credit history accurately reflects financial behavior. For international students who began with a secured credit card, consistent responsible usage can lead to the issuer eventually offering to graduate them to an unsecured card. This transition typically occurs after a period of positive payment history, often six to twelve months, signifying that the student has demonstrated sufficient creditworthiness to be trusted with a credit line without a security deposit.