Bank Account in the US

[AspirEEng]

Hi

I heard it may be an issue to open up a bank account and get a credit card if you're an international student without a credit history in the US.

Has anybody looked into this yet? Any insights?

Im also thinking about the best way to transfer funds from my home country account to a US account, since some banks can charge obscene amounts of money just for the transfer.

[Panda77]

Ok, I'm not 100% sure as this information might be somewhat outdated, but ... To open an account shouldn't really be a problem, just take some cash with you, deposit it at the bank and that should be all it takes. For the credit card, indeed there could be some issues regarding you missing a US credit history and the way to go is not to apply for a newly issued credit card but instead to have your old credit card (assuming you have one from your country) converted into an American one.

As for the ransfering of fund, I'm really not sure (I haven't looked into that yet) but I'm afraid that if there are fees to pay you will simply have to pay them. Anyhow, the best source of info is your current bank, ask them and I'm sure they'll help you out finding the best solution for you.

[AspirEEng]

Thanks Panda.

Do you have any details about the conversion of an old credit card? Its the first time I heard about this option and it sounds interesting...

[Panda77]

I'm sorry AspirEEng, I don't really have the details and I doubt it will be easy to find this information from outside the US. Personally, I will just wait to arrive and take care of things from there.

Oh, btw, I was just charged $38 for a wire transfer. I wouldn't call it an "obscene amount of money," but you are right it isn't cheep!

[Guest Cheryl]

If transferring your credit card doesn't work, the good thing is that you're a student and thus eligible for student credit cards, whcih they hand out to just about anyone with a pulse (they assume that if you're a student your parents will cover your ass if you can't pay the bill). I don't think your nationality will matter, as long as you can prove that you're a student at an American university. Alas, you don't get that many benefits or extras with student cards, but you should be able to find one that at least doesn't charge you anything.

[Guest hydsnare]

i think cheryl makes a good point about student cards... also i'm informed that there are several school specific cards that are available - just need to be enrolled or an alum to get the card... again not too many benefits but at least u start creating a credit history... i have also heard of students taking small short term loans and then paying it back - just to create a favorable credit history...

[Guest Jeni]

With regards to transferring money, I was advised at my bank that it is just better to write myself a money order and take it with me, instead of wiring money to a US account, which I will likely have trouble opening from abroad. Also, it costs way less to write a money order compared to wire transfers. I was wondering if it is even easier to open an account with an international bank, which would be accessible form everywhere? Know any such?

Some of you make a good point with the student credit cards, but that is a later option. I'd like to know what people will do about credit cards WHILE settling down. It'd be unconceivable crossing the border with cash to last 1-2 months, as I do not know how long it'd take to open a bank account and get the SSN required for it. An option is to keep the old credit card of course, but I am not sure I want to deal with all the cross-bank/country bill payments, extra fees and closing the account from afar.

[Panda77]

Well, I’ll tell you what I will do.

I’ll take some cash with me, but not much say about $1000 (enough to pay the first month of rent, the university fees, plus say $300 to open the bank account and minor expenses). I will definitely bring my old credit card and I’m 99% sure I won’t close the bank account in my country (unless my current bank advise me otherwise). Keeping track of two accounts isn’t really too hard especially because my intend is to live out of the money my assistantship provides and use my current funds as backup or extras (say a trip back to my country over the holidays).

Initially I might need to transfer something (indeed, the idea of the money order is interesting, I will need to check into that one) for the first month, but really not much. Thereafter, I will just use my stipend.

Btw, settling in will not require two month rest assured, is the U.S. we are talking about! Things over there are done efficiently and even if you might need some time to figure out how the system works (given that you come from another country) once you have everything will go smoothly. Obtaining a SSN will probably not require too long (here I’m just guessing but I would bet on one maximum two weeks) and perhaps it might just take minutes! Also, it is very much possible you won’t need a SSN to open a bank account (it was a long time ago, but last time I did it I didn’t had a SSN).

[rising_star]

Nowadays, a SSN is pretty much standard for opening any sort of bank account. I would advise the money order/cashier's check route for bringing money over and opening account. Also, an ATM card from your current bank would be great and you should advise them that you'll be making withdrawals from the US. (Make sure you can bank online just to keep track of things and to make it easier for them to contact you!).

I went the other way... study abroad in Europe. A bit different because I didn't need to open an account but I did rely heavily on my ATM card, it's a sound, reliable backup.

As far as getting an SSN, no clue how long it takes. But I do know it takes 2 weeks for an American to get a replacement SSN card (lol, I've lost two and now the latest is lost somewhere in my mom's house...)

[Debating]

You should be able to open a bank account without an SSN and give them that later (you'll need to go to a branch, can't do it online without an SSN). As far as bringing money--I'd go with the money order or a traveler's check, wire transfers are really hard to do to/from personal accounts here. Getting an SSN may take anywhere from a couple of days to several months. Although it's rare, one of my friends had to wait for over two months, which caused her severe problems as she couldn't start working before getting the SSN and she ran out of money.

Good credit cards are almost impossible to get without an established credit history, but as mentioned, student ones are a good option. After you've proven you're reliable (usually 6-12 mo later), you can apply for a regular card. To get one with benefits and a good APR, you may have to wait a couple of years.

Good luck!

[AspirEEng]

Thanks everyone, there are good ideas there..

Another option that may be safer than a regular money order is travellers cheques, which one can easily cancel if stolen (I guess they are best if the amount of money you are bringing is not too great)

Panda - I heard of someone who payed $200 for a transfer... I guess that also depends on the amounts...

Besides the transfer itself I know that banks in my country (Israel) charge an additional fee for depositing or withdrawing money in foreign curreny (Say I wired in $10K originally in US dollars and then wired them out of the bank I'd leave them a present of $400...)

