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Building credit is essential for immigrants in the U.S., as it helps secure loans, housing and better financial opportunities. Since credit history from other countries typically doesn't transfer, immigrants must build credit from scratch.
The first step is to obtain an SSN or ITIN. After that, opening a bank account helps establish a financial presence. Then, applying for a secured credit card or credit-builder loan can further grow your credit over time.
Immigrants can build credit in the U.S. by obtaining an SSN or ITIN to access financial products.
Secured credit cards and credit-builder loans are effective tools for starting to build credit with little risk.
Becoming an authorized user on a trusted account helps establish credit faster by leveraging someone else's good credit history.
A strong credit history can help immigrants access loans, rent housing and reduce insurance costs.
One of the first steps to building credit in the U.S. as an immigrant is obtaining a Social Security Number (SSN). The SSN is a unique identifier used by financial institutions to track your credit history and report your credit activity to the major credit bureaus. Without an SSN, applying for credit cards, loans or other financial products can be difficult.
For those not eligible for an SSN, applying for an Individual Taxpayer Identification Number (ITIN) through the IRS is an alternative. While an ITIN doesn't function exactly like an SSN, it allows you to access some financial products that report to the credit bureaus.
To apply for an SSN as an immigrant, here are the general steps you can follow:
Immigrants may be eligible for an SSN based on their visa type or residency status. Generally, individuals with work-authorized immigration status, such as lawful permanent residents (green card holders), employment-based visas or valid work permits (such as DACA recipients), can apply for an SSN.
Download and complete the SS-5 form from the Social Security Administration (SSA) website. You must provide personal information, including your name, date of birth and immigration status.
Immigrants applying for an SSN must submit proof of identity, immigration status and work eligibility. Common documents include:
You cannot apply for an SSN online. Submit your application and supporting documents at your local SSA office. The office will review your application and documents to verify your identity and immigration status.
Once your application is processed, you will receive your SSN card by mail. The entire process may take a few weeks. You can check with the SSA office for estimated processing times.
Opening a bank account helps create a financial footprint in the U.S. and gives immigrants access to banking services like credit cards or loans. A bank account allows you to manage your income, pay bills and set up automatic payments, all of which demonstrate financial responsibility. This can indirectly support your credit-building efforts by showing stability and regular cash flow.
If you don't have an SSN, choose a bank that accepts alternative forms of ID, such as a passport, ITIN or foreign government-issued ID. Many national and community banks, like Bank of America or Wells Fargo, offer services designed to help new immigrants. Be prepared to provide your passport, visa, proof of address and ITIN (if applicable). Not all banks require an SSN, so ensure the bank you choose accepts alternative IDs.
Becoming an authorized user on someone else's credit card is one of the quickest ways to start building credit. As an authorized user, the primary cardholder's credit history is reported on your credit report, helping you establish your credit without applying for a card. You can also use the card to make purchases, which contributes to your credit history.
To get started, ask a trusted family member or friend with good credit to add you to their account. The primary cardholder will need to contact their credit card issuer to add you, and it's important to confirm that the issuer reports authorized user activity to the credit bureaus to ensure it contributes to your credit score.
Secured credit cards are a great option for immigrants starting to build credit. They require a refundable deposit, which becomes your credit limit, making them easier to get if you don't have a credit history. This lowers the risk for the lender and gives you a chance to build or improve your credit. By making small purchases and paying your balance on time each month, you can gradually increase your credit score and qualify for other credit products in the future.
Although secured credit cards are a great starting point, other credit cards can also help immigrants build credit. Depending on your financial situation and credit history, here are some options to consider:
Credit Card Type | Description |
|---|---|
Designed for international students with limited or no credit history. Often have lower fees and easier qualification criteria. | |
Unsecured Credit Cards | Best for individuals with limited or no credit history. Typically have higher interest rates and lower credit limits, without requiring a deposit. |
These cards offer lower interest rates, which can save money on balances carried from month to month. Often available to immigrants with established credit histories. |
A credit-builder loan allows immigrants to demonstrate responsible financial behavior without the risk of borrowing large sums upfront. Here's how it works: instead of receiving the loan immediately, the funds are held in a secure account. You make fixed monthly payments toward the loan, and once it's fully paid off, the funds are released to you. This process builds your credit by reporting your on-time payments to the credit bureaus.
