ITIN and credit cards: what the number does for your card and your credit

Apply for a US credit card without a Social Security Number and you quickly hit a field you can't fill in. For many Europeans, the ITIN is the answer. It's a tax number, not an ID and not a ticket in, but it is one of the most important building blocks for your account, your card and your credit history. Here you'll learn what it does, where its limits are and how to get one.

1What the ITIN is, and what it isn't

ITIN stands for Individual Taxpayer Identification Number. The IRS issues this nine-digit number to people who need a US tax number for federal tax purposes but can't get a Social Security Number. Foreign nationals can apply, whether or not they are US tax residents, as can their spouses and dependents, regardless of immigration status, as long as there is a tax purpose. Foreign nationals with work authorization don't need an ITIN, because they are entitled to an SSN; the same goes for green card holders.

Just as important is what the ITIN is not. The IRS spells it out itself: an ITIN does not entitle you to Social Security benefits, it does not grant or change immigration status, it does not authorize you to work in the US, and it is not valid as ID outside the federal tax system. Anyone who tells you an ITIN means you've made it in America is exaggerating.

So why does it matter so much for banking, cards and credit? Because the American financial system asks for a tax number at every turn, and the ITIN is the only personal tax number you can get without work authorization. It fills the field that would otherwise stay empty. The table shows at a glance what the number does.

2The ITIN when you open an account

Every US bank must collect an identification number before opening an account. For foreign nationals, the federal rule 31 CFR 1020.220 allows several options: a US tax number, a passport number with the issuing country, an alien identification card number, or the number of another government-issued photo ID. Legally, then, you don't need an ITIN to open an account; your passport is enough.

In practice it looks different, because beyond the minimum the bank decides based on its own risk assessment. A tax number shows the bank that you're on record in the US tax system. The rule also has an exception for people who have applied for a tax number but not yet received it: a bank may open the account if its program allows for this, but it must verify that the application has been filed and request the number within a reasonable period.

What this means for you: with an ITIN, more doors are open to you than without one, and a pending application can already help. But an ITIN is no guarantee of an account. To see what other documents banks ask for, read our guide to the documents for opening an account.

3The ITIN on your card application

With credit cards, the tax number matters even more. Most major issuers ask for a Social Security Number on the application. Some accept an ITIN instead, as Experian explains on its website. That makes the application possible, but not automatically successful: you still have to meet the issuer's other requirements, and many cards require a minimum score you won't have at the start. That's why the best cards to begin with are those designed for people with no credit history, above all the secured card.

Two federal rules frame every decision. Under Regulation Z, an issuer must check before issuing a card whether you can cover the minimum payments from your income or assets. Under Regulation B, it may consider your immigration status, but not your national origin. An ITIN changes nothing about either rule. It simply makes sure your application can be processed at all.

The issuer decides on every application. What you can do is submit a complete one, with a real US address, proof of income and an account at a US bank. For other routes open to you without an SSN, read US credit card without an SSN or with an ITIN.

4The ITIN in your credit file

A common worry: if the credit bureaus work with the SSN, will an account opened with an ITIN even show up in my file? Experian answers this on its own website. The bureau matches reports not just by SSN but by all the identifying details a lender submits, including name, date of birth and address. An account you opened without an SSN should therefore appear in your file, as long as the lender reports to Experian.

It's still not entirely seamless. Experian also notes that an ITIN in a credit file would be recognized as an invalid SSN, precisely because it isn't one. Without an SSN, you therefore request your own report in writing, with a copy of a government ID and proof of address such as a utility bill or bank statement. Check your report as soon as your first account has been reported, and get any errors corrected early.

Your score is built by the same rules as anyone else's. For a FICO score, your file needs at least one account that has been open for six months or more, and one that has been reported within the last six months.

5Keeping your ITIN active

The ITIN has a feature many holders only notice when it's too late: it expires. If it doesn't appear on a US federal tax return for three consecutive tax years, it expires on December 31 after the third year without use. The rule applies to every ITIN, no matter when it was issued.

