Obtain credit with your ITIN
Sean Salas
By: seansalas
Read in 11 minutes

Can I Get Credit Only with an ITIN?

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Immigrants living in the United States without Social Security Number (SSN) have experienced in the past many limitations to banking and financial services. Luckily, that’s changing. Even if there are still a few restrictions, it’s easier now for immigrants to open bank accounts, build their credit history, and even apply for credit cards and some types of loans. How? With an ITIN (Individual Tax Identification Number). You may have heard the opposite, so let’s make this clear for once:

The myth: Foreigners with no Social Security Number and only with an ITIN can’t build their credit history or access loans and other forms or credit. 

The truth: It is true that ITIN holders without a SSN 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.

So, yes, as an immigrant or non-resident, it is possible to get a loan without a SSN and use an ITIN instead. If that’s your situation, you can also access other types of credit and benefits. Let’s see how.

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 (something that everybody in the US must do, regardless of their immigrant status).

If you don’t have either a SSN or an ITIN, it is highly recommended that you get the second one as soon as possible. Contrary to a SSN, there are not any restrictions or special requirements to apply for an ITIN, and the process is pretty simple. An ITIN will improve your financial future in the United States because you’ll be able to open a bank account, create a credit history, pay taxes, obtain a US driver’s license, and to receive a business loan and other types of credit. The benefits form all the above are huge.

These are the 5 steps to obtain your Individual Tax Identification Number:

1. Fill out the Form W7 (available also in Spanish).

2. Include 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. 

3. Include your tax return: this may look confusing. You need an ITIN to declare your taxes, and you need your tax return to apply for an ITIN. It’s easier than it looks: you submit both at the same time, so both are processed simultaneously.

4. Send everything to an IRS office.

5. Wait for your Individual Tax Identification Number to arrive. The process takes four to six weeks to complete.

If you need to know more about the process and access all the information (forms in both languages, documents required, addresses to send everything, etc.) we recommend you to read the article 5 steps to submit an ITIN application.

Learn how to get your ITIN: 5 steps to submit an ITIN application

How Can an ITIN Help You Access Business Financing?

Building good personal credit history is a prior step, crucial to obtain business financing. This is how an ITIN can help you build your 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.

Learn here other reasons why it is important to have good credit, and how a good credit can help you in the US

Besides establishing credit history with an ITIN, a business owner also needs to get 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:

  1. Establish personal credit with ITIN (in lieu of SSN)
  2. Apply for an EIN using an ITIN
  3. Establish/apply for business credit using your EIN with the right lender

Learn it here: What is an EIN and how to apply for it?

How can Camino Financial help you if you only have your ITIN?

Borrowers at Camino Financial don’t need a SSN to apply for a business loan. They don’t need good credit either. We don’t even require collateral! At Camino Financial we approve business loans up to $400,000 and offer business solutions for applicants who only have their ITIN. And that’s not all: 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. If you are ready to take the step and finance your business, simply submit your online application. It will only take you a few minutes, it won’t affect your credit, and soon we’ll contact you with a quote.

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

Places to apply for a credit card with an ITIN only

If you feel you’re not ready for a business loan yet, consider the idea of applying for a credit card: it’s one of the easiest and fastest ways to access funds, and something very recommendable to start building your credit history. Check out these two options:

Stores

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 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. Learn here how.

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)

To sum up, many foreign entrepreneurs think they cannot build their credit or access business funding without being an American citizen or resident. Although they have fewer credit options, there is still a way for them to access credit and many other opportunities to invest in their business and make it grow.

Now that you know it’s absolutely possible, continue reading to learn how to get an ITIN loan for your business. And remember Camino Financial is always a possibility. We leave no business behind. If you are ready to take the step and apply for one of our small business loans, simply fill out this online application.

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