Credit 101 for International Students
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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 may prepare you for financial opportunities associated with longer-term life in the US (including buying a car or home)
- Using credit cards can provide many financial incentives, like reward programs and zero international transaction fees
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.
Many cards will offer you rewards on your purchases, either as cash back or as points. Example: A card may offer 3% cash back on all purchases. If you spend $350 in a single month, that would earn you $10.50 cash back.
Using a credit card is one of the easiest ways to build credit and set yourself up for a longer life in the US. Having a high credit score can help you access better interest rates when you apply for debt in the future. In addition, many banks will only give you a credit card if you have a good score. Learn more about credit scores from Financial Wellness @ Penn.
Some credit cards will offer you a cash bonus if you spend a certain amount in a few months after opening the card. Example: A card may offer you $200 when you spend $1,000 within the first three months of opening the card.
| Bank | Pros | Cons | Branch Near Campus |
|---|---|---|---|
| Discover | No 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 | |
| Chase | Typically provides competitive rewards (travel, hotel, etc.) | Social Security Number required Credit history required | Yes |
| PNC | Penn has a relationship with PNC | Social Security Number required Credit history required | Yes |
| American Express | No dining decline | Social Security Number required | No |
| Capital One | Social Security Number required Good credit history required | No |
