How to Get a Credit Card for International Students
International student? Navigate the process of acquiring and managing a credit card to establish financial footing in your new country.
Credit cards offer a convenient way to make purchases and manage expenses. They provide a mechanism for short-term borrowing, allowing cardholders to acquire goods or services with the promise of repayment. For individuals new to a country, a credit card can help establish a financial presence and build a financial history.
Understanding Eligibility and Required Documents
Securing a credit card as an international student involves meeting eligibility criteria and providing various documents. Applicants typically need to present:
A valid passport
Their visa (such as an F-1 or J-1 visa)
Their Certificate of Eligibility for Nonimmigrant Student Status (I-20) or Certificate of Eligibility for Exchange Visitor Status (DS-2019)
Proof of enrollment at a U.S. institution
A local U.S. address
A Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) is often required for credit card applications. While an SSN is typically issued to those authorized to work in the U.S., an ITIN is available to individuals who need a taxpayer identification number but are not eligible for an SSN. For international students not eligible for an SSN, obtaining an ITIN is a common pathway to applying for a credit card.
To apply for an ITIN, individuals must complete IRS Form W-7, “Application for IRS Individual Taxpayer Identification Number.” Along with Form W-7, applicants generally submit a certified copy of their passport, a copy of their visa stamp with the date of first entrance to the U.S. in their current status, and a copy of their I-20 or DS-2019 form. The application can be mailed to the IRS, submitted through an IRS-approved Acceptance Agent, or by appointment at a designated IRS Taxpayer Assistance Center. Proof of income, even if from scholarships, stipends, or parental support, is also typically required to demonstrate the ability to repay debt.
Types of Credit Cards for International Students
Several types of credit cards are accessible to international students. Secured credit cards are a common option, especially for those with no credit history. These cards require a security deposit, which typically determines the credit limit, and this deposit acts as collateral for the credit line. Responsible use, including on-time payments, can help build a credit history that may eventually lead to qualifying for an unsecured card.
Student credit cards are designed for students, often having lower eligibility barriers. Some student cards may not even require an SSN, accepting a passport or an ITIN instead for the application. These cards can offer benefits like no annual fees and cash-back rewards, while still helping students establish a credit history.
Becoming an authorized user on an existing credit card account is another option. As an authorized user, you receive a card linked to the primary cardholder’s account, and your spending is charged to their account. The payment history may be reported to credit bureaus for both the cardholder and the authorized user, allowing the authorized user to build credit history through on-time payments without needing an SSN or ITIN.
The Application Process
Once documents are prepared and a suitable credit card type is identified, the application process begins. Applications can typically be submitted online through the issuer’s website or in person at a bank branch. For some cards, particularly initial applications without an SSN, an in-person application at a branch may be necessary.
When completing the application form, accurately provide all personal, financial, and identification details, including your name, address, contact information, and your SSN or ITIN if applicable. After submission, the application is reviewed by the issuer. The credit card company may request additional documentation or verification.
Applicants are typically notified of approval or denial through mail or email. If approved, the physical credit card is usually mailed to the provided address. Should an application be denied, the issuer is generally required to provide a reason.
Managing Your Credit Card
Upon receiving a new credit card, activate it online, through a mobile banking app, or by calling the card provider. Some cards may also be activated by making a PIN transaction at an ATM. After activation, understanding the monthly credit card statement is important.
A credit card statement provides a summary of all account activity over a billing cycle. Key components include the statement closing date (end of the billing cycle) and the payment due date (when payment must be received to avoid late fees). The statement also shows the minimum payment due, total balance owed, and available credit.
Making timely payments is important for financial health and can be done through online banking, mobile apps, or by mail. Many banks offer options to set up one-time or recurring payments directly from a checking or savings account. The credit limit represents the maximum amount a lender allows you to spend. It is advisable to keep credit utilization low, ideally below 30% of the credit limit.