Obtain credit with your ITIN
Sean Salas
By: seansalas
Read in 7 minutes

Can I Get Credit Only with an ITIN?

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Myth: Foreigners with no Socia Security Number (SSN) and only with Individual Tax Identification Numbers (ITIN) can’t build their credit history.

Truth: It is true that ITIN holders initially are limited in the type of credit they can immediately access. But like any American resident, there are several ways for non-residents without SSN to slowly build their credit and open more doors to finance their personal and business endeavors.

What Is an ITIN and How Can I Get It?

Foreigners, non-resident aliens, their dependents, and spouses can apply for an Individual Tax Identification Number (ITIN) as soon as they are ready to pay federal taxes. One can obtain an ITIN by submitting a Form W7 along with a proof of identification, which can be a country identification card, driver’s license, medical records, school records and other documents approved by the IRS. If applicants need assistance, they can apply with the assistance of agents authorized by the IRS. Applications are available online and the process takes four to six weeks to complete.

How Can an ITIN Help You Access Business Financing?

Building good personal credit history is crucial to obtain business financing. There are several factors that enable an ITIN to build a foreigner’s credit:

  1. The ITIN is accepted by many financial institutions to verify identification when granting loans or issuing credit cards. This slowly adds and builds up the borrower’s credit record and standing.
  2. There are three giant credit bureaus TransUnion, Experian and Equifax in the United States. These companies make the credit history and standings of individuals. When borrowers use their ITIN to get credit, the transaction gets reported to the credit bureaus and helps them collect information.
  3. The more successful transactions one does with their ITIN, the stronger their credit history becomes. This, in turn, helps one access credit to invest in a business.
  4. When using an ITIN for a transaction, one should use the same name and initials as any change will create a new identity record, and as a result, the new credit will not build one’s credit history. Also, ITIN holders should report any change of address to the IRS.

In addition to associating personal credit history with an ITIN, a business owner also needs to establish an Employer Identification Number (EIN) usually required when applying for business credit. To apply for an EIN, immigrants without SSN can use an ITIN. In summary, the key steps to affordable business financing are: i) establish personal credit with ITIN (in lieu of SSN); ii) apply for an EIN using an ITIN; and iii) establish/apply for business credit using your EIN with the right financing partner.

No SSN? No problem! At Camino Financial we approve your business loan with your ITIN

At Camino Financial we approve business loans up to $400,000 and offer business solutions for applicants who only have their ITIN. We help you understand your funding options and guide you to select the small business loan that is the best fit for you and your business.

Places to apply for a credit card with an ITIN only

1. Stores

One of the easiest and fastest ways to get credit is through a credit card. Some furniture and home improvement stores, jewelry stores and department stores offer credit cards without SSN. Check the stores in your area since the requirements may differ. Also, bear in mind that while your SSN may not be asked for, they may have other requirements.

Opening a store card is an ideal way for someone with a lower credit score to begin rebuilding his or her credit. Getting approval for the credit card increases a person’s credit limit. It also diversifies their types of credit. But it only helps if you use the card wisely.

2. Banks and credit card issuers

Many banks and credit card issuers ask for Social Security Number on the card application. The good news is that some issuers will accept an ITIN instead. Here’s a quick rundown of issuers and where their policy currently stands on this:

  1. American Express                 Accepts an ITIN, foreign passport or other government-issued ID.
    Bank of AmericaAccepts an ITIN, foreign passport or other government-issued ID. Requires SSN for online applications.
    Citi®  For certain cards, Citi® will accept a copy of one of the following: passport, national ID card or other valid government-issued ID. Must apply in person at a Citibank branch.
    Capital One®Accepts ITIN or SSN only.
    SelfScore Classic MasterCard                                                                   Does not require SSN or ITIN. Will request your passport, U.S. student visa, most recent Form I-20 and latest U.S. bank account statements. Available only to international students studying in the U.S.

    (Source: Kredit Karma)

And always bear in mind: one cannot buy a house nor apply for student loans or any government loans with an ITIN only.

Tu sum up, many foreign entrepreneurs think they cannot build their credit without being an American citizen or resident. Although they have fewer credit options, there is still a way for them to access U.S. credit markets that will help them invest in the future prosperity of their business.

Visit our blog for all the answers about credit and how to build it.

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