How to Get a Credit Card in the USA for New Immigrants
As a new American, you have a lot of adjustments to make- and how to get a credit card in the USA for immigrants is just one of them. There are many ways immigrants can establish credit in the U.S. This article will help you figure out how to get a credit card in the USA for new immigrants. This article will also help you learn about other financial options like secured cards to build credit as a new immigrant.
Why Credit is Important for Immigrants
As an immigrant, you may ask yourself why you should get an American credit card. A U.S. credit card is very important to establishing your life in America. You need good credit to rent an apartment, buy a car, and sometimes even to get a job.
While you may have established credit in your native country, that credit may not translate to America. International credit bureaus don’t often transfer credit reports to the U.S. You may be able to transfer your credit card from your native country in some instances. However, once you move to America, you often have to start over and get U.S. credit.
What are the Best Credit Cards for Immigrants?
You should look for credit cards with no or low annual fees and low interest. Annual fees for the cards shouldn’t exceed $40. The best credit cards for immigrants also shouldn’t exceed 3-5% for balance transfers or international transactions.
Try to choose cards that give you rewards when you use the card. You can also pick a card that gives you cash back on your credit card purchases.
What is a Secured Credit Card?
One way to establish credit for immigrants is through a secured credit card. A secured credit card is a credit card that is connected to whatever cash you deposit into a credit account. For example, if you deposit $100 into your secured credit card account, your account limit will be $100. When you choose a secured card, you have to make sure that you have enough in your bank account to cover the secured card charges.
Some of the best secured credit cards for new immigrants include the Capital One Secured Credit Card and the Discover It Secured Credit Card.
What is Required to Apply for a Secured Credit Card?
You can apply online for a secured credit card. Some information you may need to include for a secured credit card application include:
A taxpayer ID number. While a social security number isn’t required for a secured credit card, a taxpayer identification number (TIN) can help you establish your identity in the credit system.
Employment. If you have a job, you are more likely to show your creditworthiness.
A bank account. When you have a bank account, that’s another indicator that you can pay the balance on a credit card.
Once you obtain a secured credit card, you have to pay the balance on time every month. Once the credit card company sees that you are paying off your debts in a timely manner, you can move on to apply for an unsecured credit card.
What is an Unsecured Credit Card?
An unsecured credit card is also an option as a credit card for immigrants. They don’t require you to have a credit history or a security deposit like secured credit cards require. Some of the best unsecured credit cards include the Petal card and the Indigo Mastercard.
Can Credit Cards for Immigrants Have Co-Signers?
If you’re looking for the best credit card for green card holders, you may need the help of a co-signer. When you have a co-signer for a credit card, a friend or family member agrees to be responsible for your credit card debt. If you pay off your balance each month on time, that can help build your credit history in the U.S.- and preserve your co-signer’s good credit, too.
Can Immigrants Be Authorized Users on Credit Cards?
If you don’t feel ready to apply for your own credit card for immigrants but still need help, you can be an authorized user on a person’s credit card. When you’re added as an authorized user, you can use a person’s card and receive all the privileges of the original credit card user. Just make sure to make payments on time in full so you don’t damage the main credit card holder’s credit. If you’re an authorized user, that can build your credit history.
Can You Get a Credit Card as an Undocumented Immigrant?
When you’re navigating how to find credit cards for undocumented immigrants, there can be complications. Credit card issues aren’t required to ask you your citizenship status before you apply for a credit card. If you’re an undocumented immigrant, you can apply for a credit card and use your taxpayer ID.
What Are Alternatives to Credit Cards for Immigrants?
If you’re searching for the best credit cards for permanent residents and immigrants but are unable to, there are alternatives. You can join a credit union to help you build your credit history. Credit unions are member-owned banks that offer credit cards that can help you build your credit. You can also pay your rent on a regular basis to build your credit history. Your landlord may report your payments to credit bureaus and that could help you create credit in the U.S. If that’s not possible, you can just use debit cards for immigrants to have some electronic payment history.
Searching for credit cards as an immigrant can be difficult. However, there are many options and online services to start your credit journey in the U.S.
