Different types of credit cards for international students in USA include Secured Credit Cards, Prepaid Credit Cards, and Student Credit Cards. These cards are available to non-US citizens who become authorised users on the bank account of someone else, have an ITIN (Individual Taxpayer Identification Number), or possess an SSN (Social Security Number). Furthermore, an overseas student can also avail of a credit card if she/they/he has a valid student visa.
All the aforementioned provisions are laid down under the Credit Card Act of 2009. As per this legislation, international students below the age of 21 years cannot be the primary holder of credit cards. Students under 21 years must have an adult co-applicant. Those without a co-signer will have to prove their ability to pay off their debts. To showcase their loan repayment potential, these individuals will have to showcase their earning potential, such as securing an on-campus part-time job.
Furthermore, the Act also states that study in USA students need to furnish certain documents to avail of credit cards. These documents include a student visa, an unexpired passport (any proof of identification), or ITIN. After producing these documents, students must prove their creditworthiness by opening a US bank account, getting a part-time job, or establishing credit.
Types of Credit Cards for International Students in USA
Overseas students can opt for Secured Credit Cards, Student Credit Cards, or Prepaid Credit Cards to pay bills and other purposes. International students can become authorised users of the common credit cards mentioned below.
Student Credit Cards
This is one of the most suited credit cards for international students in USA who have a steady income. By embarking on an employment journey, it is established that the person intends to stay in the nation for a longer time period. These credit cards have low entry barriers. Owing to this, international students with no or limited credit history can qualify for these. These cards are used for daily expenditures like dinners, streaming services, and entertainment.
Secured Credit Cards
Furthermore, these cards require collateral in the form of a security deposit from the cardholder. This deposit serves as the credit limit and reduces the risk for lenders. Over time, a secured card can help build a credit history in the U.S.
Prepaid Credit Cards
On the other hand, a prepaid card doesn’t need a linked bank account. Whereas, students can load funds directly onto the card, similar to a gift card. The spending limit is always equal to the deposited amount. These cards are ideal for international students seeking a short-term option without the need for a U.S. bank account or credit history establishment.
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