Credit cards are probably one of the things you'll hear talked about or referenced in America a whole lot in the financial scene. Some places might even use credit cards as a group name for all other sorts of card payments. I used to get tripped up on this, because coming from Nigeria, I was only familiar with debit cards. So, when someone explained the concept of credit cards to me, where companies give you a card with the money you don't own loaded on it and encourage you to use it to your heart's desire, I definitely felt smarter than a 5th grader because even I (with zero financial expertise) knew that that sounded like a terrible idea. I mean why would anyone give you $1000 or more to just spend as you wish and trust that you would pay back or better yet why would anyone take that offer, it sounded too good to be true.
Sooooo, fast forward to years later, after I got to understand more on how credit cards actually worked, you know, they aren't so bad. The tricky part is using them wisely, so should international students bother with this?!
To start with, you first have to decide if you plan on staying in the US long term (like after your studies) or leaving right after you get that degree. If you can't wait to get home after your graduation, then you can always check out the credit card options of your home country before coming if you really want to have a credit card. On the other hand, if you are planning on staying for the long haul then getting a US credit card might be right for you. I say this because staying here might require you to get a house, which will require loans, except you just have about $300,000 just laying around. It can also affect other things ranging from getting a car loan to even a decent apartment. A credit card can affect these things by making it easier because when you get a credit card, you also get a credit score, which is more or less is a measure of your financial health in the US. It determines if you can easily get that house loan (mortgage), get that car loan, or if apartment managements will want to rent out to you.
In other words, getting a credit card and using it wisely (by not ever ever like seriously, ever spending money you do not have any way of paying back) is a good way to set yourself up for an easier transition into living here. Plus, credit cards are notorious for cashback deals, which is them paying you back in percentage for what you spend. However, to actually get a credit card for those that have decided they are staying here for the long run, companies will require something called Social Security Number (SSN). This SSN is highly coveted in the US, because it opens a whole lot of doors especially when it comes to working here. Unfortunately, international students are not given SSNs when they get here.
There are 2 ways around this problem. You can either get an on-campus job, an internship or a full-time job then your International advisor at your school could give you an authorization letter to take to the Social Security Administration (SSA). The SSA can then assign you an SSN. The other option is to use the limited option of credit card companies that do offer credit cards to students without an SSN, an example I came across is The Deserve® Edu Mastercard for Students.
One last hurdle for international students to jump through is the issue of no credit history. When you do get your SSN and you are ready to apply for your precious credit card, you might get denied simply because financial companies might not trust you just yet to give you their money. You're the new kid on the block and not everyone wants to play, they don't see your greatness just yet. Don't fret, I'll offer a few ways to get around this. You could get yourself a nice little Secured Credit card. The difference with this credit card is that you do have to put a deposit in first before you can get it. I came across one, The Discover it Secured card. With that option, you can eventually build your credit score up eventually and applying for a regular credit card down the line. If you don't like that, you can decide to become an authorized user on an already existing credit card. This is a great option, if you have a family member or someone that really trusts you, they can add you to their credit card account and your credit score can grow and improve as long as the primary cardholder of the account practices good financial habits, so it will kinda be out of your hands here.
So, fam I rest my case, the ball is in your court. I hope I have armed you with enough information to make your choice.
Alright fam, that's all I have for now. Don't be a stranger, comment below or send me a message using the contact form (https://helloyoungerme.wixsite.com/helloyoungerme/contact) in the Contact section to ask questions or suggest what articles you would like to see. My YouTube channel is coming soon too! See y'all over there.
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