Getting a credit card in America is easier than in any other country, and the cards come with far better benefits than found elsewhere. Some cards come with benefits that are useful for individuals living in the United States, but there also cards that offer fantastic perks for Americans living internationally.

Benefits to look for:

• Travel Insurance

• Auto Rental Insurance

• Emergency Medical Insurance

• Airport Lounge Access

• Hotel Loyalty Status

Did you know that most credit cards give better exchange rates than Wise or rates seen on apps like XE? Of course, if you’re planning to use a credit card in foreign countries, you’ll want one with no foreign transaction fees. These days it’s pretty common to be able to pay with a card just about everywhere you go – cutting out the need to transfer money from the USA internationally, or exchanging dollars for foreign currency.

Requirements

• Social Security Number (SSN)

You need a SSN to apply for a USA credit card.

• Income

This includes your personal income and anyone else’s income that will be responsible for paying the credit card statements. If you’re married this is often your combined income. Note that American banks do not ask for proof of income when applying for a credit card.

• Credit Rating

Your credit rating is the number one factor determining which cards you will be approved for. Having a long credit history, more credit available to you, and a good track record of paying on time are the main factors determining your credit rating.

If you have bad credit, a short credit history, or no credit rating at all then there are steps you can take to improve this.

• USA Address

Most banks will require you to have a USA residential address, or at minimum a USA address to send the credit cards to. They will not ask for proof of residence. Only in an emergency will a bank send a credit card overseas – such as you losing a card on vacation.

I recommend using a trusted relative or friend’s address. Have them open your mail and send you a photo of both sides of your credit card. If this is not an option, there are services that provide USA residential addresses who will receive, open, and take pictures of your mail.

The other options are to time your credit card applications so that you will be in the USA to receive the cards in the mail, or have your trusted friend or relative mail you the cards (this is expensive).

• USA Phone Number

You will need an American phone number to apply for credit cards. This number will be used to activate the credit card and to receive 2FA security text messages (pin numbers to approve transactions). You will undoubtedly have to deal with customer service at some point, and they will use your phone number in a variety of ways to verify your identity.

A VoIP phone number will work with some banks, but it will not with others. I strongly recommend obtaining a real phone number.

My Suggestion:

Tello – The cheapest and most reliable real USA phone number to keep while living internationally.

The cheapest plan is $5 per month, and you can change your plan or add minutes or data at any time. The flexibility is super beneficial for when I’m in the USA and need data daily.

Tello works perfectly on wifi – allowing you to send and receive text messages and phone calls as if you are in the United States.

You have the option to use an eSIM or have a physical sim card sent to your USA address.

Using my referral link will award both you and me $10 credit https://tello.com/account/register?_referral=P38B629R

Important

Credit Card Compatibility

Most credit cards work seamlessly with Google Pay, Apple Pay, Samsung Pay, or Paypal – but some do not! 

E-wallets are a thing now days – especially in Asia. Banks in Asia have taken measures to block points being earned from e-wallet top-ups. Banks in the USA have not, but it is worth checking to see which cards will work with your favorite e-wallet.

Credit cards come with awesome signup bonuses (SUB) which usually require a minimum spend within a specific time period. It would be horrible to miss out on a SUB due to not being able to use your new credit card.

If you plan to do all of your spending online, this is not an issue. If you’ll have your physical card, this is not an issue. Otherwise, it is an issue!

It is worth taking the time to check your desired credit card’s compatibility online. Or if you’re a subscriber (insert link to subscription), ask me!

Customer Service

Inevitably, you will end up on the phone with your credit card providers customer service. It is super common for American credit cards to be blocked for potential fraud when making transactions overseas. Yes, even travel credit cards with travel notices in place. It’s annoying, but the rewards are worth it.

When you call customer service, it is very common for them to ask if you have the physical card on you. I always say yes – always! I don’t know why they ask, but they do.

Chase and American Express give the least number of issues related to fraud for overseas transactions. It’s very rare that I have to call their customer service.

Capital One is problematic in the beginning, but after a few phone calls in the first month the cards work perfectly.

Citibank is well known for blocking cards due to potential fraud, and their customer service is atrocious. If you get to the point where they want to send you a ‘verification code’ via regular mail, politely insist to speak to a supervisor – they can sort it out.

Bad Credit, Thin Credit, or No Credit

If you’ve lived overseas for a long time, it’s common to have little to no credit history. Are you sending your kids to the United States for college? If they’ve grown up abroad, they probably have no credit history. This makes getting car loans or credit cards more difficult and more expensive. Fortunately, there are ways to fix this:

1. Become an authorized user on your friends, parents, or relatives credit card

• Your credit rating will improve as they spend and pay on time.
• You do not need to personally spend on your credit card.
• Be sure this person doesn’t tank your credit further by not paying.

2. Open a Credit Card

• Use pre-approval tools to see what you will be approved for.
• A hard-inquiry on your credit will temporarily hurt your credit rating. Be sure you will be approved.
• Open a Secured Credit Card, which requires a deposit. Spend wisely and pay on time. These are designed to build your credit rating.

Use pre-approval tools to see whI recommend the Platinum Secured Credit Card from Capital One

I recommend the Platinum Secured Credit Card from Capital One Click here to see

Note that becoming an authorized user will count as part of Chase’s 5/24 rule (insert link to credit card strategy).