There are several challenges immigrants face when accessing adequate financial services in the US. Due to the lack of a Social Security Number, immigrants cannot take advantage of many financial opportunities. Are there any options available to them when they need credit?
Do they have access to credit in the United States? The answer is yes; they can use personal loans with ITIN numbers.
ITINs (Individual Taxpayer Identification Numbers) are accepted by many banks to open bank accounts and get loans for personal and business purposes. Immigrants without SSNs can use ITINs to run their businesses, open checking accounts, and prove how long they’ve lived in the country.
Best Personal Loans with ITIN Number
| Lender | Loan Amount | APR Range | Loan Terms | Eligibility | Pros | Cons |
|---|---|---|---|---|---|---|
| Wells Fargo | $3,000 – $100,000 | 8.49% – 25.14% | 12 – 84 months | Minimum income $25,000, proof of steady employment | Large loan amounts, relationship discounts, convenient branch network | Potential higher rates, strict income requirement |
| SoFi | $5,000 – $100,000 | 8.99% – 23.14% | 24 – 84 months | Minimum income $48,000, US citizenship/permanent residency (exceptions for select employers) | Fast online application, autopay discounts, competitive rates | Higher minimum income requirement, not available to all non-citizens |
| One Percent for America | $500 – $5,000 | 1% | 12 months | Valid government ID, proof of income, bank account information | Affordable for immigration expenses, mission-driven lender | Small loan amounts, short repayment term |
| Mission Asset Fund | Up to USCIS filing fees | 0% | N/A | Valid government ID, proof of income, bank account information | No interest, ideal for specific purpose | Limited scope, income verification required |
| Local Credit Unions | Varies | Varies | Varies | Varies | Potentially lower rates, personalized service | Limited availability, membership requirements |
Also Read: Which Bank is Best for a Personal Loan?
What is an ITIN?
The Internal Revenue Service issues Individual Taxpayer Identification Numbers for tax purposes as part of its tax processing system.
There is no reason to worry even if you don’t have an SSN or an ITIN. However, the ITIN allows you access to personal loans, so it is recommended that you obtain it as soon as possible to get borrower access.
You can get a personal loan if you apply for an ITIN number. The benefits are available to foreign nationals, non-resident aliens, dependents, and spouses of foreign nationals.
The critical thing that immigrants should be prepared for is that they will have to pay federal taxes because this is something that everyone in the US has to do, regardless of their immigration status.
Your financial future will be better in the US if you get access to personal loans with ITIN number because then you can get a bank account without your Social Security Number, build your credit score, pay your taxes, get a driver’s license, and get a business loan.
Also Read: How Many Personal Loans Can You Have at Once?
Lenders Offering ITIN Loans
- Community Banks and Credit Unions: Local institutions are often more flexible with their lending guidelines. Look for those serving immigrant communities or explicitly stating they accept ITINs.
- Online Lenders: Specialized online lenders cater to borrowers without SSNs. Some popular options include:
5 Steps to get personal loans with ITIN number
Following specific steps to get personal loans with ITIN number is essential. Let’s find out how to go about this in 5 easy steps:
1. Find out where you can open an account with an ITIN
As long as you have an ITIN, some non-bank lenders will work with you. Banks and credit unions, however, might require you to open an account with them before you can get a loan. Ensure you understand the requirements and open a personal loan account with an institution offering ITINs.
2. Gather necessary documentation
A lender may require other identification, such as your driver’s license, passport, residency card, or official documentation from another country.
A residency card or visa is often required as well. Additionally, you may need bank statements or tax returns (from the US or another country). Ensure you have a copy of your utility bill, credit card statement, lease contract, or other document that documents your address.
3. Complete the personal loan application
Fill out the loan application once you’ve gathered your documentation. You must ensure you use the correct application if there is a different process to access personal loans with ITIN number. Make sure all the required documentation is submitted with your application.
4. Provide additional information if needed
Some information may need to be provided to the lender, or you may need to get a co-signer. Stay in touch with the lender to address any issues quickly. Keep the process under control and pay attention to any communication from the lender.
5. Sign the agreement and receive your money
You can receive your funds once you are approved for a personal loan. Before applying, set up a bank account since you might be required to receive the money through direct deposit.
Also Read: Are Personal Loans Tax Deductible?
What banks take ITINs for opening business bank accounts?
