Moving to a new country can feel like an adventure. However, with all the hurdles, it may also seem daunting. You’ve gone through the checklist: figured out your visa, sorted out your classes, and found a place to stay. But then you hit a wall: credit lines and overall banking limitations. The issue may come up in different scenarios, whether it be trying to rent an apartment or signing up for a phone plan- all creditors want to see a credit history before approving your loans. It leaves many international students with the same question: “Can international students get a credit card without a Social Security number or long financial track record?” The short answer is yes, and there are plenty of options to start building your financial footprint.
The Credit Paradox: Why You Feel Invisible
For most domestic students, getting a first card is a rite of passage. They turn 18, fill out a form, and often get approved based on their parents' support or student status. For international students, the application process usually stops cold at the "Social Security Number" (SSN) field.
The U.S. financial ecosystem relies heavily on the SSN to track identities and economic behavior. Banks use this number to pull your credit report from the three major bureaus: Equifax, Experian, and TransUnion. If you don't have an SSN, the bureaus likely don't have a file on you. Without a file, you are "credit invisible."
This invisibility creates friction in daily life. Landlords may demand higher security deposits because they can't verify your financial reliability. Utility companies might ask for upfront payments. Even getting a cell phone contract can become a headache. However, being invisible doesn't mean you're stuck. The financial landscape is shifting, and many issuers are beginning to understand the value of international talent, adjusting their requirements to help you bridge this gap.
The SSN vs. ITIN Dilemma
If you aren't eligible for an SSN (which is common if you don't have on-campus employment), you aren't out of options. The Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the IRS for individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, an SSN.
Many major credit card issuers accept an ITIN in place of an SSN on applications. Applying for an ITIN involves submitting Form W-7 to the IRS, along with documentation to substantiate your foreign status and true identity. While it consists of some paperwork, obtaining an ITIN is a crucial step that unlocks access to a broader range of financial products, allowing you to start building a score that lenders respect.
Innovative Options for International Students
If you are ready to start building, you need to know where to look. You don't want to apply randomly, as rejected applications can hurt the score you're trying to develop.
1. Student-Specific Credit Cards
Several financial institutions have recognized the struggle of international students and have designed products specifically for people in your shoes. These cards often have more lenient requirements and may offer perks like cash back on dining or textbooks.
Some issuers provide international student credit cards designed to help you bypass the strict SSN requirements. Instead of relying solely on a credit score, these issuers might look at alternative data, such as your university enrollment status, your major, or the balance in your bank account, to approve you. This "alternative data" approach is becoming more common and is a game-changer for newcomers.
2. Secured Credit Cards
If traditional student cards aren't an option, a secured card is a powerful tool. With these, you place a refundable security deposit that acts as your credit limit. For example, if you deposit $500, you have a $500 limit.
This reduces the risk for the bank to zero. If you don't pay, they use your deposit to cover the debt. Because the risk is low, approval is much easier, even without a credit history. When looking for the best secured credit card to build credit, you want to ensure the issuer reports to all three major credit bureaus so your good habits actually count. Over time, as you prove you can pay on time, many issuers will offer to upgrade you to an unsecured card and return your deposit.
3. Becoming an Authorized User
Another effective strategy is "piggybacking." If you have a close family member or a trusted friend in the U.S. who has a credit card with a long, positive history, they can add you as an authorized user.
As an authorized user, you get a card with your name on it linked to their account. The account's history, including on-time payments and the age of the account, is often added to your credit report. This can give your score an immediate boost. However, this requires a high level of trust. If the primary account holder misses a payment or maxes out the card, that negative information could also appear on your report.
4. Credit Builder Loans
Sometimes, you may not want another card in your wallet, or you may want to diversify your credit mix. This is where a credit builder account shines. It works in reverse of a standard loan: rather than getting money upfront, you make payments into a locked savings account.
These payments are reported to the bureaus, building a positive history of on-time payments. At the end of the term, you get your savings back. It is a forced savings plan that builds your reputation simultaneously.
Strategies for Building a Strong Score
Getting the account is just the first step. How you handle it matters more. The U.S. credit scoring system (FICO®) weighs several factors, and understanding them is key to rapid growth.
- Pay on Time, Every Time: This is the most critical factor. Payment history makes up 35% of your FICO® score.¹ Even one late payment can significantly damage a young score. Set up autopay to ensure you never miss a due date.
- Watch Your Utilization: If you have a credit card, try to keep your balance low relative to your limit. This is called your credit utilization ratio. Experts recommend keeping it below 30%, but staying under 10% is even better. For example, if your limit is $500, try not to carry a balance of more than $150.
