How International Students Can Get A Credit Card

Last updated Feb. 24, 2025 by Charles Zemub

Navigating the financial landscape in a new country can be challenging for international students. Among the many tasks they must tackle, securing a credit card often ranks as a top priority. A credit card not only provides a convenient payment method but also plays a crucial role in building a credit history in the host country. However, international students face several unique challenges when applying for credit cards. This article explores these challenges and provides a comprehensive guide on how international students can obtain a credit card.

Understanding the Importance of Credit Cards for International Students

Before diving into the "how", it is vital to understand the "why". Credit cards serve multiple functions:

1. Building Credit History: A good credit history is essential for future financial endeavors, such as renting an apartment, buying a car, or getting a mortgage. Starting early by responsibly managing a credit card account can greatly benefit students in the long run.

2. Convenience and Security: Credit cards offer a hassle-free way to manage transactions, eliminating the need to carry large amounts of cash. They also provide fraud protection, which is a significant security advantage over using debit cards or cash.

3. Managing Budget and Expenses: With monthly statements and expense tracking features, credit cards can help students maintain a budget and manage their expenses effectively.

4. Rewards and Benefits: Many credit cards come with rewards programs, offering cashback, travel points, or other perks that can be particularly beneficial for international students.

Challenges Faced by International Students

While the importance of having a credit card is clear, international students encounter several obstacles when trying to obtain one:

1. Lack of Credit History: International students seldom have a credit history in the host country, making it difficult to qualify for traditional credit cards right away.

2. No Social Security Number (SSN): In the United States, for example, financial institutions often require a Social Security Number to open a credit card account, which many international students do not have.

3. Limited Income: Credit card issuers typically assess the applicant’s income to determine eligibility. International students who rely on scholarships, part-time jobs, or parental support may not meet the income requirements.

4. Visa Regulations: Certain visa restrictions may also complicate financial decisions, including applying for a credit card.

Steps to Obtain a Credit Card

Despite these challenges, there are several pathways international students can take to secure a credit card:

1. Explore International Student-Friendly Credit Cards

Some financial institutions offer credit cards specifically designed for international students. These cards often require little to no credit history and may have lower income requirements. Research banks in your host country to find such options.

2. Apply for a Secured Credit Card

Secured credit cards are an excellent starting point for building credit. These cards require a cash deposit as collateral, which typically serves as the credit limit. As you make payments on time, your credit score improves. After demonstrating responsible credit behavior, you may qualify for an unsecured credit card.

3. Get a U.S.-Based Credit Card with Your Passport

Some major banks offer programs that allow international students to apply for a credit card using only a passport and student visa. These programs might have additional requirements or higher interest rates, so it’s crucial to understand the terms before applying.

4. Apply with a Co-Signer

If possible, international students can apply for a credit card with a U.S.-based co-signer who has an established credit history. A co-signer shares responsibility for the account, which may ease the approval process. However, not all credit card issuers allow co-signers.

5. Consider a Credit Card from Your Home Country

Some international banks have branches in multiple countries. If your home country’s bank operates in your host country, you might be able to apply for a credit card through them. This could simplify the process and circumvent some of the common obstacles.

6. Use an International Student Loan

Though not a typical credit card, student loans often offer similar benefits, such as building credit history. Use these loans responsibly to demonstrate financial reliability, paving the way for future credit card applications.

7. Maintain Employment and Income Documentation

Keep documentation that verifies any source of income, whether it’s from part-time work, scholarships, or family. Banks may require proof of income, so having pay stubs, bank statements, or award letters can support your credit card application.

8. Open a Bank Account with a Local Bank

Establishing a relationship with a local bank can sometimes make it easier to apply for a credit card. Start by opening a checking or savings account to demonstrate financial responsibility and gradually work towards applying for a credit card through the same bank.

Best Practices for Managing Credit Cards

Once an international student has obtained a credit card, managing it responsibly is crucial:

• Pay Balances in Full: To avoid interest charges and building debt, aim to pay off your balance every month.

• Monitor Spending: Keep track of your expenditures to ensure you stay within your budget and your credit limit.

• Keep an Eye on Your Credit Score: Regularly check your credit score and report to catch any inaccuracies or potential identity theft.

• Avoid Opening Multiple Accounts: Initially, sticking to one credit card can help you manage your credit more effectively and make it easier to track your financial activities.

• Be Aware of Fees: Understand the fees associated with your credit card, including annual fees, foreign transaction fees, and penalties for late payments.

Conclusion

Obtaining a credit card as an international student presents several challenges, but by exploring the available options and employing strategic methods, these hurdles can be overcome. Whether through specialized student credit cards, secured cards, co-signers, or institution-specific programs, there are multiple pathways students can pursue. The ultimate goal is not only to gain access to credit but also to responsibly manage it to build a solid financial future.

FAQs

1. Can international students apply for a credit card without a Social Security Number?

Yes, some banks allow international students to apply for credit cards using their passport and student visa. Additionally, secured credit cards are available without an SSN.

2. What is a secured credit card?

A secured credit card requires a cash deposit that serves as collateral. This deposit often equals the credit limit, and using a secured card responsibly can help build credit history.

3. Are there specific credit cards for international students?

Yes, certain banks offer credit cards designed for international students that require less stringent criteria for approval.

4. Can I apply for a credit card with a co-signer?

Yes, having a U.S. co-signer with good credit can improve your chances of getting approved for a credit card.

5. How can I build my credit score as an international student?

Start with a secured credit card, maintain low credit utilization, make timely payments, and monitor your credit report regularly.

6. Are there credit cards that offer rewards for international students?

Some student-specific credit cards do offer rewards such as cashback or points. However, it’s important to evaluate the terms before applying to ensure they suit your needs.