How To Get A US Credit Card For Non-Residents (& Travel For FREE)

Summary

In this informative discussion, Tyler shares valuable insights on building credit in the US without a Social Security number. Key strategies include obtaining an Individual Taxpayer Identification Number (ITIN), establishing a US address, and opening a US bank account. Tyler recommends starting with secured credit cards or utilizing the American Express Global Transfer program. He emphasizes the importance of managing credit responsibly to maximize rewards and avoid common pitfalls like late payments. The conversation also touches on the differences between personal and business credit, and how to leverage credit cards for significant savings on travel and business expenses.

Takeaways

• 😀 Building a US credit profile is essential for both personal and business credit cards, especially for non-residents without a Social Security number.
• 🏠 A US address is crucial for verifying identity when opening accounts and applying for credit cards; it can be a friend's or family's address, or a subleased property.
• 📑 An Individual Taxpayer Identification Number (ITIN) is necessary for foreigners or non-US residents to build credit in the US.
• 💳 Opening a US bank account can be done online and is helpful for checking credit scores and managing finances.
• 🔄 American Express Global Transfer allows individuals with a good relationship with AMX in their home country to get a US credit card based on that relationship.
• 💼 Business credit is often tied to personal credit and is important for those who want to separate business expenses from personal credit utilization.
• 💡 Utilization ratio is a key factor in credit scores; it's better to show some credit usage rather than paying off the balance in full right before the statement closing date.
• 📈 Credit scores can be checked on platforms like checkfreescore.com for those with an ITIN, as they might not have access to Credit Karma or Equifax.
• 🎯 The best cash back cards for high spenders include the American Express Gold card for dining and groceries, and the Capital One Venture X for its annual travel credit.
• 🚫 Be cautious of annual fees and minimum spend requirements to avoid negative impacts on credit scores.
• 🗓️ Keeping track of credit card payments and fees is vital to maintain a good credit standing and avoid late payments.

Q & A

What is the main topic of the video script?

The main topic of the video script is about building credit in the US as a non-resident without a Social Security number, including steps and tips for obtaining a US credit card.

Why is it beneficial to have credit cards for business owners with large ad budgets?

It is beneficial for business owners with large ad budgets to have credit cards because they can scale their spending before money comes back from their ad campaigns and also get free stuff with the money they are already spending.

What is the first step in building a US personal credit profile according to the script?

The first step in building a US personal credit profile is to have access to a US address, which can be a friend's or family's place, and to have proof of address such as a lease document.

Why is an Individual Taxpayer Identification Number (ITIN) important for non-US residents building credit?

An ITIN is important for non-US residents because it allows them to build credit and report their credit card activities, payment history, and utilization to the credit bureaus.

What is the significance of having a US bank account in the context of building credit?

Having a US bank account is significant because it serves as proof of address and demonstrates to credit card issuers that the individual is planning to move to or is already in the US, which is a requirement for obtaining credit.

What is the American Express Global Transfer program and how does it work?

The American Express Global Transfer program allows individuals who have a good-standing relationship with American Express in their home country to apply for a US credit card based on that relationship, without needing a US credit score.

What is Nova Credit and how does it help in obtaining a credit card?

Nova Credit is a third-party service that evaluates an individual's credit profile from their home country and determines their eligibility for a US credit card, especially useful for those from countries not on the Global Transfer program list.

What are secured credit cards and how do they help in building credit?

Secured credit cards are a type of credit card where the credit limit is secured by a cash deposit made by the cardholder. They are easy to obtain and help in building credit by demonstrating responsible use of credit to banks.

Why is it important to keep the first credit card open?

It is important to keep the first credit card open because it has the initial start date of your credit history. Closing it would result in the loss of credit history and negatively impact the credit score.

How can one check their credit score as a non-US resident with an ITIN?

One can check their credit score using services like CheckFreeScore.com, which provides a VantageScore, or by accessing their bank's portal if they have an account that reports to the credit bureaus.

What is the difference between personal and business credit, and why is personal credit often prioritized?

Personal credit is tied to an individual and is often prioritized because it is checked by banks when applying for most credit cards, including business ones. Business credit, while important for corporate terms and payables, does not affect personal credit utilization, which can be beneficial for large investments.

What are some tips for managing credit card payments to maintain a good credit score?

To maintain a good credit score, it is recommended to pay credit card bills on time, avoid carrying a balance if possible, and use credit tracking apps to monitor due dates and fees. It's also advised not to open too many credit cards to avoid mismanagement.

How can one find Tyler for further consultation on credit card strategies?

Tyler can be found on Instagram under the name 'zeroc card Mastery', where he shares daily credit tips and travel hacks, and also offers consultations.