Credit Cards for International Students: Requirements and Top Options

Stepping into a new country as an international student is exciting, but managing finances can be challenging. A credit card can be a lifesaver, helping you manage expenses and build a credit history. However, getting a credit card without a Social Security Number (SSN) can be difficult. This guide explores the requirements for international students to obtain credit cards and the top options available, especially those that don't require an SSN.

Why International Students Need a Credit Card

Having a credit card as an international student offers several key benefits:

Building Credit History: A good credit history in the US is crucial for future financial goals, such as renting an apartment or getting a car loan. Using a credit card responsibly helps build this important credit history.
Managing Expenses: A credit card provides a convenient way to handle everyday expenses like groceries, textbooks, and transportation. It also offers a safety net for unexpected costs.
Earning Rewards: Many credit cards for international students offer rewards and cashback on purchases, making it a smart way to save money while spending.

Challenges in Obtaining a Credit Card

Understanding how to get a credit card can be overwhelming, especially for international students. Several factors can make the process daunting:

SSN/ITIN Requirement: Most credit card applications require an SSN or Individual Taxpayer Identification Number (ITIN), with the former being more commonly accepted, especially for online applications.
Ineligibility for SSN: Not every international student is eligible for an SSN. Work authorization is typically required, which may only be obtainable through on-campus employment.
Low Income: Even with work authorization and an SSN or ITIN, low income from part-time jobs or internships may hinder qualification for desired credit cards. However, issuers often allow inclusion of reliably accessible funds like loans or scholarship money designated for personal living expenses.
Lack of Credit History: The vast majority of credit card applications require at least a soft credit check, even for cards designed for people with bad credit or no credit history.
Different Application Materials: As an international student applying for a credit card, you may need different application materials, including your student visa, ITIN, and unexpired identification.

Ways for International Students to Access Credit

Though most credit card applications will require an SSN, there are different ways you can gain access to credit without one.

Request an ITIN

Some credit card issuers will accept this number for a credit card application if you do not have an SSN. If you can’t get or aren’t eligible for an SSN, you may be able to request an ITIN from the Internal Revenue Service (IRS). Some credit card issuers let applicants use an ITIN instead of an SSN on card applications. You can request an ITIN by submitting IRS Form W-7.

Read also: College Credit Explained

Become an Authorized User

If you know someone who is willing to let you become an authorized user on their card, you’ll then have access to credit this way. Another option is becoming an authorized user on a trusted friend’s or family member’s credit card. If the authorized user and the primary cardholder use the account responsibly, it can help both people build good credit. Credit card issuers don’t have to report authorized users’ activity to the credit bureaus.

Look for Cards That Don’t Require an SSN

As an international student, you have options when it comes to applying for a credit card. It may take some work, but you can access credit cards as an international student. Alternative forms of identification like ITINs, passports and visas can help.

Top Credit Card Options for International Students

Here are some of the top credit card options available to international students, including those that may not require an SSN:

1. Zolve Credit Cards

Zolve offers three credit cards tailored for international students: Zolve Classic, Zolve Signature, and Zolve Black.

Zolve Classic

Read also: Credit Union in Borger
- Key Features:
  - No SSN required for the application
  - Over $100 worth of annual benefits
  - $15 worth of welcome points
  - 1% unlimited cashback on all purchases
- Benefits:
  - No annual fee
  - No foreign transaction fees
  - Curated travel experiences
  - Global emergency services
  - Up to $1,000 accidental death and dismemberment coverage
  - Mastercard ID theft protection
  - Golf experiences
Zolve Signature
- Key Features:
  - No SSN required for the application
  - Over $1,000 worth of annual benefits
  - $25 worth of welcome points
  - $315 worth of credits on Lyft, Instacart, and more
  - Up to 3% cashback on three brands of your choice
  - 1% unlimited cashback on all spends
- Benefits:
  - No annual fee
  - No foreign transaction fees
  - Car rental loss and damage insurance
  - Airport concierge
  - Travel and lifestyle services
  - Up to $3,000 in accidental death and dismemberment coverage
  - Extended warranty
  - Exclusive lifestyle experiences
  - Golf experiences
Zolve Black
- Key Features:
  - No SSN required for the application
  - Over $2,000 worth of annual benefits
  - 16g laser-engraved metal card
  - $50 worth of welcome points
  - Up to 5% cashback on five brands of your choice
  - $340 worth of credits on Lyft, Instacart, and more
  - 1.5% unlimited cashback on all spends
- Benefits:
  - No annual fee
  - No foreign transaction fees
  - Mastercard airport experiences
  - Car rental loss and damage insurance
  - Trip cancellation and interruption insurance
  - Lost or damaged luggage insurance
  - Travel accident and medical insurance
  - No foreign transaction fee
  - Mastercard airport concierge
  - Mastercard travel and lifestyle services
  - Up to $10,000 accidental death and dismemberment coverage
  - Cell phone protection
  - Purchase protection
  - Extended warranty
  - Global emergency services
  - Mastercard ID theft protection
  - Exclusive lifestyle experiences
  - Golf experiences
  - Concierge services

