Managing money is one of the biggest challenges for international students, but the right approach can set you up for success. You can look for scholarships to provide funds and take up a part-time job to handle your living expenses. As an international student in the US, you can even earn approval for a credit card.
It enables you to keep your finances afloat and apply for loans. You can use a credit card to establish a US credit and improve your chances while applying for a job and renting a home. If you plan to build a life in the country, a credit history serves as a foundation for your residency plans.
Fortunately, getting a credit card in the US as an international student is easier than you think. The best part is that you have multiple options and can pick the one that works for you. Here are the ones you can explore as a part of your study abroad journey in the United States.
OPTION #1- APPLY WITH YOUR SSN/ITIN
Applying for a credit card here is pretty straightforward for international students with a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). You only have to include the number in the application, and you are good to go. The provider will consider the regular factors such as your income and credit history for evaluating the application for approval.
OPTION #2- APPLY WITH YOUR PASSPORT
Even as most credit cards require you to submit your SSN or ITIN, you can still explore issuers who provide them exclusively for students without these numbers. You will need to submit your passport instead. The option works for international students who plan to stay in the country only for the short term.
OPTION #3- BECOME AN AUTHORISED USER ON AN EXISTING ACCOUNT
At times, either of the aforementioned options may not work. But you can find an alternative by asking a family member or friend to designate you as an authorised user to their existing credit card. Once you become an authorised user, you get a card with your name. The expenses you make are charged to the account owner. You may still build your credit score as an authorised user because some cards report the payment history of authorised users to credit bureaus.
OPTION #4- BUILD CREDIT HISTORY WITH SECURED CREDIT CARDS
You may also consider thinking backward. Start by building a credit history, and you can get approval for your credit card in the US even without an SSN or ITIN. It is easy to build your credit by getting a secured credit card, which determines your credit limit on the basis of the deposit you put down. Simply speaking, you secure the card with your own funds and work on building a score and history for the future. Applying for credit-builder loans is also an alternative to getting a secured card.
OPTIONS #5- BUILD CREDIT WITH YOUR INCOME AS AN INTERNATIONAL STUDENT
This option involves using your income as an international student as the validation of the ability to repay your debt. The issuer will be willing to approve if you can show that you have a regular source of income. Taking up a part-time job on-campus is a good idea to max the chances of approval. But make sure that the job does not complicate your international student status.
Assess the options and pick the one that gives you the best chances of approval. Getting a credit card in the US may require some effort for international students. But it is worthwhile considering that building a foundational credit score can help you with your residency goals. Approval is just the beginning, as you also have to do all it takes to consolidate your credit score. Make on-time payments and borrow only as much as you can pay back, and you will be in a good space!
If you are considering studying abroad why don’t you discuss your prospects and opportunities with experts at Lurnable’s dedicated study abroad counselling division LurnPathways?