- Monitor Your Progress: Check your reports to ensure your personal information is correct, and your accounts are being reported accurately. You are entitled to a free report from each bureau annually.
If you are evaluating different products, looking at a guide on the best credit cards to build credit can help you compare fees, interest rates, and rewards to find a match for your budget.
Bridging the Gap for Newcomers
The challenge of building credit isn't limited to students; it affects almost anyone moving to the U.S. The system often fails to account for the financial responsibility you demonstrated in your home country. You may have had a platinum card and a mortgage back home, but here, you are starting from scratch.
Understanding how immigrants can build credit is essential for navigating these early years. It ensures that your hard work translates into a financial reputation that lenders respect. By combining different methods-like a secured card for revolving credit and a credit builder loan for installment credit-you create a robust profile that looks attractive to future lenders for car loans or mortgages.
How Cheers Can Help You Start
At Cheers, we understand that you are more than a blank credit file. The system should work for you, not against you. That's why we designed a tool that helps you build credit history while you save money, accessible even if you are starting your journey in the U.S.
Here is how Cheers supports your journey:
- No Hard Credit Check: We don't pull your credit score to apply. All accounts are subject to identity verification, which does not impact your credit score. This means you can use it without fear of a hard inquiry dropping your score further.
- Accelerated Reporting: Speed matters when you are trying to get established. Cheers uses accelerated reporting² to report your account and first payment to the bureaus within 15 days of account opening.
- Full Savings Return: Your payments are held securely and returned to you at the end of your term, minus interest.³ It's a safe way to force yourself to save for post-graduation expenses or a rainy day fund.
- Fair and Transparent: We charge a fixed 12.15% APR with no hidden fees⁴, administrative costs, or penalties for canceling early.⁵ You know precisely what you are paying upfront.
- Safety and Security: Your funds are held in your name at Sunrise Banks, N.A., Member FDIC, and are FDIC insured up to $250,000.⁶
Cheers reports to all three major credit bureaus-Equifax, Experian, and TransUnion-helping you establish the payment history and credit mix you need to succeed.⁷ By adding an installment loan to your profile (the credit builder account), you diversify your credit mix, which accounts for 10% of your FICO® score.
Conclusion
Settling in the U.S. comes with its challenges, and establishing your credit history can be one of those hurdles. There may be a lot of barriers when establishing credit, but there are also a lot of solutions. Leveraging the right tools and understanding how credit works is the first step to success. With options with alternative data, secured cards, or a credit builder loan like Cheers, you can start building your financial history to build a score that serves you well after graduation.
Don't let a lack of history hold you back. Take control of your financial reputation today.
Start building credit with Cheers today.
This content is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor or tax professional before making any financial decisions.
(The opinions expressed in this article are the author’s own and do not reflect the view of Sunrise Banks, N.A. Member FDIC.)
References:
- How to get a credit card as an international student - https://www.capitalone.com/learn-grow/money-management/international-student-credit-cards/
Footnotes
1FICO® Credit Factors:
According to FICO®, 35% of your credit score is based on payment history, and 10% is based on credit mix. Cheers reports every payment and adds a secured installment loan to your profile. Source: myFICO： https://www.myfico.com/credit-education/whats-in-your-credit-score
2Accelerated Reporting:
Accelerated reporting applies to the opening of your account, plus the first payment. Credit bureau reporting occurs monthly thereafter
3Cancel Anytime & Get Savings Back:
At the end of your term, your total savings (minus interest) is returned to you. You can cancel your account at any time without penalty.
4APR Comparison & Affordability:
Cheers Interest is calculated using an amortized repayment schedule at a fixed 12.15% Annual Percentage Rate (APR). Comparable products may charge APRs up to 36%, according to publicly available terms. Cheers also charges no administrative or hidden fees.
5No Hidden Fees:
There are no application fees, maintenance fees, or early cancellation penalties.
6Sunrise Banks:
Cheers is a financial technology company and not a bank. Banking services are provided by Sunrise Banks N.A. Your funds are FDIC insured up to $250,000 through Sunrise Banks, N.A., Member FDIC. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus, which may negatively impact your credit score. This product will not remove negative credit history from your credit report. All loans are subject to approval. Must be at least 18 years old, have a valid U.S. bank account, and a Social Security Number.
7Payment activity:
All payment activity is reported to the credit bureaus. On-time payments may help build your credit, while late or missed payments may negatively impact it. Results are not guaranteed and depend on your individual financial behavior and credit profile.
