Rewards Credit Card Without Social Security Number?

Can you get a rewards credit card without a social security number? A TravelSort reader writes “Hi, I am Australian and was wondering if there is any way to apply for a U.S. credit card? I do not have a U.S. security number but I have a U.S. address.”

While the reader didn't specify, I assume s/he is hoping to be approved for U.S. issued credit cads to earn frequent flyer miles and points from the sign up bonuses and spend. Unfortunately, for non-U.S. residents without a social security number, this is challenging if not impossible unless you have a more direct connection to the U.S. such as paying U.S. taxes or are already an authorized user on a U.S. resident's credit card. Here's why:

Most U.S. Credit Card Issuers Require a Social Security Number for Credit Card Applications

Some folks assume that U.S. banks such as Chase and AMEX require a social security number when applying for a new credit card due to the Patriot Act, which requires banks to accurately identify foreign nationals applying for accounts and credit. Actually, the relevant part of the act reads (bolding is mine):

“…requiring foreign nationals to apply for and obtain, before opening an account with a domestic financial institution, an identification number which would function similarly to a Social Security number or tax identification number”

So an actual social security number is not required, but an identification number that functions similarly is required. An Individual Taxpayer Identification Number (ITIN) would seem to fit, but see below–it's no longer so easy to get one.

The real reason most banks require you to provide a social security number is to do a credit check–it's used by the credit reporting agencies, Experian, Equifax and Transunion, to identify your credit history, since many people have the same or similar names and the SSN functions as a unique identifier.

Can You Get Approved for a U.S. Credit Card By Providing an ITIN Instead of a Social Security Number?

You can in fact apply for and potentially get approved for a Bank of America credit card using an ITIN instead of a social security number. It may even be possible to apply in a branch using a passport number or foreign driver's license number, in place of the ITIN, so that could be worth a try when next in the U.S..

At least one person on Flyertalk, mintcilantro, has reported that his wife, after getting approved for a Bank of America credit card using her ITIN and household income, subsequently received a pre-approved offer for an AMEX Gold card, and she was approved using her ITIN:

“My wife doesn't have SSN and she recently got a BoA card with ITIN using household income. Last week, she got a pre-approved offer in the mail for Amex Gold 25k points. I thought I'd try and I was surprised to see an approval using ITIN. We don't even have Amex CCs, only prepaid cards (bluebird and target). I don't know how she got targeted.”

And Flyertalk user LongviewTX reports that his father, a non-resident but long-time authorized user of LongviewTX's Citi card, was targeted for a Citi card that the father was able to successfully apply for, using his ITIN.

How to Get an ITIN?

It used to be relatively easy to get an ITIN, but it's gotten harder to get one unless/until you file a U.S. tax return. There are 5 main exceptions, which mainly have to do with the ability to apply for an ITIN immediately, rather than waiting until filing your tax return:

1. ITIN Exception 1: Passive Income

If you have annuity, dividend, interest, partnership, pension, royalty or other passive income you may qualify for this exemption. Banks, investment firms and insurance companies may require you to get an ITIN so that they can file the requisite information reports. 

So, if for example you have an interest generating bank account that is subject to IRS information reporting can apply for an ITIN right away instead of waiting until the usual time to file a US federal tax return.

2. ITIN Exception 2: Other Income

If you receive any kind of compensation, scholarship or grant income, you may be able to claim this exemption. Note that in most cases when applying for an ITIN, you'll also need to submit a letter from the Social Security Administration (SSA) denying you from applying for a social security number.

3. ITIN Exception 3: Mortgage Interest

4. ITIN Exception 4: Foreign Investment in US Real Estate 

5. ITIN Exception 5: Treasury Decision 9363

The upshot: if you already have an ITIN–great! If not, you're unlikely to get one unless you actually are subject to withholding tax or need to file a U.S. tax return.

Also note that normally you cannot build a credit history under an ITIN, as the credit bureaus only build credit reports around social security numbers.

Any Other Ways to Build U.S. Credit and Apply for U.S. Credit Cards?

For those who are in the U.S., have a job and ITIN but don't have a social security number, it's possible to work one's way up to rewards credit cards:

• Start with a secured credit card, such as the Bank of America Secured Credit Card, or even one of the U.S. Bank secured credit cards, which also offer Avianca LifeMiles (Star Alliance) or LAN miles (Oneworld)
If married to a U.S. citizen with a good credit history, be added as an authorized user or even open a joint account so that you can build credit history. See 

How Does Adding an Authorized User Affect My Credit Score and That of the Authorized User

• After about a year, apply for other non-secured credit cards, such as student cards, Citi Dividend, AMEX Blue, etc.
• Eventually, having established a good credit history, apply for the more lucrative travel rewards credit cards