[Noesis]

What I can also suggest is to have your bank (or you can do that yourself you own checks) write a check with the money you want to take from your bank account, then deposit the check to your new US bank account. I havn't done it, but it should work and it shouldn't be that expensive.

As for SSN it takes about one month to get your card. Some employers would give you a job if you can show them the slip of paper they give you when you apply for a SSN, some others wouldn't. But you do need the number if you want to open a bank account.

[Guest Cridamour]

By the way, when do you get your SSN? Do you only get the number when you get the card? (i.e. a month after applying for it?) Or can you get the actual number before that? (I need it for a scholarship payment which i'd rather receive sooner than later...)

[alliecg27]

I don't know if this is helpful at all, but it's worth a shot. I also went the other way- studied abroad in London. I opened an account with HSBC because they're international and it made dealing with money a lot easier. Also, I wasn't charged ATM fees every time I needed cash because it was an HSBC card.

Hope that helped a little- good luck!

[lalalacereza]

I have a credit card that charges no overseas cash withdrawal fee and no currency conversion fee (Wizard, for any Australians reading). I will load it up with $ and then take out the cash and deposit it in my bank account. No fees!

[kent shakespeare]

opening a bank account in the US these days takes a lot of documentation and is a huge headache, even for US residents. It's actually easier for a US resident to open an account in another country than it is at home, in my experience.

if your bank card works on any regular cash network (Visa, Plus, etc), it will be easier to use your home country bank, in all honesty, and work by ATM.

[fuzzylogician]

I have a few questions of my own:

Which bank do you recommend opening an account with? Any banks to steer clear of?

Do I just walk into a branch near my home and say I want to open an account? What documents will I need to have with me?

Do I get a checkbook? Debit card? Can I get a credit card right away (how do I know which one is good)?

Anything else I need to know?

Thanks!

[kent shakespeare]

I recommend steering clear of any of the big-name banks; they no longer care about any customer with less than six-digits ($) in accounts. I favor small, local banks (but not all of them are good - I'd seek advice from people alrady at the school you're going to).

you will probably need multiple fors of identification - a passport is always a good first one. a college/university ID is another good one. As a foreigner, you might need extra papers, too. As I recall, you may need additional proof of address as well - a bill in your name, with your current address. There may even be a multi-day waiting period while a background check is done.

a debit card should be an easy acquisition. a credit card will likely be a bit harder, and in my opinion , not worth the hassle. A decent bank card should also function like a Visa, but a bank might give you a bare-bones ATM card first, before you can upgrade to a debit card.

[LingGrad2009]

Another thing to check for is if your university belongs to or runs a credit union. In addition to getting better service and rates in almost every imagineable category, a university credit union will definitely be more used to setting up accounts for international students. The only downside to a credit union is the severe shortage of ATMs outside of their immediate area. This is a non-issue nowadays though with every grocery store operating as a feeless ATM.

[s800x]

As an international student I would be happy to set up a US bank account with just a debit (ATM) card. However, is it possible to get a cell plan with just a debit card? When I've looked at some plans online it seems like they want monthly payments paid with a credit card only. Is this always the case?

[LingGrad2009]

Is this always the case?

No. You'll have no problem setting up an account. Cell phone companies here would sign up my dog if he was willing to enroll in a two year contract. And if all else fails, you can get a pay-as-you-go phone, which are designed for drug dealers and don't even require your name.

[MaximKat]

Don't you need at least some credit history for a contract?

[impatiens]

I recently set up an account as an international student at Citibank (recommended to me by my school). It was really quick and easy: there happened to be no lineup on a Monday morning and the whole thing took about 30 minutes, tops. I didn't need an SSN and the only documentation they needed were my acceptance letter and passport. I did have a lease for my apartment I'd just signed the previous day, but they didn't accept it because they would've needed the school to write a letter to vouch for it .

Shop around for banks that have a deal for students at your school. I got a no fee savings and chequing account, no minimum balance and they couriered my (complimentary) cheques to me within 3 days to my Canadian address. I didn't even have to make a deposit at the time (had up to 30 days to make my first deposit). I wired the money from HSBC Canada but the fees were egregious: $35 CAD at the time I sent the transfer (which is pretty standard), but by the time I received it in my Citi account, an additional $30 USD was taken out. Citi says they only took out a $10 USD commission, which leads me to think that some intermediary bank docked the other $20 USD. This sometimes happens with wires, based on my experience at work.

I've heard that you can buy USD money orders in your home country in your own name and then deposit them when you arrive in the US to your bank account. I guess traveler's cheques would be a similar means to transfer your money. This way it's cheaper than a wire and you don't have to have a US bank account yet; just be very careful and not lose the drafts/traveler's cheques. I was by chance in the US so I had the opportunity to set up my account but I understand a lot of international students won't be able to do so before they arrive for their studies.

Credit card: Citibank told me that if I showed them I had at least the equivalent of $2000 USD in my home bank account and that I could show them I had history at that bank (by showing them the six most recent monthly statements) that they'd give me a credit card. Obviously the more you can show them, the higher your limit.

Hope this helps!

[impatiens]

When I've looked at some plans online it seems like they want monthly payments paid with a credit card only. Is this always the case?

I suppose you can always hook it up to your home country's credit card as long as it's a major one (e.g. MC, Visa). You'd likely be paying a slight premium due to the exchange rate, but if you really want a contract I don't see why that can't be done. And (correct me if I'm wrong), the credit card won't even be charged unless you miss a payment. They only take your cc info for security purposes, e.g. if you bail on your bill. Maybe give your cc company a heads up (e.g. that you're relocating so you'll be using your credit card in the new city/region) so they don't freeze your card due to unusual activity.