Obtaining US Credit Cards

The US credit card market is attractive enough to make people go out of their way to obtain credit cards. The average American has about four credit cards, with those having the highest credit score and income owning the most credit cards. Paradoxically, many of the highest earners are travelling the most luxuriously for the least amount of money. Influencers showcasing luxury travel is now increasing everyone’s appetite for maximizing credit card rewards, and opportunities abound for just that. If you can’t access these opportunities, you’re left paying cash, subsidizing the rewards of others, and missing out on them yourself.

How hard is it to obtain US credit cards as a new resident, non-resident, or even just as a traveller? What these groups have in common is a major hurdle to maximizing travel rewards: lack of credit file. The world’s most attractive bazaar of points, miles, frequent flyer benefits and hotel awards, that is the US credit card market, seems positively out of reach if the condition of entry is creditworthiness. With no local credit history, there is no credit file, and no credit score to determine whether a lender might risk extending credit. If you apply online, the result is an automatic rejection, no matter how good credit you have at home.

Of course, new residents may suffer from lack of access to credit in many ways – from not being able to secure postpaid mobile phone plans, to car loans and mortgages. And wait times to receive your SSN or ITIN, which makes all of this easier, are long. Amidst these hurdles having a fancy points-earning credit card may seem like a minor issue, but obtaining a US credit card can actually solve all of these issues. It can also be the beginning of endless opportunities for free travel with points and miles.

Starting your credit journey in the US

People often start their credit journey with secured credit cards where you need to deposit money at the bank as collateral. These cards tend to be cumbersome, costly, come with a tiny credit limit, and offer no points or perks. In contrast, following our strategy will enable you to immediately get such premium cards as the Amex Platinum, which would otherwise be the result of years of credit building. We’ll walk through the steps to get those first cards, free travel with signup bonus points, and you’ll emerge with a reasonable credit score to boot.

This guide applies to non-residents and travellers as well. What you need to begin is:

• US address (could be e.g. a relative’s address)
• US phone number (eSIM, prepaid, some VoIP services may work)
• US bank account (best opened as an existing customer of an international bank. Many banks also open accounts for travellers, requiring just passport or other ID. People report mixed results with fintechs such as Wise.)

We mentioned that your credit back home doesn’t matter if there’s no US credit file. Actually, your credit at home could be most useful. You can utilize it through existing relationships with financial institutions, and in our quest to obtain US credit cards, we’re now specifically referring to American Express, and international banks.

We at Miledom have benefited a lot from our relationships with both. If you’ve been a customer for a long time before moving, great! You probably qualify immediately. If not, you may want to become one before the move is imminent. (Other strategies exist too, such as asking a friend to add you as an authorized user of a US card, which will build your credit score. Later, you could apply with that ‘inherited’ credit history.)

Get started with Amex Global Transfer

We’d suggest that obtaining a US Amex should be your first priority to start building credit and enjoying the perks. Amex is famous for its worldwide service, and offers a unique benefit to existing cardholders: you can get an Amex in the US based on your history with Amex in your home country. You just need to have been an existing member for at least three months. A longer history doesn’t hurt. (This applies to getting an Amex in other countries too.)

Amex offers a service known as Global Transfer. Recently they’re calling it Global Card Membership. It’s actually less a transfer and more an expansion of your Amex relationship. Your home card status will be unchanged, you might get your new instant card number online, and you’ll be shipped a shiny, new Amex in the US. (This service is particularly well integrated in the US, Australia, Canada, Hong Kong, Singapore, and UK, and can usually be completed online. It works for other countries too, but you might have to call in.)

You can also use Nova Credit

Alongside Amex’s Global Transfer, you may apply through Nova Credit to utilize your foreign credit history, even if you aren’t an existing cardholder. There are some cards from other issuers too. Amex has required an SSN or ITIN when applying through Nova since 2023. If you go through Amex Global Transfer, you can open your initial Amex card without an SSN or ITIN, and you can later apply for more based on your history with Amex.

Obtain an ITIN

You’ll likely want an Individual Taxpayer Identification Number (ITIN) sooner or later to qualify for other card issuers’ products and bank accounts.

An ITIN can be obtained by persons not eligible for an SSN by the IRS Form W-7. It’s free to apply, but the process is intricate and can be time-consuming, especially if you’re not physically in the US to apply. Remote application is possible by mailing in original or certified (not notarized) copy of passport to the IRS. Note that you may qualify for an ITIN by different ways, such as claiming tax treaty or incurring ‘tax liability,’ i.e., obtaining any income from a US source, even a few dollars from an online casino or an investment. You may want to consult a professional if the W-7 and tax return form are causing you headaches…

And indeed, there is an expedited, if expensive, option of using an IRS Certified Acceptance Agent who can certify you and your documents remotely. (You may also contact us for a referral.)

After 6-12 months of having the US taxpayer identification number linking to your credit file, you’ll be able to open bank accounts and access the credit card market at large. Explore some features of different US credit card programs and their points value here.

Open a US bank account (and credit card)

The second way, which can and should be combined with the first, is opening an account with the US entity of your bank. Global banks such as Citibank and HSBC offer expat services and can often open a US account for you even remotely. Popular choices for Canadians include BMO Harris, RBC and TD. You can often get a premium credit card (with a signup bonus!) to go with your new bank account, and if you’re not yet in the US, they might be able to ship it to you overseas. Some of these bank accounts offer significant bonuses for qualifying applicants.

These banks’ credit cards will likewise contribute to your credit file.

Slow does it

Finally, if you lack all of these options, due to no or damaged credit history, or no possible partner bank in any region… You’ll still be able to default to secured credit cards with collateral put up with the bank. You may also be able to get student credit cards. Your credit score will rise with timely payments and age of credit history, and you’ll eventually be able to get nearly any credit card on the market.