Credit cards are widely used in the United States as a payment tool and a means to build credit history. They offer better security and benefits compared to debit cards. For a detailed introduction to the advantages and benefits of credit cards, please refer to the credit card section. Most credit cards require a credit history for application. Typically, Americans accumulate credit history by being authorized users on their parents’ credit cards. However, most new international students do not have a credit history, so they can only choose entry-level credit cards that do not require credit history. In this section, we will primarily introduce beginner cards for individuals who have just arrived in the United States and how to apply for international student credit cards.
Credit cards for individuals with no credit history generally do not require an annual fee, but secured credit cards do require a deposit (which is refundable). Some zero credit history credit cards can be applied for without a Social Security Number (SSN). The credit limit for the first credit card is typically around $500 to $1,800, and it usually takes six months or more to have a chance of increasing the credit limit.
When you have a low credit limit, it’s important to be mindful of your credit utilization. Credit utilization refers to the percentage of your available credit that you are currently using.
First Credit Cards Without SSN
Deserve Edu
Application Method: Online application is available for both F1 and J1 visa holders.
Sign-up Bonus: You can receive a $30 sign-up bonus and reimbursement for one year of Amazon Student membership fee (valued at $59). Additionally, you can earn additional rewards by referring friends through the referral link.
Card Rewards: The credit card offers a 1% cashback on all purchases.
Benefits: The card provides benefits such as no international transaction fees, rental car insurance, and cell phone insurance.
Card Network: The credit card operates on the Mastercard network.
BoA Cash Customized Rewards
Application Method: For individuals with no credit history, it is recommended to open an account first and then apply in person at the counter. It’s important to note that before applying for the credit card, it’s generally advisable to have a minimum deposit of over $1,500.
Sign-up Bonus: If you spend $1,000 within the first three months of opening the card, you will receive a $200 bonus.
Card Rewards: The credit card offers cashback rewards.
You can choose one category for 3% cashback (usually recommended for online shopping), 2% cashback at supermarkets and wholesale clubs, and 1% cashback on all other purchases. There is a quarterly maximum cashback limit of $2,500.
Benefits: The card provides extended BankAmeriDeals and Visa Signature consumer benefits (note that car rental insurance was removed in February 2021).
Card Network: The credit card operates on the Visa network, and it can be used at Costco.
BoA Cash Unlimited Rewards
Application Method: For individuals with no credit history, it is recommended to open an account first and then apply in person at the counter. It’s important to note that before applying for the credit card, it’s generally advisable to have a minimum deposit of over $1,500.
Sign-up Bonus: If you spend $1,000 within the first three months of opening the card, you will receive a $200 bonus.
Card Rewards: The credit card offers cashback rewards.
Unlimited: You will earn 1.5% cashback on all purchases without any maximum limit.
Benefits: The card provides extended BankAmeriDeals and Visa Signature consumer benefits (note that car rental insurance was removed in February 2021).
Card Network: The credit card operates on the Visa network, and it can be used at Costco.
BankAmeriDeals Specific merchant cashback offers can reach up to 20%. To utilize these offers, you can access them through the online banking platform or app, where you will find discounts available for certain merchants and restaurants. By selecting and adding these offers, you will be eligible to receive the corresponding cashback for each transaction made with those merchants.
First Credit Cards With SSN
Discover it Student Cash Back
Application Method: The credit card can be applied online. Both F1 and J1 visa holders are eligible to apply.
Sign-up Bonus: Upon card activation and qualifying purchases, you can receive a $100 bonus (limited to applications made through a referral link).
Card Rewards: The credit card offers cashback rewards, with 5% cashback on rotating quarterly categories and 1% cashback on all other purchases. In the first year, all cashback rewards earned are doubled.
Benefits: The card provides a yearly $20 statement credit (for maintaining a GPA above 3.0) and has no international transaction fees. Other specific consumer benefits are not mentioned.
Card Network: The credit card operates on the Discover network, which is shared with JCB and UnionPay, allowing usage in Japan and China.
Discover it Credit Card Supplementary Documents After Application
Proof of Address: A bank statement can be submitted as proof of address.
