credit with tax id number

How To Establish Credit With ITIN Number

We are not the American Citizens but can we get a credit card?

My spouse is from abroad, how can she maintain her credit score?

I don’t have a social security number, can I still apply?

I need to maintain my credit score, what should I do?

How to establish credit with ITIN Number?

These are the questions that most people are found asking when they are struggling to establish their credit reports but with the absence of social security number and not being eligible for it, they remain stuck in a strange situation. The solution to their problem however is simple enough. If they are ineligible for the social security number (SSN) for whatever reasons, they can instantly turn to their Individual Taxpayer Identification Number (ITIN) for their credit. But before we describe ways to guide you how to establish credit with ITIN Number, we’ll need to understand what ITIN really is and how we can apply for it with proper and legal course of action. Forgoing the procedure of applying for the ITIN number in addition to not having a social security number is a mistake. Today most products and service can only be bought through plastic money i.e. credit cards. They are even more necessary when the payment of a large expense is in question. One can also not built their credit score or earn any reward on their expenses until they have a credit card and this brings us back to attaining an ITIN number. Once we know how to do that, we can discover ways of establishing our credit.

If you need help getting an ITIN number, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

What is an ITIN number anyway?

Internal revenue Service is the sole authority in the USA for maintaining, implementing and collecting taxes. Basically IRS is related to all things tax. Now if a person wishes to maintain their credit report and scores in the USA but they are non-resident aliens and are not eligible for social security numbers, they have no choice but to turn to ITIN for help. Individual tax identification number or ITIN for short is a nine-digit number assigned to individuals who need to pay their taxes. Instead of names, IRS refers to ITIN number for identification proposes because of a large database under their system and to keep a lid on tax evasion by regulating systemized functionality through Individual tax identification number . This ITIN numbers are then used to track the taxation history of an individual and allow them to pay the taxes without much hassle.

The requirement of an ITIN numbers extends to foreign resident and non-residents individuals in the USA. A foreign investor cannot even make investments unless they have an ITIN number. Fortunately it is easy enough to apply for ITIN by just filing out a W-7 form that is available on the official website of IRS. After the form has been filled with correct and accurate information, it has to be submitted back to the IRS online or in any U.S counselor offices. The ease of application and hassle-free process makes attaining an ITIN easier.

How to apply for an ITIN number?

Obtaining the Individual Tax Identification Number:

The process of ITIN application is easy enough. You just have to visit the Internal Revenue official web page and get access to the application. Once filled with valid information, it can either be mailed to the IRS, or can be given to an acceptance agent who has been approved by the Internal Revenue Department or as a third option, it can be brought directly to the Internal Revenue Service’s taxpayer assistance center that is located in various cities all over the USA. Along with the application, the applicant will also need to attach their proof of identity that will validate their foreign status. It can include the passport or the visa. Within six weeks of application, the applicant will receive a letter from IRS with their assigned ITIN number.

Once you have applied for the ITIN and received your assigned number, it is pertinent to remember that it would not change your status of an immigrant or a non-resident alien. However it will deem you eligible for the application of credit cards and for maintaining the credit scores and reports. It should also be noted that knowing how to establish credit with ITIN Number, and using the would not allow you to apply for credit card at every bank and financial institution. There are many institutions in the USA who accept the ITIN number for credit card application but there are also few that don’t. Here is a list for guidance:

Card Issuers that accepts application of credits cards with the individual taxpayer identity number:

Following are the banks and institutions that a foreign non-resident alien person can go to for attaining their credit cards:

  1. American Express:

American Express allows the applicants with an ITIN to be issued a credit card. In rare cases, this institution might allow their American Express card members from other countries to apply for the credit card using their strong credit score and impressive credit history. Furthermore, American Express even provides the facility to move the credit card from another country to this country as long as it belongs to their institution. However, there’s still a high possibility that an ITIN would be required for all options.

  1. Bank of America

Another institute that allows the non-residents and foreign investors to apply for credit cards with an individual taxpayer identity number is the Bank of America. In some case, Bank of America also accepts juts the passport numbers to provide with a credit card.

  1. Capital One

They accept ITIN to provide the applicants with credit card.

  1. Chase

Even though Chase provides the applicants with a credit card when they produce an ITIN, the institution is still very strict with their rules and only allows limited and selected numbers of applications.

  1. Citibank

Citibank operates on a global level therefore in addition to providing credit cards with an ITIN; they also allow their account and cardholders from other countries to continue their relationship in any other country as well. The same offer is extended to the citizens of America who wish to travel to other parts of the world.

On the contrary, there are several institutions in the USA that do not accept the ITIN for any purpose, not even for cards nor for scores. They only provide services to those with a social security number. Some of these institutions include:

  • Wells Fargo
  • Barclay
  • US Bank
  • Discover

Applying for the credit card

There are situations in which an applicant is rejected for a credit card despite the fact that they have an ITIN and they approached an institution that allows credit card with an individual taxpayer identification number. The reasons could be many though the most prevailing one is an absence of credit history. And because the foreign credit score and history cannot be transferred to the USA, the applicant will have to start from scratch and begin working on their credit score again. This can be down by applying for a secure credit card, which asks the applicant to deposit an amount of their own for security purposes.

After obtaining the card, make sure to pay pay-off your debts in time as this will be counted in your credit score and shine a positive light on your credit history and from here, obtaining credit will only become easier. Business persons can also use their status to apply for Business cards that comes with number of rewards and bonuses.

How to establish a Credit with ITIN number?

