Why The Wise Debit Card Doesn't Build Your Credit
Building your credit is an integral part of building your new life in the U.S. There are several ways to do so, but the Wise Debit Card doesn’t help build your credit. In fact, no debit card does. When you use a debit card to pay for something, you’re spending your own money drawn from your bank account. There is no credit involved, so nothing for the debit card issuer to report to the credit bureaus.
A credit card does build your credit. We’ll explore the best credit card for international students in the USA, applying for a credit card as a student, credit cards for non-U.S. citizens, and credit cards for Green Card holders so you can start building your credit.
International student credit cards
International students without a credit score are eligible for some credit cards. Some cards cater to international students and others without an SSN or credit score, including Petal and Sable. Sable also offers bank accounts for international students and others without credit scores or SSNs.
Both cards report your activity to the credit bureaus, helping you to build credit.
Best credit cards for students
There are dozens of credit cards to choose from, but some are less suited to college students than others. These are some things to look for in a student credit card:
Activity is reported to at least one major credit bureau, preferably all three (TransUnion, Equifax, Experian)
No annual fee
If it’s a secured card, that it can transition to a traditional card after a number of on-time payments
Perks like cashback
A free credit score
No foreign transaction fees
Applying for a credit card as a student
If you’re under 21, under federal law, you must be able to prove you have enough income to repay charges to a credit card or a co-signer. A co-signer is someone who agrees to pay the credit card bill if you cannot. Not all credit cards allow for co-signers.
What constitutes “enough” income isn’t spelled out, but sources can include income from a job, allowance, and grants or scholarships. The last two must be paid to you directly and in regular intervals rather than in a lump sum. If the income isn’t a lot, you may still be approved, but your credit limit might be low. That doesn’t matter in terms of building credit.
International students (and anyone else) don’t need an SSN to apply for a credit card. Many issuers will accept an ITIN instead.
Credit Cards for non-citizens
You do not have to be a U.S. citizen or a Green Card holder to apply and be approved for a credit card (or to open a bank account). You will need to verify your identity and your ability to pay the bill each month. You will also likely be required to apply in person (at a bank branch) rather than online. Some of the things you may need to provide include:
Photo ID
Proof of employment or income (pay stubs, bank statements)
Proof of address (utility bill, rental agreement)
ITIN
Building Credit
A debit card is a great tool. You may have expenses that you prefer to pay with cash rather than credit, and it lets you take physical money out of an ATM or get cash when paying for things in many grocery and drug stores.
But debit cards do not build your credit score. A credit card can help you do that. At Upwardli, we can help you find the right financial products for you, including debit and credit cards. We work with companies that understand the needs of international students and other non-citizens. Let us help you find the tools you will need to build the foundation of your new life in the United States!
