In this article, we’re going to discuss ITIN loans. This will include everything you need to know before approaching a bank.
We’ll also discuss who can apply for an ITIN loan and answer some of the most frequently asked questions.
Of course, one of the first steps is navigating the US account opening system and knowing how to open the correct American bank account, which you can learn about for free right here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- ITIN Loans
- Who Can Apply for an ITIN Loan?
- Applying for Lending With an Identification Number
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
ITIN Loans
ITIN loans include both secured and unsecured financing, ranging from mortgages to car loans, credit cards, and overdraft facilities. Importantly, while anyone with an ITIN can apply for a loan, only ITIN holders with a sufficient credit history are likely to qualify and be approved. With this in mind, it’s important to build a credit history before applying.
In order to build a credit history in the United States as an ITIN holder, our team suggests that foreign non-residents typically consider applying for secured credit facilities. This may include a secure credit card from banks that serve foreign non-resident applicants. Unfortunately, there are only a few options like this available.
We outline all of the available options and the step-by-step strategies for building credit in the US as a foreign non-resident ITIN holder in our members-only US credit card report. If you are looking to access US bank financing with an ITIN, this report gives you everything you need to start the process.
Alternatively, suppose you’re looking for information on estate planning, specifically the sale of assets and how to withdraw money from a TOD account. In that case, we share the answers in the link here.
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Who Can Apply for an ITIN Loan?
In order to apply (and be approved) for an ITIN loan, the applicant must have an active ITIN and have a sufficient credit history to qualify with the bank where they are applying. In most cases, in order to have a sufficient credit history to qualify for financing, an ITIN should be active for at least six months. That said, the longer an ITIN has been establishing a credit history, the more favorable the score will likely be.
Applying for Lending With a Tax Identification Number
The process to apply for a loan with an individual tax identification number is identical to applying for a loan with a social security number. That said, there is one difference before you start the process, which is the bank you choose.
While all banks essentially issue loans to individuals with an SSN, not all banks will support individuals with an ITIN. But, this doesn’t have anything to do with the ITIN itself. Instead, it has to do with the characteristics of applicants who have ITINs. In particular, we’re talking about individuals who are non-US citizens, non-US residents, and who do not have an established credit history in the United States.
How to Apply for Lending With a Tax Identification Number
- Select a bank that issues loans to ITIN holders
- Confirm the bank will issue loans to non-residents
- Confirm the availability of your desired financing terms
- Complete the application with the bank or lender
Frequently Asked Questions
Below are three of the most common questions we receive from people looking into ITIN loans. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can an ITIN Be Used for a Loan?
Yes, an ITIN can be used for a loan application. In fact, an ITIN is the equivalent of an SSN for non-US citizens and non-US residents. That said, if an ITIN has been recently issued and the individual applying for a loan does not have a US credit history, then they are unlikely to be approved.
What Banks Do Loans With ITIN?
Many US banks will consider loan applications from US ITIN holders. However, the issue that ITIN holders face is that they are often non-residents. Unfortunately, many banks have restrictions on opening accounts for non-residents. So, if you are looking to apply for an account as a non-resident, you may find that the bank is unable to open an account or issue a loan.
Are ITIN Loans Suspended?
No, ITIN loans are not suspended at many banks. In fact, while there was a major change in ITIN loan issuance after the Global Financial Crisis in 2008, several banks continued to issue loans to ITIN holders. That said, it is also possible to apply and be approved for financing in the US without an ITIN.
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