Getting personal loans with ITIN number is possible, and also are available different types of loans for immigrants.
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, get credit cards, and also apply for business loans.
How? With an ITIN (Individual Tax Identification Number).
What is an ITIN?
An ITIN number is an Individual Tax Identification Number and is a tax processing number issued by the Internal Revenue Service of the United States.
Even if you don’t have either an ITIN or an SSN, the ITIN allows you access to personal loans, so it is highly recommended that you get the second one as soon as possible.
You can get a personal loan by applying for an ITIN number. These are available for foreigners, nonresident aliens, dependents, and spouses. Of course, they must be ready to pay federal taxes due to something that everybody in the U.S. must do, regardless of their immigrant status).
Getting a personal loan with an ITIN number will improve your financial future in the United States because you’ll be able to open a bank account, improve your credit score, create a credit history, pay taxes, obtain a US driver’s license, and receive a business loan and other types of credit.
ITIN vs SSN
|What does it stand for?||Individual Tax Identification Number||Social Security Number|
|What is it?||It is a nine-digit number issued to nonresident aliens||It is a nine-digit number issued to citizens and permanent residents|
*Contrary to an SSN, there are not any restrictions or special requirements to apply for an Individual Tax Identification Number, and the process is pretty simple.
Can an ITIN be used as SSN?
It depends. You can use this number to file your taxes and open a bank account. But it cannot be used instead of an SSN in situations like receiving social security benefits, or as an ID.
How Can You Get an ITIN? Apply for an ITIN
Getting personal loans is easy, and getting your ITIN number is too! These are the 5 steps to obtain your Individual Tax Identification Number:
- Fill out Form W7 (available also in Spanish). Your form W7 is basically your application to get an ITIN.
- With your form W7, include proof of identification, which can be a country identification card, driver’s license, medical records, school records, and other documents approved by the IRS.
- With your form W7, you should also include your tax return: this may look confusing. So you need both things at the same time? Yes. You submit both documents at the same time, so both are processed simultaneously.
- Send everything (your form W7, your tax return, and any other attachments) to an IRS office.
- Wait for your Individual Tax Identification Number to arrive. The process takes four to six weeks to complete.
Here you’ll find more info about the process and access all the information you need: 5 steps to submit an ITIN application
Can I Get A Personal Loan With An ITIN Number? The Myths And The Truths
Getting a personal loan with an ITIN number is only one of the myths around this, but is it true? Let’s find out!
Foreigners with no Social Security Number and only with an ITIN can’t build their credit score or access loans and other forms of credit.
ITIN holders that don’t have an 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 with an Individual Tax Identification Number 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 an SSN and use an ITIN or Individual Tax Identification Number instead.
If that’s your situation, you can also access other types of credit and benefits. Let’s see in detail what is an Individual Tax Identification Number, how you can get one, and how this number can help you access credit.
In summary, the critical steps to affordable business financing are:
- Establish personal credit with it (instead of SSN)
- Apply for an EIN. Learn how to start a business with a tax number.
- Establish/apply for business credit using your EIN with the right lender
Can You Build Credit With An ITIN Number? How to Improve Your Financial Health?
Building a good personal credit history is a prior step, crucial to obtain business financing. This is how to build credit with ITIN number:
- 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.
- 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 Individual Tax Identification Number to get credit, the transaction gets reported to the credit bureaus and helps them collect information.
- 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.
- 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, 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 a 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. Learn how to verify your EIN number.
Can I Get a Credit Card With An ITIN Number?
Consider the idea of applying for personal loans with ITIN number or a credit card. This last one 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:
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, it 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 a 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.
2. What banks accept ITIN number?
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. You can access personal loans with ITIN number or a credit card. Here’s a quick rundown of issuers and where their policy currently stands on this:
|American Express||Accepts an ITIN, foreign passport, or other government-issued ID.|
|Bank of America||Accepts 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||It does not require SSN or ITIN. They 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.|
Use Your ITIN To Help Your Business Thrive
Many foreign entrepreneurs think they cannot build their credit or access funding without being American citizens or residents. 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.
The answer relies on applying for an ITIN using Form W7 provided by the IRS.
Remember, Camino Financial is always a possibility if you want to get funding for your business. We leave no business behind.
Are you ready to take the step and apply for one of our small business loans?