2. Deserve Edu Mastercard

Key Features:
- No SSN required for the application
- 1% cashback on all purchases
- Free year of Amazon Prime Student
- Reports to the three major credit bureaus

3. Capital One Journey Student Credit Card

Key Features:
- ITIN accepted instead of SSN
- 1% cashback on all purchases, with a 0.25% bonus for paying on time
- Rewards for responsible use
- Reports to the three major credit bureaus

4. Discover it® Student Chrome

Key Features:
- ITIN accepted for application
- 2% cashback at gas stations and restaurants, up to $1,000 in combined purchases each quarter
- Matches all the cashback earned at the end of the first year
- Intro APR period

5. Bank of America Cash Rewards for Students

Key Features:
- ITIN accepted instead of SSN
- 3% cashback on a category of your choice, 2% at grocery stores and wholesale clubs, and 1% on all other purchases
- Flexible rewards redemption options
- Introductory APR period
- Reports to the three major credit bureaus

Alternatives to Credit Cards

If obtaining a traditional credit card is not immediately feasible, consider these alternatives:

Secured Credit Cards

A secured credit card can be a great first step to establishing credit. Secured credit cards look and function much like traditional, unsecured credit cards. But with a secured card, you have to pay a one-time, refundable security deposit to open an account. With secured credit cards, your credit limit is determined by a deposit you put down: allowing the card to be secured with your own funds.

Prepaid Cards

Consider opening a bank account, sign up for a prepaid card.

Building Credit as an International Student

Here are some key steps to building credit as an international student:

Apply for an SSN (if eligible): Students with F-1 or other student visas may qualify for an SSN if they have authorization and a job lined up, such as a part-time job at school.
Request an ITIN: If you can’t get or aren’t eligible for an SSN, you may be able to request an ITIN from the Internal Revenue Service (IRS).
Become an authorized user: Another option is becoming an authorized user on a trusted friend’s or family member’s credit card.
Responsible Credit Use: If you’re approved for a credit card, you have to use it responsibly over time to build good credit.
Pay Bills on Time: Paying bills on time and keeping your spending below your credit limit will help you build a good credit score that may help you with your goals later on.
Consider Long-Term Goals: If you plan to leave the US after you graduate, or do not feel confident that you will be able to keep up with credit card payments, then a student credit card may not be right for you.

Tips for Using a Credit Card Responsibly

Remember that the primary reason for opening a credit card or student credit card is to begin building your credit. This means using the card responsibly once the account is open.

Make a budget for your expenses. Remember to only spend money on the credit card if you are sure you can pay it off.
Pay your bills on time, especially your monthly credit card bill. Even if you cannot pay off the whole balance, at least pay the monthly minimum so that your credit score is not affected.
Check your credit report regularly to ensure accuracy and monitor your progress.

The Importance of Credit in the US

In the United States, credit scores and credit cards are crucial tools for managing personal finance. They affect your ability to secure loans, rent an apartment, and even influence job applications.

A credit score is a three-digit number representing your creditworthiness-essentially, how likely you are to repay borrowed money on time. are calculated using models, like FICO or VantageScore, which generally range from 300 to 850, with higher scores indicating better credit.

Factors Affecting Credit Score

Credit scores are influenced by several factors:

Payment History (35%): Making payments on time is the most critical factor.
Amounts Owed (30%): This refers to your credit utilization ratio, the percentage of your available credit that you're using.
Length of Credit History (15%): The longer your credit history, the better.
Credit Mix (10%): Having a mix of different types of credit accounts (e.g., credit cards, loans) can positively impact your score.
New Credit (10%): Opening too many new accounts in a short period can lower your score.

tags: #credit #cards #for #international #students #requirements