Credit 101 for International Students

This page was created in collaboration with the International Student Advisory Board (ISAB).

International students may consider building credit in the United States for a few reasons:

  • Having credit helps generate your credit score, which can impact your eligibility to apply for loans, buy a car, and sign a rental contract
  • Using credit cards can provide many financial incentives, like reward programs and zero international transaction fees

Remember that credit is debt. Using debt can be costly when not used carefully. To learn more about managing your credit, we recommend also reading our pages about Responsible Debt Habits and Making Borrowing Decisions

Benefits of Credit Cards

First, let's explain the difference between debit and credit. Purchases made with a debit card use your money from your bank account. When you make a purchase with a credit card, you are borrowing money from a bank to make a purchase. The bank will later send you a bill (usually within a month) that you must repay using your own money.

This is not an exhaustive list, nor an endorsement of any particular financial institutions.
Bank Comparisons
BankProsConsBranch Near Campus
DiscoverNo credit card history required

Social Security Number required

No in-person branch, online application only

No
Bank of America

No Social Security Number required (as long as there is a deposit in your checking account)

No credit history required (contingent on deposit in your checking account)

 Yes
ChaseTypically provides competitive rewards (travel, hotel, etc.)

Social Security Number required

Credit history required

Yes
PNCPenn has a relationship with PNC

Social Security Number required

Credit history required

Yes
American ExpressNo dining decline Social Security Number requiredNo
Capital OneTypically provides competitive rewards (travel, hotel, etc.)

Social Security Number required

Good credit history required

No
The below examples are not suggested paths that students should take, but rather examples of paths that students could take to begin building credit in the U.S.
Sample Credit Journeys

Example 1: Shawn

  1. Shawn opens a checking account with PNC during orientation.
  2. He applies to student jobs on campus and is hired to work part-time at the library.
  3. Since Shawn has obtained an on-campus job, he applies for a Social Security Number (SSN).
  4. Once Shawn has received his SSN, he applies for a Discover student credit card. He links his credit card and checking account so he can make payments.
  5. At the end of each month, Shawn checks his statement balance and uses the app to pay his bill from his PNC checking account.

Example 2: Mia

  1. Mia arrives to the U.S. before orientation and schedules an appointment to open a checking account at Bank of America. She deposits an initial sum of $850.
  2. During the same appointment, she asks the bank representative for help applying for a credit card. Mia is approved for the card. 
  3. Mia sets up auto-pay so that her statement balance is automatically paid using her connected checking account each month.