Applying for Credit Card With an ITIN
For many major life events, including as purchasing a car, qualifying for a mortgage, seeking to rent an apartment, and more, having credit history is essential. The acquisition of a credit card is among the simplest ways to begin establishing credit.
The majority of credit card applications do, however, request a Social Security number (SSN). For those without one, including certain immigrants, nonresidents, and international students, this presents a challenge.
Can you still get a credit card or open a bank account to fund a secured credit card if you don't have an SSN? Of course, however you'll need to substitute something else for the SSN. Enter your ITIN, which stands for Individual Taxpayer Identification Number. This number could be the key you need to unlock the door to credit that has eluded you.
The Internal Revenue Service (IRS) issues individual taxpayer identification numbers (ITINs) as a means of processing taxes, according to the IRS. People who need a U.S. taxpayer identification number but are unable to apply for or obtain a Social Security number (SSN) from the Social Security Administration (SSA) receive ITINs from the IRS.
ITINs are obtained by submitting IRS form W-7. The good news is that many lenders will accept an ITIN in place of an SSN, despite the fact that the website claims the number is only for tax purposes. The government does not track unauthorized people via ITIN, which is further good news. Because Section 6103 of the Internal Revenue Code forbids the sharing of tax information, the IRS does not provide this information to immigration authorities.
One of the key distinctions between an ITIN and an SSN is that the latter accompanies you from birth to death. You don't have to do anything to keep your number. However, ITINs must be used to submit a federal tax return at least once every three years in order to continue to be valid. The number will typically remain the same, though, just like the SSN (even if it expires and is later renewed).
Application submission with an ITIN
If you have an ITIN rather than an SSN, the application procedure is essentially the same. You will utilize a nine-digit ITIN in place of a nine-digit SSN. However, you must pick a card first before applying.
Your application score may suffer if you apply and are rejected, therefore you should be pretty certain that you will be accepted before submitting your application. If you require assistance selecting a card, take into account the following suggestions.
Think about secured cards
With secured credit cards, you must pay the lender a deposit up front. The majority of the time, this deposit is matched by your credit limit. These cards are typically simpler to qualify for because they enable the lender to lower its risk while still providing you with a credit line. Additionally, the deposit is typically returnable, and once your credit improves, you can frequently graduate to an unsecured card. A secured card is an excellent option to start with and add positive information to your credit file because of this.
Think about student IDs
Additionally, there are credit cards available for students with softer credit standards. ITINs are also frequently accepted in place of SSNs. International students can also get credit cards, and many student cards provide benefits like cash back.
What happens next
You should be aware that applying for any credit card may cause your credit score to slightly decline. But if you're accepted, the increased credit line you now have should more than make up for that in a few months. Be careful how you utilize the card once you obtain it. Above all, make sure to pay your bills on schedule. Including all of your bills, not just your credit card bill.
Additionally, be sure to maintain the lowest balances possible. Your credit utilization ratio, which is only second to on-time payments, is impacted by this. However, maintaining a low balance can benefit you in multiple ways, including lowering or avoiding interest fees. Additionally, if this is your first credit card, it's possible that the rate is not the greatest. But if you don't have any debt, the interest rate won't matter.
ITIN holders have access to credit cards. You can improve your chances of acceptance and begin the process of constructing your score with knowledge by doing your research before applying. Apply Now and Good luck!