Access to banking can help people establish good financial habits and avoid the high fees often associated with alternative financial services. While opening a bank account may seem simple, people who do not speak English and those who are new to living in the U.S. may run into challenges.

To open a bank account and access other financial services, immigrants will need the right documentation and identification. There are also other alternative financial products and services that may not require as much information and can be helpful in paying bills, building credit, cashing checks, and sending money to others. Understanding banking rights can ensure that immigrants are able to access the banking products and services they need.

Bank Accounts and Immigration Status

One of the most commonly asked questions that immigrants may have is whether it’s possible to open a bank account without a Social Security number. The short answer is yes, it’s possible to get a bank account without a Social Security number if you’re able to provide other forms of supporting documentation or identification. The typical information that banks need to open a new account include your:

• Name
• Date of birth
• Address
• Identification

In place of a Social Security number, it’s possible for immigrants to open a bank account using an Individual Taxpayer Identification Number (ITIN). This number, issued by the Internal Revenue Service (IRS), is designed for people who do not have and are not eligible for a Social Security number. ITINs are issued regardless of immigration status and can be used to open a bank account.

You can apply for an ITIN if you are:

• A nonresident alien who’s required to file a U.S. tax return
• A U.S. resident alien filing a tax return
• The dependent or spouse of a U.S. citizen/resident alien/nonresident alien visa holder
• A nonresident alien claiming a tax treaty benefit
• A nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception
  

The IRS has a web page about how to .

Credit Cards and Loans for Immigrants

Getting a credit card or loan can help to meet financial needs and can be a way to establish and build a U.S. credit history. Immigrants have the right to apply for loans and credit cards, and a number of banks and lenders offer them. There are, however, some limitations and exceptions.

For example, Deferred Action for Childhood Arrivals (DACA) recipients are ineligible for federal student loan programs. However, they may be able to obtain private student loans from banks or other lenders, as well as personal loans or auto loans. Meanwhile, other noncitizens may be able to successfully apply for federal student loans if they can provide sufficient documentation.

Qualification for private student loans, personal loans, auto loans, or mortgage loans can vary from lender to lender. For example, no verification of citizenship or immigration status may be required if the application can provide an ITIN and proof of income. A passport or other identification may also be requested to complete the loan application.

As far as credit cards go, a number of financial technology (fintech) companies have developed credit products specifically for people who don’t have a Social Security number. Applicants may use an ITIN instead to get approved. If they’re able to open an account, they can then use that to establish and build a credit history, which could make it easier to qualify for loans.

Mortgages for Immigrants

Buying a home typically means getting a mortgage, and immigrants have the right to apply for a home loan in the U.S. The biggest challenge with getting approved is being able to meet the lender’s qualification requirements with regard to employment history, credit history, and proof of income. If you don’t have a credit history in the U.S., for instance, that can make it more difficult for lenders to assess your creditworthiness.

Opening a bank account with an international bank that has U.S. branches or with a U.S. bank can help you to establish a financial history. Again, you can open a bank account with an ITIN, and your lender may allow you to apply for a mortgage using your ITIN as well. Doing your research to compare mortgage options can help you find a bank that’s willing to work with you.

The Bottom Line

Immigrating to the U.S. can be an opportunity to expand your horizons, and it’s important to understand what banking rights you have. Opening a bank account can be the first step toward building a solid financial foundation, and it can make it easier to apply for loans and credit cards later on. If a bank account isn't right for your situation, there are other alternative financial products and services that you can explore to ensure you're able to cash checks, pay bills, and more while living in the U.S.