Banking services provide individuals with an effective means to develop good financial habits while avoiding high fees often associated with alternative services. While opening an account may appear straightforward, those unfamiliar with English and those new to living in America may face challenges opening one.
Immigrants will require documentation and identification in order to open bank accounts and access financial services. However, other alternative products and services may require less information – this may help with paying bills, building credit history, cashing checks, or sending money abroad. Understanding banking rights will enable immigrants to access financial services and the products they require.
Know Important Points: To Access Financial Services
- To access financial services like bank accounts, credit cards, and loans is an invaluable way for newcomers to the United States to establish good money habits and build wealth.
- There are currently 44.9 million immigrants in America – 10.3 million of which are undocumented immigrants.
- An ITIN can help a person open bank accounts.
- Bank accounts, credit cards, loans, and other traditional financial products and services may be useful, but alternative means like the MAJORITY Mobile Banking App may make accessing financial products less cumbersome.
- Awareness of your banking rights could cost you hundreds or even thousands in unnecessary fees, so seek guidance if you need help understanding them.
Bank Accounts and Immigration Status
One of the most frequently asked questions from immigrants is if it’s possible to open a bank account without a Social Security number. The short answer is that yes, it is possible if other forms of identification can be provided as support – typically, this would include your:
- Name
- Birth date
- Address
- Identification
Immigrants may open bank accounts with an Individual Taxpayer Identification Number (ITIN) issued by the Internal Revenue Service. ITINs can be obtained regardless of immigration status and can be used to open bank accounts.
An ITIN does not grant permission for employment in the U.S. or qualify you for Social Security benefits or Earned Income Tax Credit (EITC) purposes.
Individuals required to file U.S. tax returns may include
- Nonresident aliens who must submit returns,
- U.S. resident aliens filing tax returns,
- Dependent or spouse of U.S. citizens/resident aliens/visa holders who are required to submit one,
- Nonresident aliens who claim tax treaty benefits and qualify as dependents for U.S. resident alien visa status must file returns (whether required to do so).
Nonresident alien students, professors, or researchers filing a U.S. tax return or claiming an exception typically need an ITIN. For more information about applying for one, please visit this IRS webpage.
Credit Cards and Loans for Immigrants
Immigrants have the right to apply for credit cards and loans through various banks and lenders in America; there may also be certain limitations and exceptions that must be fulfilled first.
Deferred Action for Childhood Arrivals (DACA) recipients do not qualify for federal student loan programs, yet may still obtain private student loans through banks and lenders as well as personal or auto loans.
Meanwhile, other noncitizens may still successfully apply for federal loans with sufficient documentation.
Qualification for private student, personal, auto, or mortgage loans varies by lender. No verification of citizenship or immigration status may be necessary if the applicant can present their ITIN number and proof of income – however, passports or other forms of identification may also be requested to complete their loan applications.
Fintech companies have developed credit products specifically tailored for people without social security numbers or ITINs; applicants may use either of these numbers instead. Once an account has been opened, users can then use that credit history to build it and eventually qualify for loans more easily.
MAJORITY is a mobile banking app specifically tailored to assist immigrants, providing personalized access with no overdraft fees or foreign transaction fees.
Home buying typically means taking out a mortgage, and immigrants have every right to apply for one in the U.S. The challenge lies in meeting lender qualifications regarding employment history, credit history, and proof of income; without an established credit history in America, it may make it more challenging for lenders to assess your creditworthiness.
Establishing your financial history by opening an account with either an international bank with U.S. branches or with a local U.S. bank can help. With both options, ITINs may allow for application; doing your research will help you find one willing to work with you!
Offering a larger down payment could make qualifying for a mortgage in the U.S. easier when you hold immigrant status.
Can I open a bank account without a Social Security Number or immigration status documentation?
Absolutely! Legally, you are allowed to open a bank account regardless of having or not having one of these documents (for instance, an Individual Taxpayer Identification Number – ITIN), though certain banks and credit unions will accept various documents instead. 2
What Is an Individual Tax Identification Number (ITIN)?
The Internal Revenue Service (IRS) issues ITINs to individuals required to file tax returns but ineligible for Social Security numbers. An ITIN may then be used instead of Social Security when opening new bank accounts or applying for loans or credit cards.
Do I Need Immigration Documents to Open a Bank Account?
No. Banks and credit unions should not ask you for proof of immigration status in order to open an account with them. If you believe any financial institution is discriminating against you due to your immigration status, file a complaint through the Federal Reserve System Consumer Complaint form online and file your case through their Consumer Complaint process.
Can undocumented immigrants open bank accounts in the U.S.?
Yes, all undocumented immigrants to the U.S. have the right to open bank accounts without needing to present proof of immigration status in order to open one. Ideally, banks shouldn’t require you to present such proof.
Final Statement: To Access Financial Services for Immigrants
As part of your transition into American society, understanding your banking rights can be an exciting opportunity to broaden your horizons. Opening a bank account may be the first step to building your finances on solid footing and can make applying for loans or credit cards later easier. If opening one isn’t right for your situation, there are various other financial products and services you can explore to ensure you can cash checks, pay bills, and more while living here in the U.S.