How Secured Credit Cards Can Help Immigrants Build Credit in the U.S.

Living in the U.S. as a new immigrant can be a logistical challenge. One important thing on the to-do list is figuring out how to earn, save, and spend money. Even immigrants who arrive with funds in a bank account may find it difficult to rent an apartment or obtain a loan to purchase a car because they don’t have a credit history in the country.

For some immigrants, a secured credit card can help build credit and smooth the path to purchasing. Read on for a closer look at this unique type of credit card and how to build credit as a new immigrant.

What a Secured Credit Card Is and How It Works

A secured credit card is used like a traditional credit card, but it is “secured” by cash you deposit in the bank. The money in the account is collateral for the credit card issuer in the event that you don’t pay your bill. Immigrants often obtain a secured credit card because it’s the first step on the pathway to building a credit history. You don’t need a credit score to get a secured credit card, as you do when applying for a traditional credit card.

Security Deposit and Credit Limit

With a secured credit card, your security deposit is the amount you deposit into your bank account to “secure” what you borrow with the card. If you charge something to the card and don’t pay your bill, the bank can take possession of the portion of your security deposit that is equal to what you owe, plus any penalties. The size of the security deposit will determine the credit limit on the card.

Billing and Payments

It’s best to pay your secured credit card balance off each month if you can do so. Not only does this reflect favorably on your credit profile, but it can save you money on interest. Secured credit cards can have a fairly high annual percentage rate (APR), which is the cost of borrowing including interest and fees. The average APR on a secured credit card in early 2026 is 26.13%, several percentage points higher than the average APR on a rewards card, which is 23.66%.

Reporting to Credit Bureaus

Unlike debit cards, which draw funds directly from a checking account, the card issuer may report your use and payment history on your secured credit card to the credit bureaus that compile credit reports. That’s why using a secured credit card could be a good initial step if you’re looking to build a U.S. credit profile.

Why Immigrants Often Start With Secured Credit Cards

As we’ve seen, having a secured credit card is one of the ways to build a credit history, which is important because it will yield your credit scores — numbers that lenders, landlords, and even some employers use as a gauge of how well you manage your finances. Immigrants often start with a secured credit card because it is generally possible to obtain one even if you have no credit history in the U.S.

Immigrants aren’t the only group that can benefit from a secured credit card. People with a poor credit history might use a secured card as a stepstone to a stronger credit score. College students, who are often starting their journey as credit users, may also find secured credit cards helpful, though they might also use a credit card created specifically for students.

Lack of U.S. Credit History

Lack of a credit history in the U.S. is a primary reason an immigrant might use a secured credit card. Even if you have a strong credit score in your country of origin, it usually won’t carry over to the U.S. A new arrival to the country typically needs up to six months of payment history before one of the main U.S. credit bureaus — Equifax®, Experian®, and TransUnion® — can calculate a U.S. credit score.

Accessible Without SSN

One of the things that make a secured credit card an appealing choice for an immigrant with no credit history is that a Social Security number (SSN) isn’t typically required to obtain this type of account. Many immigrants don’t have an SSN. We’ll get into the application process, and what’s required for a secured credit card, in more detail below.

A Pathway to Building Credit

There are several possible ways to build a U.S. credit profile once you are in the country. In addition to obtaining a secured credit card, you might become an authorized user on someone else’s credit card, such as a spouse’s account.

You might also be able to obtain a credit-builder loan. Offered by smaller banks and credit unions, a credit builder loan is deposited in an account for the borrower, who pays off the loan, with interest, over time. After the money is repaid, the loan, plus interest, is disbursed to the borrower. Making those regular loan payments is a way to build a credit history.

Once you’ve been using a secured credit card — and potentially other methods — to build a credit history, you can begin to monitor your credit score to see how it changes over time. You can check your credit scores via the credit bureaus. Many banks also help account holders check their scores as well. Here’s a look at how the scores from one commonly used credit score company, FICO®, stack up.

How to Build Credit as an Immigrant Using a Secured Credit Card

If you decide to apply for a secure credit card, here’s information on what you’ll need for the application — and how to use the card once you have it.

Apply With an SSN or ITIN

If you have a Social Security number, you can use it to apply for a bank account. But a SSN is not required to open a bank account in the U.S. Instead, you might be asked for an Individual Taxpayer Identification Number (ITIN). This is a tax processing number issued by the Internal Revenue Service (IRS) to ensure that people — including undocumented immigrants — pay taxes even if they do not have a SSN.

Members of the immigrant community who might want to obtain an ITIN include a foreign national legally in the United States who is filing a U.S. tax return; a foreign national student, professor, or researcher who is filing a U.S. tax return but does not qualify to receive an SSN; a dependent or spouse of a U.S. citizen or lawful permanent resident; or a dependent or spouse of a foreign national on a temporary visa.

You will also be asked for identification. This might be a valid passport or your visa (for example, an F-1 or J-1 visa). You’ll need proof of your U.S. address, as well, and an initial deposit on the card.

