Opening a bank account and building credit in the United States

Before you start

• A photo ID (a foreign passport is accepted by many banks and credit unions)
• A US address, or a temporary address, depending on the bank

Documents you need

• Passport (photo ID)

  required

• Social Security number

  optional

• Proof of address

  optional

• IDNYC card (accepted by some banks and credit unions in New York City)

  optional

• Immigration documents such as your visa and I-94

  optional

Step by step

1. 1

   Step 1: Choose two or three banks or credit unions

   Compare monthly fees, minimum balance requirements, ATM networks and mobile banking. Ask whether a fee is waived with direct deposit. Low-cost accounts certified by Bank On have low, transparent costs and no overdraft fees. Call ahead and ask which foreign IDs the bank accepts and whether it needs an SSN or ITIN.

2. 2

   Step 2: Gather your documents

   Most banks ask for:

   • a photo ID: a US or state ID, or a foreign passport at many banks; some credit unions and banks in New York City also accept the IDNYC card;
   • your SSN or ITIN; without one you may only be able to open an account that pays no interest, because interest is taxable;
   • a second document such as a bill with your name and address, or your Social Security card;
   • money for the opening deposit, often $25 to $100.
3. 3

   Step 3: Open the account

   Apply at a branch or online. Ask for your account and routing numbers, a debit card, and the bank's direct deposit form for your employer. Set up low-balance alerts.

4. 4

   Step 4: Avoid overdraft fees

   If you opt in to overdraft coverage, the bank may pay a debit card purchase that exceeds your balance and charge a fee. You can stay opted out, and banks may still decline such purchases.

5. 5

   Step 5: Start building a US credit history

   Landlords, lenders and insurers may check your credit report before they agree to a lease or a loan. If you have no US credit history yet, ways to start:

   • a secured credit card: you deposit money (often $50 to $300) and receive a credit line matching the deposit;
   • a credit builder loan from a credit union, where you repay a small locked loan in installments that are reported to the credit bureaus;
   • paying every bill on time and keeping card balances below about 30% of your limit.

   Check your reports free of charge at AnnualCreditReport.com, the only official site; each of the three bureaus (Equifax, Experian, TransUnion) offers free weekly reports there.

Sending money abroad

Free financial counseling in New York City

Watch out

Common mistakes

• Choosing an account with a high minimum balance and paying a monthly fee every time the balance drops.
• Opting in to overdraft coverage without knowing the fee.
• Waiting months to start a credit history, then struggling with apartment applications.

Tips

• Ask your employer for the direct deposit form on your first day; some accounts waive their monthly fee with direct deposit.
• Use the IDNYC list of banks and credit unions if you do not have other ID accepted by your bank.
• Keep your foreign bank account open for transfers, but remember that US tax residents must report foreign accounts above $10,000 in total on an FBAR.

Frequently asked questions

Editorial answers written by our team, based on the sources below.

Official links

In your plan

• Open a US bank or credit union accountAdd to plan
• Start building a US credit historyAdd to plan

Sources

Written and checked by HomiStart editorial against the official sources below. Next scheduled check: 6 Apr 2027.