Proof of Name: Your Social Security Number (SSN) card can serve as proof of name.
Proof of Enrollment: A student ID can be provided as proof of enrollment.
SSN Card: Your Social Security Number (SSN) card is required.
Chase Freedom Rise
Application Method: Requires SSN and can be applied for online or at a branch. Sign-up Bonus: Set up auto-pay within three months to earn 2,500 Ultimate Rewards (UR) points. Card Rewards: Earn UR points at a rate of 1.5x for all purchases.
Benefits: Receive 2,000 UR points annually, rental car insurance, extended warranty, and Chase offers among other consumer benefits.
Card Network: The credit card operates on the Visa network and can be used at Costco.
Chase offer Utilizes the same system as BankAmeriDeals.
Ultimate Rewards (UR) UR points are Chase’s exclusive bank loyalty points. Points earned on one card can be transferred to another Chase card at any time. However, if a card is closed, the points within that card will be automatically forfeited, so it’s advisable to transfer points to another card before closing it. UR points can be used in the following ways:
Redeem points for statement credit at a value of 1 cent per point (the simplest method).
Transfer points to higher-tier cards for redemption at supermarkets, restaurants, or airlines (at a value of 1.25 to 1.5 cents per point, depending on card level).
Transfer points to airline or hotel loyalty programs for high-value redemptions.
Chase 5/24 Rule Chase has a policy known as the “5/24 rule,” which means that if you have applied and been approved for five or more credit cards (from any bank) within the past 24 months, Chase will automatically decline your new credit card application.
American Express Global Card Transfer
American Express (Amex) offers international transfer services that waive the requirement for SSN and credit history. If you hold a Taiwanese version of the American Express credit card, you can directly apply for an international transfer. To apply for an international transfer, you need to meet the following requirements:
Any Taiwanese version of an American Express credit card (any card will do).
Three months of Taiwanese American Express credit card statements.
A valid address in the United States (PO Box addresses are not accepted).
Proof of residence, such as bank statements, utility bills, or a lease agreement.
Taiwanese passport.
Previously, the requirement was that the starting year of the credit card had to be earlier than the year of the transfer (e.g., if applying for a transfer in 2021, the starting year of the Taiwanese American Express card had to be 2020). However, please note that this information might be outdated and subject to change.
There are two ways to apply for an international transfer:
Contact Amex customer service via phone and provide your Taiwanese card account and the required information mentioned above. Some customer service representatives might suggest applying through the American Express US website first. If you don’t have an SSN, you can inquire with customer service about how to fill in the SSN section.
Apply online (using a referral link from someone else). When applying online, in the SSN field, select “I don’t have a credit history in the US, but have had a credit card or loan in the UK, India, Mexico, Canada or Australia.” Once selected, the SSN field becomes optional. Proceed with the application, indicate your country of residence as Taiwan, and submit it. After submission, you will receive an email. Retrieve the case number from the email and call customer service for the final approval process.
Frequently Asked Questions
Is it necessary to use someone else’s referral link when applying for a credit card?
Using someone else’s referral link can often provide better sign-up bonuses, and the person providing the link will receive additional rewards. It’s a mutually beneficial arrangement, but it’s not mandatory. You can still apply for a credit card directly on the issuer’s website or at a branch, although you may not be eligible for any extra rewards offered through a referral link.
What should I put as my annual income when applying for a credit card?
Generally, as an international student, you can enter the minimum income amount listed on your I-20 form. However, it is recommended to also include any non-taxable income, such as stipends or other salary earnings, if applicable. If you receive a significant amount of financial support from your parents or have other scholarship income, you can include that as well.
Typically, there are helpful prompts provided alongside the income field on credit card applications. It’s advisable to refer to the specific instructions provided by each bank or credit card issuer. For example, the image below shows an income description from a Chase credit card application, stating that income includes salary earnings, stock income, and other regular payments. Therefore, international students can include parental financial support as part of their income.
Which credit cards for no credit history should I apply for?
