Credit Builder Loan Without SSN: How To Do It And If You Should
Building credit is essential in the U.S. A credit builder loan is one way to do so. We’ll explore how to do it and if you should.
Credit is a nearly inescapable fact of American life. You need credit to rent or buy a home and car, be approved for a credit card, and take out a personal or business loan. That’s why it’s important to start working on your credit score as quickly as you can.
We’ll show you how to check your credit report without an SSN, how to check your credit score with an ITIN number, how to build credit using a credit builder loan, and why you should.
How to pull your credit report without a Social Security Number
Your credit report is a record of your credit history and how well you’ve managed debt. A credit report includes:
Number of accounts
Types of accounts
Account balances
Payment history
Negative marks
You don’t need an SSN to get copies of your credit report, but you do need to request it from each credit bureau individually rather than going through AnnualCreditReport.com.
How to check your credit score with an ITIN Number
Your credit report and credit score aren’t the same things. Your credit score is a number generally between 300-850. The number is calculated based on the information in your credit report. Each bureau has its own formula, so your score will vary depending on where you’re seeing it. The higher your number, the better, and anything over 760 will typically get you the best interest rates on loans.
You can get an ITIN number online application which is IRS form W-7, here, and having an ITIN can be helpful when checking your credit score. Experian includes your credit score with your credit report, but the other two bureaus charge for your score. There are plenty of places to check your credit score for free. Many credit cards, including Petal, give customers free credit scores, as do some banks.
How to increase your credit score without an SSN
One of the best ways to build credit or increase your credit score is by opening a credit card. Doing so can add an account to a thin credit file for those wanting to build credit and can lower utilization for those wishing to increase their credit score.
It may be easier for those with little or poor credit to be approved for a secured credit card than a traditional one. Sable Card is a secured credit card and does not require an SSN to apply.
A credit card can only help your credit score when used responsibly. That means only using the card to buy things you could afford without credit and paying the card off in full each month.
Getting a credit builder loan without an SSN
For those who already have a credit card or two or who don’t want to have a credit card, a credit builder loan is an excellent option for building your credit history, and you don’t need a Social Security Number to apply.
A credit builder loan is usually for $1,000 or less. The money you borrow is held in a secured savings account, and each month, you make a payment towards the loan. The bank reports your payments to at least one of the credit bureaus, and as long as the payments are on time, it builds and improves your credit.
Once the loan is paid off, the money is released to you. SeedFi offers credit builder loans and reports to all three credit bureaus. A credit builder loan is also a great way to save an emergency fund.
Upwardli and Your Credit Journey
Building and improving your credit doesn’t have to be difficult, and it can happen faster than you might think. If you have the right tools, that is. Upwardli can help you find the best tools from trustworthy financial service providers who understand the unique circumstances that you face as a new immigrant to the United States.
