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      1. The White Paper for F1 Students
      2. F-1 Living in U.S.
      3. Finances

      F-1 Finances: Credit Cards for New International Students

      This article introduces types of credit cards suitable for international students, outlines the application process, and offers tips on how to use credit cards wisely.

      In the U.S., 84% of people own a credit card. A credit card can be used not only for purchases but also for building your credit score. A good credit score is crucial for many aspects of life in the U.S., from getting a mobile phone plan and renting an apartment to finding a job. The most common way to build a credit score is by using a credit card and maintaining a good repayment history.

      However, international students without a Social Security Number (SSN) have limited options when it comes to applying for a credit card. This article will introduce some credit cards suitable for international students without an SSN and provide tips on using credit cards wisely.

      Credit Cards Suitable for New International Students

      Secured Credit Cards

      Best for: Students without an SSN or credit history.

      Note:

      Unlike regular credit cards, secured cards require you to deposit a certain amount of money in advance, which serves as your credit limit.

      Here are some recommended secured credit cards:

      1. Bank of America Secured Credit Card

      • Pros: Offers a relatively high credit limit, ranging from $200 to $4,900. After one year of responsible use, you may be eligible to upgrade to a regular Bank of America credit card.

      • Rewards: You can choose a category of purchase for 3% cashback, plus 2% cashback at grocery stores and wholesale clubs.

      2. Citi Secured Credit Card

      • Pros: Its credit limit ranges from $200 to $2,500. After a year, you can apply to upgrade to a regular Citi credit card.

      • Rewards: No cashback rewards.

      Credit Cards

      Best for: Students with an SSN but no credit history (some cards do not even require an SSN).

      1. BOA Customized Cash Rewards (No SSN Required)

      • Pros: Does not require an SSN. If this is your first credit card, you will need to apply at a Bank of America (BOA) branch, as online applications are not available for first-time applicants. If you already have a BOA checking account, you can apply online and potentially earn a sign-up bonus of $200 after spending $1,000 within the first 3 months.

      • Cons: There is a foreign transaction fee, so using this card outside of the U.S. will result in additional charges.

      • Rewards: Choose one of the following categories for 3% cashback: online shopping, phone and internet bills, dining, gas and electric vehicle charging, pharmacy, home improvement, or travel.

      2. Discover it (SSN Required, Student Version Available)

      • Pros: Can be used internationally with no foreign transaction fees. The student version does not require any prior credit history, making it ideal for first-time credit card applicants.
      • Cons: Requires an SSN.
      • Rewards: 5% cashback in rotating categories each quarter, and 1% cashback on all other purchases. Additionally, new cardholders will receive double cashback in the first 12 months—10% in the rotating categories and 2% on all other purchases. Note that the doubled cashback will be credited after the 12-month period ends.

       

      Steps to Apply for a Credit Card

      1. Choose the Right Credit Card: Select a credit card that suits your needs.

      2. Prepare Application Documents: Gather necessary documents, including your passport, I-20 form, and bank statements.

      3. Submit Your Application: Apply online or visit a bank branch to submit your application in person.

      4. Wait for Approval: Once your application is approved, the bank will mail the credit card to your address.

       

      Credit Card Tips

      • Pay on Time: Maintain a good payment history by avoiding late payments.

      • Manage Spending: Keep your spending under control to avoid excessive debt.

      • Understand Fees: Be aware of your credit card’s annual fees, interest rates, and other associated costs.

      • Regularly Check Statements: Review your credit card statements regularly to ensure there are no unauthorized charges.

       

      Other Ways to Build Credit

      • Pay Bills on Time: Making timely payments for utilities, phone bills, and other recurring expenses can help build your credit.

      • Rental Payment History: Paying rent on time can contribute to your credit history.

      • Maintain Good Bank Account Records: Keeping a positive bank account history can also enhance your credit scores.