About SSNs and Credit History

SSN, short for Social Security Number, is basically your personal credit “ID” in the US, and you can use an SSN to look up your credit history. How important is a personal credit record? For example, when you apply for a mortgage or an auto loan, the interest rate depends to a large extent on your credit history; if you want to apply for some premium credit cards, or “good cards,” having a good credit history is also very helpful.

But do we absolutely need an SSN, this “ID,” to build credit history? The answer is no. After all, an SSN is just a “card” used to look up history based on your personal information (name, date of birth, address history). So how can you build a personal credit history without an SSN?

This article offers a few methods for people who may not be able to get an SSN in the short term but still want to build credit history. But if you can work on campus or are about to start a summer internship/job and can get an SSN soon, the best thing to do is definitely to wait until you have an SSN and then apply for a credit card like Discover it, which students with no credit history and on-campus jobs (TA, RA) can often get quite easily. Once you've built up some credit history, you can apply for good cards such as AMEX Blue Cash EveryDay.

Bank Secured Cards That Don't Require an SSN

Go to a branch of a major bank and apply for a secured card; some secured cards don't require an SSN during the application process, such as those from BofA and Citi.

A secured card, like a credit card, reports both payments and delinquencies to the three major credit bureaus. Therefore, payments on a secured card will also affect your credit score: paying on time can raise it, while failing to pay can lower it. Prepaid cards are not reported to the credit bureaus, because you are spending your own money rather than borrowing to spend. As a result, secured cards are often used by people with bad credit or no credit history to gradually build or rebuild credit. Note that these cards are not true credit cards; you must deposit money first and then spend it. Their purpose is to help you build credit. In addition, after 1-2 years, this card can usually be converted into a regular credit card.

Advantages: It's your own “credit card”; builds credit history.

Disadvantages: Requires a deposit; some have annual fees; almost no cash back; very low limits.

Student Credit Cards That Don't Require an SSN

Go to a branch of a major bank and ask a representative whether you can get a student credit card. Usually these student cards can be opened without an SSN. Of course, it is generally more convenient if you already have a checking account with that bank. Usually, the representative will need to photocopy your passport, visa, and a series of other documents before processing the application. These cards are ordinary credit cards and can help build credit, but the rewards, such as cash back, are usually quite low.

Using BofA Cash Rewards as an example, if you don't have an SSN, you can open a checking account at BofA and apply on the spot for the BofA Cash Rewards Student version. If you have a larger deposit or a good relationship with the banker, some bankers can issue this card directly.

Advantages: It's your own credit card; builds credit history; no annual fee.

Disadvantages: Low cash back; low limit.

Adding Yourself as an Authorized User on a Family Member or Friend's Existing Card

If a family member or friend already has a credit card, becoming an authorized user on their card is also a good option. After you're added, the credit bureaus will link your name, date of birth, and address and create a credit file for you, so you can build credit history. One prerequisite is that they need to make payments on time and have a decent credit score; otherwise, it can negatively affect your credit.

Advantages: You can build credit history quickly, almost as if someone has “recommended” you (so the credit history of the primary cardholder is clearly very important).

Disadvantages: You are asking someone else for help; before joining, you need to make sure the other person's credit history is solid; any points or rewards earned on the card go to the primary cardholder.

Apply for an ITIN to Replace an SSN

An Individual Taxpayer Identification Number (ITIN) can also be used to apply for credit cards, to some extent replacing an SSN. However, the card issuer decides which ITIN applications it accepts. I tested several banks to see whether the application pages explicitly say that ITIN can be used, and I also added the application results reported by others. But because there are both old and new data points in this area, please use this only as a reference; in practice, your own situation is what ultimately matters.

Use Your Own Name to Pay Rent and Utility Bills on Time

Generally, paying utility bills for the apartment/house you live in requires opening an account, for example with EverSource. At that point, it counts as a new account on your credit record; every on-time payment helps you build credit.

Then, some of my friends said that signing a lease with a regular property management company and paying rent on time will also show up on your credit report. Note that transfers to a private landlord do not count.

Advantages: You have to pay rent and utility bills anyway if you live somewhere.

Disadvantages: When you move, remember to cancel the utility bills for your old address.

Financing When You Buy Things

When buying a phone, especially an iPhone, you can try Apple's own financing service or the financing service offered by carriers such as Verizon.

Advantages: Allows installment payments, reducing current pressure.

Disadvantages: Each installment includes extra interest.

Have an AMEX International Card Before Coming to the US

Applicants with credit histories in Australia, Canada, India, Mexico, and the UK can now apply online for a US credit card directly through an official American Express public or referral link. In other words, a third party provides an international credit report to determine whether you can be approved for a US credit card. Aside from that, everything else you fill out is the same. The current partner providing the report is Nova Credit. I hope AMEX keeps expanding its international credit-card application service. More details can be found here:

Advantages: You can directly carry over your credit history from your home country and apply for an AMEX credit card right away.

Disadvantages: Only available to applicants from a limited number of countries.

Final Thoughts

As for whether you need an SSN, of course it's best to get one if you can. But during the recent pandemic, SSA offices also require mailed-in documents, so processing time is not guaranteed. If you can't get an SSN, then the best approach is to use the method above that suits you best and start building credit history first.