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Not all citizens of the U.S. have a Social Security Number. This is exactly what happens when an immigrant, international student, visa holder or a new resident attempts to apply for a card. The bright side is that there are ways to obtain a Credit Card Without SSN and the documents needed to prepare.
It will take you through the reason why banks require an SSN, what options are available to you, and how you can continue to establish credit in the U.S. without having an SSN.
What is the reason for credit card companies to request an SSN?
A Social Security Number is primarily used by banks and card companies for two purposes: to verify identity and to check credit history. Your SSN is linked to your credit report, and lenders will see how you’ve managed your debts. A bank won't have easy access to your credit history without it, and therefore won't be as likely to approve you as a borrower but it can be done.
Fortunately, many financial institutions now accept other forms of identification for people who are not eligible for an SSN.
Is it possible to obtain a credit card without an SSN?
Yes, you can. There are a number of banks and credit unions in the U.S. that permit foreign nationals, students or new immigrants to apply with alternative forms of identification. Most frequently, it's an ITIN, or Individual Taxpayer Identification Number, that the IRS assigns for tax reasons. Some institutions will also accept a passport, visa or foreign driver's license as supporting documents.
When looking for a credit card without SSN, ITIN-friendly banks are typically the best place to begin since they are already compliant in handling applications from credit card holders who don't have a Social Security Number.
The Best Options for a Credit Card Without SSN are:
1. Secured Credit Cards
Secured cards are one of the most convenient cards to obtain without an SSN. There is a deposit, which is typically the same as your credit limit, but is refundable. The risk is lower and so are the requirements for approval, since the bank keeps this deposit as collateral. Most issuers of secured cards will be able to use an ITIN instead of a Social Security number.
2. Student Credit Cards
Some banks have student credit cards that are tailored for the international student who may have a limited or nonexistent credit history in the U.S. These cards may also have lower limits and they will help you get a head start on establishing a credit history.
3. Credit Union Cards
Local credit unions are often more flexible than the national banks. A lot of will hand out a card with an ITIN, particularly in case you have a checking or savings account with them. It can help your odds substantially if you establish a relationship with a credit union before applying.
4. Store and retail cards.
Retail store cards typically have a less complex application procedure. Certain big stores will accept an ITIN in place of an SSN so these cards are a great way to start establishing a credit history.
All the documents you might need.
If you're applying for a credit card without a social security number, you must be prepared to give the following:
1. Valid passport or Government photo ID Card.
2. Document of address (e.g. rent or utility bill)
3. An Internal Revenue Service Identification Number (ITIN) issued by the IRS.
4. Evidence of income or employment.
5. Must have a U.S. bank account if requested by the issuer
Filling out the application with these documents in hand will make it a quicker and easier process and decrease the likelihood of rejection.
How to Apply for an ITIN
The ITIN is the most popular alternative to an SSN, so it is important to know how to obtain one. The IRS accepts applications using Form W-7 and tax returns, along with identification, to be processed. Typically requires several weeks for processing, so it is advisable to apply early if you know you need a card soon.
After you have your ITIN, you can easily apply for most credit cards because it meets the identity verification requirement for many banks.
The following are tips to help you increase your chances of being approved:
If you follow these strategies, it will be easier to be approved for a credit card without SSN:
First open a bank account. If you have an existing relationship with a bank, you will be more likely to get approval for your card application.
Start with a secured card. These are the most likely to be approved by those who do not have any records.
Provide a history of regular earnings. Lenders want to make sure that you will be able to pay back the loan that you give them.
Apply with smaller or local banks. ITIN holders are more likely to be able to work with community banks and credit unions.
Maintain an orderly filing system. One of the most frequent failures of paperwork that can delay or lead to the denial of applications is failing to keep received documentation.
Establishing Credit While You're a Card Holder
The first step to getting the card is only the beginning. To build a strong credit history in the U.S., make sure to:
1. Make timely and full monthly payments
2. Do maintain a low credit level, preferably under 30 percent.
3. Try not to open any or many cards at once.
4. Regularly review your credit report for inaccuracies
As you use your card wisely, you will be eligible for better financial offers, such as unsecured cards, auto loans and ultimately a mortgage.
Final Thoughts
A lack of a Social Security Number does not exclude you from the U.S. financial system. A few documents, particularly an ITIN, can help you get a credit card even without SSN and start building a good credit history. Immigrants, students, and new residents have realistic options available for them – secured cards, student cards, and credit union options.
The secret of this is preparation. Collect your identification, get an ITIN (if needed), and select an ITIN provider that is familiar with applicants who don't have a Social Security Number. If you're patient and use these accounts responsibly, you can develop the credit that will help you achieve financial success in the U.S.
