Can international students apply for credit cards?

One of the many questions people, especially international students in the USA, ask is, Can International Students Apply for Credit Cards? Dealing with financial systems in a new country, no doubt, can be overwhelming, especially for international students. One of the biggest concerns is whether or not they can apply for a credit card. While credit cards are essential for building a credit history, securing one as an international student comes with unique challenges.

Understanding credit card eligibility and how to best manage finances can make or break their experience abroad. This post will explain everything international students need to know about applying for credit cards, why credit history matters, and alternative financial tools available to them.

Whether you’re an international student or a financial advisor seeking insights, this guide will walk you through key strategies to ensure smart financial planning.

Credit Card Eligibility for International Students

Yes, international students can apply for credit cards—but eligibility depends on several factors. Most banks consider the following before approving an application:

• Residency Status: Proof of legal residence, such as a student visa or study permit, is often required.
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN): Many banks require one of these identifiers for credit applications. Without an SSN or ITIN, options may be limited.
• Proof of Income: Banks may request evidence of a steady income source (such as part-time employment or a stipend). For students who don’t work, a lack of income can complicate approval.
• Co-signer Requirements: Some credit cards may require an American guarantor who is responsible for any potential debt.

While it is possible for international students to secure a credit card, the process and requirements can vary depending on the bank and the type of card applied for.

Why Establishing Credit History Is Crucial for International Students

Building a credit history isn’t just about owning a credit card—it’s a key component of financial independence. A good credit history can help international students:

• Obtain Loans or Mortgages: After graduation, students planning to stay in the country may need a loan for a car or mortgage. A strong credit score is a prerequisite.
• Rent Apartments: Many property owners and landlords review an applicant’s credit score as part of the rental approval process.
• Secure Employment: While less common, some employers check credit reports (within legal bounds) as part of their hiring process.
• Qualify for Better Financial Products: A higher credit score translates to higher credit limits, lower interest rates, and better perks on premium financial products.

Starting early can allow international students to position themselves for long-term financial success.

ALSO READ: Clarendon Fund Scholarships For International Students

Challenges International Students Face When Applying for Credit Cards

Despite the benefits, international students face common obstacles when applying for a credit card in a foreign country. These include:

1. Lack of Credit History

• Many students arrive without any existing credit history, which makes banks hesitant to approve applications. It’s a classic chicken-and-egg problem—you need credit history to get a credit card, but you need a credit card to build that history.

2. Income Verification

• Students without jobs or reliable income streams often struggle to meet the financial institution’s income criteria. Part-time jobs may not always count as stable income.

3. Lack of SSN/ITIN

• Not every international student qualifies for an SSN, which is often tied to employment in the U.S. This limits the range of credit card options available.

4. Higher Interest Rates or Fees

• Even if a credit card application is approved, issuers might charge higher interest rates for students they consider “high-risk”.

Knowing these barriers allows students to seek solutions that fit their unique circumstances.

Strategies to Improve Eligibility and Secure a Credit Card

If you’re an international student wondering how to overcome these hurdles, here are actionable steps to take:

1. Apply for an ITIN

• If you don’t qualify for an SSN, consider getting an ITIN through the IRS. Many financial institutions accept ITINs for credit card applications.

2. Start with a Secured Credit Card

• A secured credit card requires an upfront deposit (which acts as collateral). While these cards have limited spending limits, they’re ideal for building credit until you qualify for traditional credit cards.

3. Establish a Bank Account Early

• Open a checking or savings account with a bank as soon as you arrive. Maintaining a positive banking relationship can improve your chances of credit card approval.

4. Find Cards Tailored to International Students

• Some issuers, such as Deserve, provide credit cards designed with international students in mind. These cards don’t require an SSN and cater to students with limited credit histories.

5. Consider a Co-signer

• If you have a trusted family member or friend based in the U.S. with a strong credit score, they can co-sign your application to boost your eligibility.

6. Prove Steady Income

• If you have a part-time job, internship, or scholarship stipend, prepare documentation to demonstrate your income stability.

Approaching credit applications strategically can help students improve their likelihood of approval.

Alternative Financial Tools for International Students

If credit cards remain inaccessible, there are alternative tools international students can use to manage their finances responsibly:

• Prepaid Debit Cards
• These cards allow you to load money and make purchases without needing approval from a bank.
• Bank Debit Cards
• Once you open a checking account, most banks provide complimentary debit cards connected to your account balance.
• Mobile Wallets & Payment Apps
• Tools like PayPal, Venmo, or Apple Pay enable cashless transactions without the need for a credit score.
• Online Money Transfer Services
• For students frequently transferring money abroad, platforms like Wise (formerly TransferWise) or Remitly help with affordable international transactions.

While these alternatives don’t build credit history, they are practical solutions for essential day-to-day payments.

Conclusion:

For international students embarking on their educational journeys abroad, managing finances effectively is crucial. While applying for credit cards may initially seem challenging, there is a clear path to overcoming these obstacles through diligent planning and research.

Partner with reputable banks and financial advisors who specialize in serving international students’ unique needs. Banks like Deserve, Capital One, and Chase often have student-friendly options designed to make financial independence more accessible.

Looking for guidance on where to start? Talk to one of our financial advisors for personalized assistance in securing the right financial tools for your needs.