Banking and credit for immigrants and new arrivals

Why a U.S. account comes first

A U.S. bank account lets you receive your pay by direct deposit, pay rent, build a financial history and avoid carrying cash. It is also the foundation for building credit, which landlords, phone companies and lenders check. Choose an institution insured by the FDIC (banks) or NCUA (credit unions) so your deposits are protected up to the legal limits. It is one of the first steps in our moving to the U.S. guide.

Can you open a bank account without an SSN?

Federal rules require banks to verify who you are, but they do not require an SSN for every customer. Many institutions accept other identification from noncitizens. Policies vary, so ask before you visit.

• Identity: your passport, often with your visa, I-94, green card or EAD. Some banks also accept a consular ID or state ID.
• Taxpayer number: an SSN, an ITIN, or for some nonresidents a foreign tax ID and IRS Form W-8BEN.
• Proof of U.S. address: a lease, utility bill, employer letter, or university housing letter.
• Opening deposit, which may be small or zero.

Credit unions and community banks are often flexible with newcomers. Some large banks have programs for international students or employees who are relocating. Online-only accounts may require an SSN, so check before applying.

How to build U.S. credit from scratch

Credit histories generally do not transfer between countries, so most newcomers start with no U.S. score. Credit reports are kept by three nationwide bureaus, and scores are based on how you repay, how much of your available credit you use, and how long you have had accounts.

Some lenders and card issuers consider international credit history or accept an ITIN instead of an SSN. Rent and utility payment reporting services may also help. After six months to a year of on-time payments, you may qualify for an unsecured card.

Everyday money tools

• Checking account: for paychecks, bills and your debit card. Look for no monthly fee or one you can waive with direct deposit.
• Savings account: for an emergency fund. Many online banks pay higher interest but may require an SSN.
• Debit cards draw directly from your account and do not build credit.
• Payment apps are convenient for paying people you know, but money sent by mistake or to a scammer is often hard to recover. Do not use them to pay strangers or for goods you have not received.
• Checks are still used for rent and some bills. Your bank can order them for you.

Renting, utilities and deposits

Without a U.S. credit score, landlords, phone carriers and utilities may ask for a larger security deposit, a co-signer or several months of rent in advance. An employment offer letter, bank statements and references from previous landlords can help. Read leases carefully, get every promise in writing, and keep records of your deposit. Many states limit security deposits and require landlords to return them on a set schedule after you move out.

Car loans and other borrowing

Lenders generally weigh your income, credit history and immigration status. People on temporary visas may find loan terms limited to the length of their authorized stay. Compare the total cost of credit, shown as the annual percentage rate (APR), and be wary of dealers or lenders who pressure you to sign immediately or add products you did not ask for. Avoid payday loans and car title loans, which carry very high costs.

Sending money abroad and the 2026 remittance tax

The 1% remittance tax

The 2025 budget law (Public Law 119-21) added a 1% federal excise tax on certain remittance transfers sent from the U.S. to other countries, starting with transfers made after December 31, 2025. Key points as of October 2026:

• It applies to transfers you fund with cash, money orders, cashier's checks or similar physical instruments. IRS proposed rules published in April 2026 would add traveler's checks.
• Transfers funded from a bank account or with a debit or credit card are generally not taxed.
• It applies to citizens and noncitizens alike, and the remittance provider collects it from you at the time of the transfer.
• The tax is calculated on the amount sent, not on the provider's fees.

As of October 2026, the April 2026 IRS rules were still proposals, not final. Under them, very small transfers that fall outside the federal definition of a remittance transfer ($15 or less as of October 2026) would not be taxed. Ask your provider how the tax applies to your transfer, and keep your receipts.

Choosing a transfer provider

Federal rules require most remittance providers to tell you the exchange rate, fees and the amount that will arrive before you pay, and give you a short window to cancel. Compare the total cost, not only the fee, because a poor exchange rate can cost more than the fee itself. Use a licensed provider and keep your receipts.

Scams targeting newcomers

Newcomers are frequent targets. Watch for these patterns:

• Government impersonation: calls or messages claiming to be from USCIS, ICE, the IRS or SSA, threatening arrest or deportation unless you pay. Agencies do not demand payment by gift card, wire, cryptocurrency or payment apps.
• Fake checks and overpayment scams: someone sends a check for more than owed and asks you to return the difference. The check later bounces and you lose the money.
• Rental scams: listings that ask for a deposit before you see the property or meet the landlord.
• Money mule requests: "jobs" that involve receiving and forwarding money. This can expose you to criminal charges and immigration consequences.
• Notario and visa fraud: people promising faster visas or guaranteed approvals. See avoid immigration scams.

Tax forms from your bank

Banks report interest you earn to the IRS. Residents receive Form 1099-INT; nonresidents who gave the bank a W-8BEN may receive Form 1042-S instead. Keep these forms for your tax return. If your status changes from nonresident to resident for tax purposes, give the bank an updated Form W-9 so it reports correctly. See taxes for new residents.

If you leave the U.S. later

Before you leave, update your address with your bank, decide whether to keep or close accounts, and ask whether the bank allows nonresident customers. Some banks close accounts of people living abroad. Pay off or close credit cards responsibly so your history stays clean if you return.

Questions to ask

• Which documents will this bank accept from me without an SSN?
• Does this card report to all three credit bureaus?
• Is this transfer method subject to the remittance tax, and what is the total cost?
• Will my account stay open if I move abroad?