For banking and cards, that's risky. The accounts and credit history you've built with your ITIN hang on a number that is no longer valid for tax purposes. If you use your ITIN as a building block for your account and credit, make sure it appears on a tax return regularly. That's why we prepare your US tax return every year, so your ITIN stays active.

An expired ITIN can be renewed, but that takes time, and you won't have it exactly when an application is due. So budget for the return as a fixed cost of your second financial identity.

6How to get your ITIN

The usual route to an ITIN is your first US tax return. If you start today, that often means waiting until next year. For your account, card and credit, that's a long pause, because your credit history can only begin once the building blocks are in place.

ITIN Express is faster. Together with the attorneys on the firm's team, we developed a special procedure that lets us apply for your ITIN without a prior tax return. We'll walk you through exactly how it works personally once you've placed your order.

Express doesn't mean the IRS works faster. The IRS quotes seven weeks to notify you about your application, and nine to eleven weeks during tax season, from January 15 to April 30, or if the application comes from abroad. We have no influence over this processing time, and the IRS alone decides whether to issue the number. If you can wait, we'll apply for your ITIN together with your US tax return.

7From ITIN to Social Security Number

If you later move to the US on a visa that authorizes you to work, you'll get a Social Security Number. You're not meant to hold an ITIN and an SSN at the same time. Once you have your SSN, you use only that for taxes and notify the IRS, by letter or at an IRS office. The IRS then merges your tax records under the SSN and retires the ITIN.

Give the new number to your banks and card issuers too, so your accounts carry on under the right number. The on-time payments you made during your ITIN years are part of your history. For what else comes up after the move, read Your account and credit after the move.

8Four myths about the ITIN

One: with an ITIN I can work in the US. Not true. The IRS states explicitly that the ITIN does not grant work authorization and does not create or change immigration status. If you want to work in the US, you need a visa or status that allows it, and you'll then get a Social Security Number.

Two: without an ITIN I can't get an account. Not quite true either. The federal rule for opening accounts allows foreign nationals to use their passport number with the issuing country as an identification number. Whether a bank opens an account for you without a tax number is its own decision, but it isn't prohibited.

Three: with an ITIN I get a credit score right away. The number itself puts nothing in your file. Only accounts reported to the credit bureaus fill it, and a FICO score exists at the earliest once an account has been open for six months.

Fourth, and this is the most dangerous one: there is a shortcut called the Credit Privacy Number. Vendors sell nine-digit numbers formatted like an SSN, pitched as a substitute for the SSN or as a route to a fresh credit history. Experian warns against them: no agency issues these numbers, no agency recognizes them, they are often stolen SSNs, and anyone who uses one on a credit application risks criminal prosecution for identity theft or false statements. The only personal tax number available to you without an SSN is the ITIN issued by the IRS.

9How the building blocks fit together

The ITIN alone won't get you an account or a card. It is one building block of four. The second is a real US residential address where mail is delivered. The third is an account with a US bank, which at a large branch bank usually means an in-person appointment. The fourth is your first card that reports to all three nationwide credit bureaus.

This is the order in which you build your second financial identity, and because the ITIN takes the longest, it comes first. For an overview of every step, from the account to your company's business credit, see our guide US bank account and US credit.

In short

• The ITIN is the IRS personal tax number for people who cannot get an SSN. It is used for federal tax purposes only and is not an ID.
• When you open an account, a bank may accept a tax number such as the ITIN, or a passport number with the issuing country, as a foreigner's identification number.
• Some card issuers accept an ITIN instead of an SSN; the issuer decides on every application and must also verify your income.
• Accounts you open with an ITIN can appear in your credit file, because the bureaus match records using all identifying details.
• If your ITIN doesn't appear on a federal tax return for three consecutive tax years, it expires.

How we help you

• ITIN ExpressYour ITIN through our special procedure, no tax return needed.
• US Bank Account OpeningYour own access to the American financial system, even without an SSN.
• Credit BuilderCredit for your company and for you, built step by step.
• Your US Tax ReturnForm 1040 or 1040-NR, handled in English.