An ITIN can be used to open a business account at the following banks:
- Alliant Credit Union
- Bank of America
- BMO Harris
- Charles Schwab
- Chase
- Citibank
- HSBC
- PNC
- TD Bank
- US Bank
- Wells Fargo
Factors Lenders Consider Besides SSN
- Credit History: Some lenders allow you to build credit using your ITIN. A positive payment history helps tremendously.
- Income and Employment: A stable income source and proof of employment demonstrate your repayment ability.
- Debt-to-Income Ratio (DTI): Lenders want to ensure you can manage your current debt along with the potential new loan.
- Collateral: Offering collateral (like a car) might improve approval chances and help you secure a lower interest rate.
Personal Loans with ITIN: 3 Reasons to Get One
You can qualify for personal loans with ITIN numbers. Some scenarios where a personal loan could prove helpful are listed below.
Buying a Car
Secured loans are a popular type of loan among traditional lenders. In the US, automobile loans can be classified as secured loans. A collateral is required for the loan in the form of the car financed by the loan. Borrowers who default on their payments can repossess their cars and take them as repayment.
It is also necessary to make a down payment on auto loans. Before a loan can be approved, you must pay a deposit. If you don’t have enough cash to pay for your down payment for an auto loan, you can use a personal loan.
It is also tricky for immigrants without a Social Security Number to apply for a car loan. Personal loans can be used to purchase cars if this applies to you. Obtain a personal loan from a lender willing to assist you and use it to buy your vehicle.
Beem can help you find, compare options, and choose the best personal loan to meet your needs.
Rental Deposit
It is no secret that the American real estate market has an expensive reputation. Depending on where you buy or lease, you may have to pay a different amount. It is not cheap to rent a house in the United States. Consequently, renting is expensive, as well as the rental deposits. A deposit of up to 3 months’ rent (or even more) may be required by your landlord, depending on your rental agreement.
Heavy deposits should not get in your way of getting that deal. Your rental deposit can be covered with a personal loan with an ITIN. You can get a loan for a rental deposit.
Pay to Relocate Family
There is nothing more stressful than moving your family. However, it is sometimes necessary to make a change.
Regardless of the reason for moving, the cost will remain the same. Especially when moving on short notice, moving can be expensive. There’s no time to shop for the cheapest and easiest solutions when you need help quickly.
The cash flow problem does not have to be a concern, and you are not at risk of losing out on a new job opportunity. You must have the funds now, regardless of whether your new job offers a better salary or any help covering the extra moving costs.
If this gap cannot be bridged, what do you do? Ensure you have an ITIN number before taking out a personal loan to cover the relocation costs. Calculate how much you’ll pay the removal company and any transportation costs. You can find a solution through a relocation loan.
can you get a loan with an iTIN number
Yes, you can get a loan with an ITIN number in the US. An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who are not eligible for a Social Security number (SSN).
This includes non-citizens, resident aliens, and dependents of non-citizens.
Conclusion
ITINs can be used as personal loans for those without Social Security numbers. Before applying for personal loans with ITIN numbers, you should research which lenders offer them.
You should also make a list of their requirements. It might take a little longer to get your ITIN, but you can get a personal loan once you get it. Without an SSN, ITIN holders cannot immediately access certain types of credit.
Nevertheless, non-residents with ITINs can gradually build their credit and open more doors to financing their personal and business endeavors.
The ITIN or Individual Tax Identification Number is used instead of an SSN for loans for immigrants or non-residents. You may also be eligible for other credit and benefits in that scenario.
Try Beem for guidance on credit score monitoring, financial planning, or choosing the best personal loan to meet your needs.
FAQ’s
Q. Can You Buy a Home With an ITIN?
A. If you have an ITIN (Individual Taxpayer Identification Number), you can purchase a house in the United States. With your ITIN, you can apply for a home loan and be able to provide evidence that you are up to date on your taxes.
Q. Can I Get a Credit Card With an ITIN?
A. Can you get a credit card without an SSN or fund a secured credit card with a bank account if you don’t have one? The SSN can be substituted with something else. That difficult-to-obtain credit option may be accessed with the ITIN, short for Individual Taxpayer Identification Number.
Q. Credit Cards as an Alternative to ITIN Personal Loans?
A. Easy purchases and simple repayments can be made with a relatively low interest rate credit card. Further, you won’t have to apply for additional funding again.