When considering the beginner credit cards mentioned earlier, their benefits do not conflict with each other, so it can be advantageous to hold multiple credit cards. Here are the independent features of each credit card:
Bank of America (BoA) Customized Cash Rewards: Special cashback rates of 3% for online shopping and 2% for wholesale purchases. It’s especially useful as it can be used at Costco, making the 2% wholesale category valuable.
Discover it: Offers high cashback rates, with 10% cashback on select categories during the first year and 2% cashback on other categories.
Chase Freedom Rise: Earns 1.5x rewards on all purchases and provides rental car insurance. If you frequently rent cars, this can help you save a significant amount on insurance costs. Collision damage coverage for rentals can cost around $30/day. Refer to the car rental section for more details. Establishing a relationship with Chase early on can also make it easier to apply for their other credit cards in the future.
Deserve Edu: Can be obtained without an SSN and offers rental car insurance and phone protection benefits (requires payment of phone bills, with a maximum reimbursement of $600 per claim).
However, it’s worth noting that there are some drawbacks to applying for multiple credit cards within a short period:
Multiple hard pulls can temporarily lower your credit score. Refer to the credit history section for more details.
There is a risk of being denied credit when applying for multiple cards within a short period.
Holding multiple credit cards can impact other credit card applications within a certain time frame, such as Chase’s 5/24 rule.
Summary:
For individuals without an SSN, it is recommended to consider applying for the BoA Cash Rewards card.
Individuals with an SSN can apply for Discover it and choose between Chase Freedom Rise and BoA Cash Rewards.
Individuals with an SSN who rent cars frequently can consider Deserve Edu (no SSN required) or apply for Chase Freedom Rise. Alternatively, they can apply for any of the beginner credit cards and then, after three months, apply for an Amex credit card to obtain a good credit limit. Refer to the popular credit cards section for more details.
Should I apply for secured credit cards?
In the past, secured credit cards were often criticized for their limited benefits. Generally, it is recommended to prioritize applying for regular credit cards (unsecured credit cards) as they do not require a security deposit, and you have more flexibility with your funds. The credit card version of Bank of America’s BoA123, which has been popular for individuals without an SSN and credit history, is a good option.
Will no-annual-fee cards be closed?
If you don’t use a no-annual-fee credit card for an entire year, the bank may proactively close the card. To avoid closure, it is recommended to use the card occasionally throughout the year.
How should I handle these no-annual-fee cards in the future?
Keep the no-annual-fee cards active by using them at least once or multiple times a year. One of the factors that affect your credit score is the length of credit card history, including the length of your oldest account and average account age. The longer the history, the higher the score. After a card is closed, its age is fixed. Additionally, keeping these beginner cards with their credit limits can help maintain a low credit utilization ratio. Refer to the credit history section for more details.
What is the ideal number of credit cards to have?
If you can manage them effectively, having multiple credit cards can be beneficial. The number of accounts is one factor that affects your credit score, and having more accounts generally leads to a higher score. However, if you plan to apply for Chase credit cards, be aware of the 5/24 rule, which considers the number of credit cards you’ve opened in the past 24 months.
What should I do if I have a purchase that exceeds my credit limit?
If you have a purchase that exceeds your credit limit, you can consider the following options:
Use a debit card instead of a credit card for the transaction.
Ask someone else to make the purchase on their credit card and reimburse them.
Make the purchase in installments or consider buying first-hand or second-hand gift cards as a payment method. This way, you can also earn rewards from credit card spending and shopping portals. However, be mindful of the terms and limitations associated with gift card usage. Refer to the gift card section for more details.
How can I get a higher credit limit?
There are two main methods to increase your credit limit:
Passive credit limit increase: After a certain period (usually around six months), the bank may proactively adjust your credit limit based on your creditworthiness and spending patterns.
Active credit limit increase: Contact the bank and request a credit limit increase. However, be aware that the bank may pull your credit report (hard pull) after obtaining your consent, which can temporarily impact your credit score and future credit applications.
For individuals with an SSN who are looking for a higher credit limit, considering applying for an Amex credit card after holding a card for three months can potentially provide a good credit limit. Refer to the popular credit cards section for more details.