Can you build credit with an ITIN number? Indeed, you can. Applying for a secured credit card is often the first step.

Use the Card for Small, Regular Purchases

Developing a credit history once you have a secured credit card is fairly simple. The first step is to use the card. Try making modest, routine purchases, such as buying groceries. Don’t spend up to the maximum credit limit if you can avoid it. Using your maximum allotted credit line signals to the credit bureaus that you might be at risk of not paying your bill. Your amount owed and credit utilization (the proportion of your available credit used) contribute significantly to your overall credit score.

Pay Your Balance on Time Every Month

As you use your secured credit card, be diligent about using your credit card responsibly. Pay your bill on time each month, and try to avoid carrying a balance.

Paying off your balance keeps your credit utilization low and helps you avoid interest charges. One way to ensure your bill is paid on time is to set up automatic bill payments.

Build a Credit History Over Time

With careful use, a secured credit card may form the foundation for your credit history in the U.S. so that you can build credit over time. “Your credit score is based on factors such as how often you pay your bills on time, how many loans and credit cards you have, what your debt is relative to your credit limits, and the average age of your accounts. It also considers negative financial events, such as judgments, collections, and bankruptcies,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi.

As time passes, you may add other forms of credit to the mix when you are thinking about how to build credit as an immigrant. A car loan, unsecured credit card (such as a rewards card or cash-back card), and eventually a mortgage might one day be part of your credit mix. Having diverse forms of credit and making on-time payments are both factors in your credit score. The length of time you have on your accounts comprises 15% of your FICO credit score, for example, while the diversity of your credit mix accounts for 10%.

Common Misconceptions

It can sometimes feel lonely to find your way in a new country. But if you are an immigrant in the U.S., you are hardly alone. In a country of more than 340 million people, 15.4% of all U.S. residents were immigrants as of June 2025, according to a Pew Research Center analysis of Census Bureau data. That’s roughly 51.9 million people, at all stages of their immigrant — and financial — journey. Some of them may find using secured credit cards to be a helpful first step.

There are some common misconceptions among new users of secured credit cards, so it’s worth understanding these before you apply for an account. Some people mistake the security deposit they make when starting a secured credit account for a fee. The security deposit is simply that — a deposit. You’ll get the money back when you close the account, provided you pay your bills on time and are in good standing.

And speaking of paying bills: Another common misconception about secured credit cards is that these cards work like a debit card. They don’t. Money is not subtracted from your checking account when you use a secured credit card. You will receive a monthly statement and you will need to pay the bill at that point. You will decide where the funds are drawn from to make that payment.

Finally, bear in mind this common mistaken belief about the ITIN you may need to obtain your secured credit card. The ITIN does not provide you with any legal status in the U.S. It’s not a work authorization. It is an official number from the IRS, but the purpose of the ITIN is to enable you to pay taxes. If you have an ITIN and don’t file taxes for three years, the number will be invalidated.

The Takeaway

For those exploring how to build credit as a new immigrant to the U.S., a secured credit card can be one good way to begin to develop a credit history. Getting a secured credit card requires making a deposit into a bank account that will serve as the security for the credit card. As long as you make your payments promptly and keep your balance low, you can make purchases, develop a healthy financial profile, and eventually expand your credit options.

As you consider a secured credit card, it’s a good idea to explore different card issuers. Ask about interest rates, any fees, and what documents are required to open an account.

FAQ

Can immigrants build credit without an SSN?

It is possible for an immigrant to build a credit history without a Social Security number, but doing so might involve applying to the Internal Revenue Service (IRS) for an ITIN, an Individual Taxpayer Identification Number. You can use this number to obtain a secured credit card, which is a first step on the path to a credit history and credit scores for many immigrants.

What’s the fastest way to build credit as an immigrant?

One way to build a credit history as an immigrant is to obtain a secured credit card, which is a credit card that is secured by a refundable security deposit. You won’t need a Social Security number or a credit score to obtain this type of card, and making regular small purchases and consistent payments on the account will show credit bureaus that you can handle finances responsibly.

Do secured credit cards work if you have no credit history at all?

Secured credit cards are a good solution for anyone who has no credit history at all. Debit cards don’t typically report users’ payment history to the credit bureaus, but issuers of secured credit cards usually do report, and this is the first step in building a credit history and eventually having a credit score.

How long does it take to build credit as an immigrant?

It can take up to six months of consistent use of a secured credit card to begin to build a U.S. credit history. Some newer credit scoring systems take less time, but if you are hoping to use your credit score to obtain an unsecured credit card or a loan, you will typically need a longer timeline.

What documents do immigrants need to apply for a secured credit card?

Opening a secured credit card involves creating a bank account where your security deposit will be held. To do this, you’ll need identification. This might be a valid passport or a visa. You’ll also need proof of your U.S. address. This could be a utility bill, lease agreement, or an official government letter mailed to you at your physical address. A Social Security number is not required, but some banks will require you to have an Individual Taxpayer Identification Number (ITIN) that you obtain from the IRS.

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Photo credit: iStock/jacoblund

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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