Here's where immigrants can find credit-builder loans:
Credit Unions
Many local credit unions, such as Self-Help Credit Union, offer credit-builder loans with flexible membership requirements. Some accept alternative IDs like an ITIN, making them accessible for immigrants.
Community Banks
Smaller banks, like Southern Bancorp, are more likely to work with individuals with limited credit history, offering credit-builder loans with accessible terms for immigrants.
Online Lenders
Reputable online lenders like Self and CreditStrong specialize in credit-builder loans and offer flexible requirements for applicants, including those who can apply with an ITIN instead of an SSN.
Nonprofit Organizations
Organizations like Mission Asset Fund and Capital Good Fund focus on financial inclusion and offer credit-builder loans as part of their mission to help low-income and underserved communities, including immigrants.
Once you've opened credit accounts, how you manage them significantly impacts your credit score. Responsible credit card use includes making timely payments, keeping balances low and avoiding too much new credit. Consistently managing credit well helps build a strong credit history, opening the door to better financial opportunities.
Always pay at least the minimum by the due date. Late payments can seriously hurt your credit score.
Use no more than 30% of your available credit. For example, if your limit is $1,000, keep the balance under $300.
Whenever possible, pay off your balance each month to avoid interest charges and lower debt levels.
Applying for several credit accounts in a short period can hurt your credit score. Focus on managing your existing accounts before applying for new credit.
Monitoring your credit score and report ensures that the credit-building efforts are paying off and that your information is accurate. Regularly checking your credit report helps you catch errors or fraudulent activity, which can negatively impact your score. Many free and paid services allow you to track your credit and maintain a healthy score.
Here's where immigrants can access free credit reports:
Establishing good credit allows for easier access to credit cards and loans and opens doors to better housing, employment and other essential services. A strong credit history can significantly improve financial stability and help immigrants achieve long-term financial goals.
Access to Loans and Mortgages
A strong credit score enables immigrants to qualify for personal loans, car loans and mortgages, often with lower interest rates and better terms. This can make it easier to afford major purchases, such as buying a car or home, without resorting to high-cost alternatives.
Easier Approval for Rentals and Utilities
Landlords and utility companies often check credit before approving applications. A good credit score can streamline the approval process for renting an apartment or setting up essential utilities like electricity and internet without paying large deposits.
Employment Opportunities
Some employers review credit reports for positions involving financial responsibility or sensitive information. A positive credit history can improve your chances of securing jobs in industries like banking, finance or accounting.
Improved Financial Flexibility
An established credit history allows immigrants to qualify for credit cards with higher limits, better interest rates and rewards programs. This can provide additional flexibility in managing finances and making purchases when needed.
Below are answers to some of the most common questions about establishing and building credit in the U.S. as an immigrant.
Immigrants with no credit history can start by applying for a secured credit card or a credit-builder loan, or by becoming an authorized user on someone else's credit card. These options help establish credit from scratch and are often accessible to individuals without a long financial track record in the U.S.
Not all lenders accept an ITIN instead of a Social Security Number, but many do, especially immigrant-friendly banks, credit unions and online lenders. Always confirm with the lender whether they accept an ITIN before applying for a credit product.
No, credit history from other countries doesn't transfer to the U.S. credit system. You'll need to start building a new credit history once you arrive in the U.S., but tools like secured credit cards and credit-builder loans can help you establish credit quickly.
It can be tough for undocumented immigrants and those without a green card to establish themselves in the U.S. financial system since many financial services require a Social Security Number (SSN) to get a credit card or take advantage of other services.
But more and more financial institutions are allowing individuals without a green card to open checking accounts and apply for credit cards, auto loans and home mortgages. Federal law does not require banks to check immigration status or ask for an SSN.
One of the best ways to help your spouse build their credit as a foreigner in the U.S. is to add them as an authorized user to a card you own. That way, they will inherit the history of that card account and benefit from the on-time payments you make.
As noted by credit companies like Experian, it can take three to six months for immigrants with no credit score to build their credit history from scratch. But be aware that everyone’s situation is different, and it can also take longer.
It can take a lot of time and patience to navigate the U.S. financial landscape, but once you start, you’ll be able to improve your ability to get ahead. MoneyGeek spoke with industry leaders and advisors for their expert insights on how to build credit as an immigrant.
About Nathan Paulus
Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.
Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.
