Immigrants in the US can navigate financial services to build stability and avoid high costs. This guide explains how to access banking, credit options, and mortgages using alternative documentation, regardless of immigration status.
Access to banking services can promote positive financial behaviour and help avoid the high costs associated with alternative financial options. While opening a bank account might seem simple, non-English speakers or newcomers to the US may face significant barriers.
Empowering new Americans through financial services
Financial institutions play a pivotal role in helping the 44.9 million immigrants in the US, including 10.3 million without authorisation, to establish financial stability. Many can use an Individual Taxpayer Identification Number (ITIN) to open bank accounts. Apps like MAJORITY offer tailored financial services, making it crucial for immigrants to understand their banking rights to avoid penalties.
Essential documents for banking
To open a bank account and access other financial services, immigrants must provide necessary documentation and identification. While some financial services might require less documentation, they still facilitate bill payments, credit establishment, check deposits, and money transfers. Knowledge of banking rights is essential for effectively using available financial products.
Bank accounts regardless of immigration status
A common question among immigrants is the possibility of opening a bank account without a Social Security number. The answer is affirmative, provided one can furnish alternative documentation such as name, date of birth, an address or other forms of identification
Credit options tailored for immigrants
Access to credit through cards and loans is crucial for meeting financial needs and building a credit history in the US. While immigrants have the right to apply for these financial instruments, there are some limitations. For example, those who enjoy exceptions under Deferred Action for Childhood Arrivals (DACA) cannot apply for federal student loans but may be eligible for private loans. Non-citizens who meet documentation requirements might access federal student loans. Various fintech companies now offer credit solutions that do not require a Social Security number, using an ITIN instead, which helps in building a credit history.
Navigating home loans as an immigrant
Securing a mortgage is challenging without a US credit history, as lenders evaluate creditworthiness based on work experience, credit history, and income. Starting with a global bank operating in the US or a domestic bank can help build a financial history. An ITIN may also be used for opening bank accounts or applying for mortgages. Researching various mortgage options can determine the most accommodating bank for collaboration.
Relocating to the US opens up many financial opportunities. Establishing a bank account is a crucial step towards creating a stable financial foundation, aiding in securing future loans and credit facilities. For those who find traditional banking unsuitable, alternative financial services offer solutions for managing finances effectively in the US.