Establishing a credit with ITIN number will begin with the initial process of applying for the individual taxpayer identification number. Establishing a credit goes far beyond just applying for the credit card. For a person who is need of regular credits for the business or other reasons will need to take care of several things to make sure the line of credit remains open for them. It also involves maintaining a positive credit score and keeping credit reports. And during the whole process, ITIN keep things easier.

Now that we know all about obtaining ITIN form IRS and applying for credit card, it’s time we move on to the other essential of credit that will answer the question of how to establish credit with ITIN Number with much more clarity.

As we mentioned earlier that establishing a credit requires keeping a good credit score. For those who don’t know what credit score is and why it is so important to keep an open line of credit, here it goes:

Understanding Credit Scores and credit reports:

Before talking about credit scores, we’ll need to understand the credit report. As soon as we attain our ITIN we apply for the credit card and account opening. This account then allows us to conduct cash withdrawals, deposits, borrow cash and grant loans. And as we are doing all this, we are making credit history. Every single action that we take related to our credit account is being noted down and eventually our credit history in print is called the credit report.

Credit Report:

A credit report contains the following information:

  • Credit on hand:

The report will have a detailed list of all the credits that you have at the moment. It will include any sort of loan (car or study), mortgage and the credit card. In addition, it will also list down all the information about the credits you have attained from creditors, the terms at which the credit was provided to the borrower and the history of each payment you made and have yet to make.

  • Identity:

A credit report includes full identification of the borrower in question. It will include the full legal name of the borrower, information related to their employment, their address, ITIN number, date and place of birth.

  • Your Public Records

Any record that may indicate information regarding bankruptcy, lien, judgment by court and other information will be included in the credit report.

  • Inquiries:

A credit report also lists down the names of all those people and companies who have requested a copy of the report.

Credit Scores:

In the simplest of terms, a credit score is a numerical value that informs a creditor about a person’s creditworthiness. When a person approaches a creditor with an ITIN number and a request of credit, the lender will check their credit score. This score will indicate how good a person is at paying-off their credit. This credit score is generated using the social security number or the individual taxpayer identification number. The numerical value starts from 300 to 850 with 300 being the lowest and 850 the highest and most excellent score. These scores make the decision of the lenders easy as they can tell the trustworthiness of the borrower by looking at his credit score.

Importance of credit report and credit score:

When we are trying to learn how to establish credit with ITIN Number, we must also gain knowledge about credits scores and reports. All are interrelated and one cannot be accessed and attained without another. It is pertinent for borrowers to keep an updated credit report as it provides a comprehensive idea about how a person manages his finance and pay-off his responsibilities. It is often demanded by employers, lenders, insurers and other entities who can provide you with great opportunities and solve your problems but only if they are impressed by your credit report, which is not a difficult task at all as long as they are responsible with their credit history and management of finance. Let’s look at some reasons why credit card holds so much importance in the financial niche of every individual and company:

  • Convincing utility companies is as easy as keeping an impressive credit report because they decide whether to provide services or not based on it.
  • Looking for a house and then renting can become lot easier or most difficult based on a credit report. A renter is quick to rent apartments to people with a good credit score and the details mentioned in the credit report. In case the credit report shows an irresponsible person who is careless with their finance or not a credit report at all, the renter will be hard to convince.
  • Getting insured couldn’t become easier with a credit report.
  • The chance of being recruited by a company becomes tenfold more if they get impressed after taking a looks at your credit report, which indicates how organized, earnest and passionate a person is.
  • Most importantly, lenders almost always ask for a credit report before lending their money. A bad score and unimpressive credit report will turn all the odds against and getting hands on credit can become a nightmare. On the contrary, if the credit score is too good the lender might even adjust the rate of interest in your favor.

Some more hacks to get approval for a credit card without an SSN:

In addition to knowing how to establish credit with ITIN number, the following hacks will also tip the scales in your favor and attaining a credit card won’t remain a problem anymore. Here’s what we can do:

  • In addition to credit scores and credit reports, personal relations also speak volume about a person’s trustworthiness. Most people who are new to credit establishing, are not able to maintain good scores. Not because they are bad with finance, but because they are bad at keeping it updated when in real they are responsible with their payments and rarely ever miss any. Forming a closer relationship with a creditor and card issuers before application will also incline them to trust you.
  • If a situation is bad, it will remain that way until you step out of the rut. To maintain credit history, a credit card and credit is needed but to attain these two, a credit history is required. It’s like chasing your own tail. Instead, a person can apply for a secured credit card in which an individual will have to deposit some amount for security purposes and then the credit card is all theirs. No history needed.
  • Try to apply for the credit on phone or in person instead of online. This will help solve any issue much faster and create less hassle with the staff on hand to help you.
  • If the bank or card issuer allows it, make sure you transfer the credit card from your home country. Leveraging the same relationship will help in attaining the access easily.

Improving the Credit Score:

Just knowing how to establish credit with ITIN Number is not enough. Once the credit is attained with an ITIN number, it must also be maintained. Despite some obvious ways, there are several others that help us maintain a good credit score.

  • Remove the word delay from your dictionary because delayed payments are not taken well by the credit score. Late payments can be avoided by setting the payments date right after you receive your income.
  • Credits cards of stores are easier to pay and get counted in the credit score. While they do not increase the score with many points, it does helps to keep it steady.
  • More than one credit card is a good idea and even more so when their limit remains between 5% and 9%.

Now that we know how to establish credit with ITIN Number and to maintain a good credit score, achieving financial targets and fulfilling business goals in the USA is not going to be a problem anymore.

If you need help getting an ITIN number, please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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