I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.See all posts Frank Gogol
How to Get a Personal Loan with ITIN Number
Immigrants living and working in the U.S. have a difficult time getting access to adequate financial services. Their lack of Social Security Numbers causes them to miss out on many offers. What can they do when they need credit? Are they allowed and able to get credit in the U.S.?
What is an ITIN Number?
An Individual Taxpayer Identification Number (ITIN) is a unique 9-digit code used to identify someone for tax purposes. It does not replace any other forms of identification. It only serves as another form of identification. People without a Social Security Number (SSN) need an ITIN to file their taxes. The Internal Revenue Service (IRS) issues these unique codes to those who are eligible and who require it in order to be able to file their taxes. An ITIN number will expire if it has no tax filings for three consecutive years.
Can I get a Personal Loan with an ITIN Number?
Yes, you can. You’ll need to find a lender that is willing to help you first though. Remember, you are still applying for credit and an ITIN alone simply won’t be enough. You still need to convince a lender to approve the loan you apply for. We’ll explain how you can get a loan with an ITIN in more detail below.
5 Best ITIN Personal Loans
If you don’t have a US Social Security Number, the unfortunate truth is your personal loan options will be more limited. That said, there are a handful of lenders who don’t require an SSN and will take an ITIN instead. Here’s a quick overview of our picks for best ITIN personal loans:
- AmOne (Best for ITIN with Okay or Good Credit)
- Spring Loans (Best for ITIN with Bad Credit)
- First Premier Lending (Best for ITIN with Bad Credit)
- Upgrade (Best for ITIN with Good Credit)
- BestEgg (Best for ITIN with Okay Credit)
Read on to learn about each of these lenders and why we picked them.
1. AmOne (Best for ITIN with Okay or Good Credit)
For individuals holding an ITIN and seeking personal loans, AmOne’s lender-matching platform can be beneficial. They connect borrowers with a wide range of lenders, some of whom might be open to considering applications from non-traditional applicants who use an ITIN instead of a Social Security Number, catering to diverse financial needs.
2. Spring Loans (Best for ITIN with Bad Credit)
Spring Loans offers various lending solutions designed to fit a spectrum of needs. Recognizing the unique financial situations of ITIN holders, they might have provisions or partnered lenders that understand the distinct requirements and challenges faced by this group, potentially making loan access more attainable.
3. First Premier Lending (Best for ITIN with Bad Credit)
Known for its bespoke lending services, First Premier Lending might entertain applications from ITIN holders. Their focus on custom-tailored solutions means they consider various factors beyond just traditional credit scores, potentially accommodating borrowers who primarily identify with an ITIN.
4. Upgrade (Best for ITIN with Good Credit)
Upgrade’s comprehensive lending process emphasizes clarity and inclusivity. For ITIN holders, this could translate into an approach that considers their unique financial context. While their policies might vary, Upgrade’s transparency ensures potential borrowers are well-informed about their prospects.
5. BestEgg (Best for ITIN with Okay Credit)
BestEgg, with its user-friendly platform and diverse loan options, could be an avenue for ITIN holders to explore. While it’s crucial to understand their specific policies regarding ITIN-based applications, BestEgg’s modern approach to lending might offer solutions for those with non-traditional financial backgrounds.
3 Reasons to Get a Personal Loan with an ITIN Number
You can qualify for a personal loan with an ITIN number, but what will you use it for? Here are a few possible scenarios that could use a personal loan for.
Buy a Car
Traditional lenders in the U.S. like to take on secured loans. An auto loan is a form of secured credit. The car financed by the loan serves as collateral for the loan. This means the lender may repossess the car and take it as payment for the loan if the borrower defaults on payments. Auto loans also require a down payment. This is a type of deposit you need to pay before the loan is approved. You can always use a personal loan to finance your down payment for an auto loan if you don’t have enough cash saved up.
Immigrants also often struggle to get a car loan approved without an SSN. If this is you, you can even use a personal loan to buy a car. Find the right lender willing to help you and use a personal loan to buy the vehicle you need.
The U.S. real estate industry is infamous for expensive property. It may differ depending on where you buy or lease. But rent in the U.S. is not cheap. This also means the rental deposits associated with rental contracts are expensive. Depending on the agreement you have with your landlord, you could be expected to pay up to 3 months of rent as a deposit (or worse even more).
You don’t have to lose out on that deal because of a deposit. Get a personal loan with an ITIN number and use it to cover your rental deposit. A loan for a rental deposit may just be your answer.
Pay to Relocate Family
Moving your family can be a stressful time. But sometimes it’s a necessary change Whatever your reason is for moving, it won’t change the cost. Moving is expensive and especially if it is on short notice. You need to find help fast and don’t have the luxury of looking for the cheapest and easiest solutions.
You don’t have to struggle with cash flow issues and potentially miss out on a new job opportunity. Even if your new job offers better payment and could help you to cover the extra costs of moving, you still need that money now. How can you bridge this gap? Take a personal loan with an ITIN number and cover the costs required to relocate your family. Apply for the amount needed to pay the removal company and any transport costs included in the process. A loan for relocation can be your answer.
Credit Cards as an Alternative to ITIN Personal Loans
Perhaps you need a different kind of credit. You don’t need something like a personal loan which is a once-off disbursal of funds. You don’t need to finance a big project. You need something that helps to cover costs on a month-to-month basis or whenever you need it. What solutions are there?
Have you thought of getting a credit card with the ITIN number? A credit card can help ease your budget constraints. You get access to a credit limit on your credit card and you can spend on your credit card up to that maximum limit. You just need to pay the required monthly payment which is determined by the interest rate on the card. Credit cards are useful because once you have it you have access to a specific amount of credit. You don’t need to ask permission from your bank to use it. Simply use and repay in the ways agreed with your credit provider.
Here’s how you can get your credit card without an SSN:
- Apply for an ITIN – Visit the IRS website and follow the instructions to apply for your ITIN.
- Find lenders – Find the lenders who offer credit cards to people with an ITIN number.
- Check your credit – Get your credit report and check if all information is complete and truthful. Errors may cause obstacles in the future.
- Apply for a credit card – Once you’re comfortable with your credit you can apply for a credit card with your ITIN number.
Use your credit card wisely and repay it as required to also build a stronger credit score. Happy spending!