Resident and non-resident foreigners in the United States can apply to the Internal Revenue Service (IRS) for a tax identification number, popularly known as ITIN (Individual Taxpayer Identification Number). And when they meet the requirements to obtain an American social security number (SSN or Social Security Number), then it is time to transfer the credit from one social security to another (from ITIN to your new SSN).
Once this is done, they will need to start updating their information in the different dependencies of the State and, of course, at the banking level. This includes send a communication to the three main credit bureaus in the country: Equifax, TransUnion and Experian. Otherwise, your credit profile would be out of date, which could affect your score.
- 1 What is the Social Security number?
- 2 What is the difference between the ITIN and the SSN?
- 3 Can I exchange my ITIN for an SSN?
- 4 How to Replace an ITIN with an SSN: Additional Information
What is the Social Security number?
The Social Security Number is the 9-digit number that identifies the American citizen before the IRS and other government agencies, such as Social Security. You cannot accept a job without a social security number because you would not be included in the system.
Of course, the Social Security number not only limited to the workplace. It also gives the person other benefits, such as access to the health system, to the pension system and others. It is also used to obtain loans, credit cards and open bank accounts. Therefore, making credit without social security is a little more complicated than if you only have an ITIN.
What is the difference between the ITIN and the SSN?
You may be wondering how the individual taxpayer identification number (ITIN) of the number of Social Security (SSN) and the answer is a lot!
- The ITIN is issued by the Internal Revenue Service (IRS) while the SSN number is issued by the Social Security Administration.
- The ITIN is reserved for those foreigners who do not qualify for an SSN. Examples of this are foreign investors, spouses of Americans with a temporary visa, among others. Some self-employed undocumented workers can use an ITIN to work.
- People who have an ITIN number do not have access to the same benefits as those who have an SSN, such as earned income credit, social benefits, right to work in the United States, etc. But there is also medical care for undocumented immigrants and other services such as Harris Health Gold Card.
- The ITIN does not prove the legal status of an immigrant, unlike the SSN.
- Not all states in the United States accept the ITIN to open bank accounts or apply for a driver’s license.
- With an ITIN, it is difficult to buy a vehicle or apply for a loan at any financial institution, bank or Association of savings and credits.
Apart from their differences, there is a similarity between the ITIN and the SSN, and that is that both work as a tax identification number in the case of individual taxpayers. Therefore, using the ITIN or the SSN, anyone can file their federal taxes within the United States.
Can I exchange my ITIN for an SSN?
if you wonder “how can I change my ITIN for an SSN”, congratulations! We have prepared a small instruction guide to help you formalize your request. Let’s see what this is about:
Step 1: Download and fill out Form SS-5
Fill in the form correctly without making mistakes. Remember that the shape may not contain amendments or erasures of any kind. In addition, you will have to provide all the required information and accompany it with some collections.
You can get Form SS-5 through the Social Security website or at any of the local offices located near your home. How long it takes for Social Security to arrive varies by state, but on average it’s about three weeks.
Step 2 – Attach the relevant information
In order for your application to be processed and approved correctly, you must accompany it with certain documentation. These proceeds will be used to verify your identity, age and citizenship. Take into account that, to prove citizenship, the Social Security office will only accept as valid the Certificate of Naturalization or the Certificate of Citizenship.
To verify your age and identity, all you have to do is provide your driver’s license or your state identification card.
Step 3: Send the information to the Social Security office
Take your application and the attached documentation to the Social Security office closest to your home. You can find the right local Social Security office using the online search tool offered by the platform. You can also find the address of the local office using the phone book.
Step 4: notifies the IRS of the change from ITIN to SSN
For the change to be 100% effective, you must contact the Internal Revenue Service (IRS) to inform them that you have already obtained your Social Security card. To do so, it will suffice send a written communication by postal mail to the following address: Internal Revenue Service, National Distribution Center 1202 N. Mitsubishi Motorway Bloomington, IL 61705-6613. It is recommended that you attach a copy of the Form CP 565 that you gave to the IRS. In a short time, you will receive a letter from the IRS confirming that the change has been made.
From that moment on, the Social Security number will be your new taxpayer identification number. Therefore, all the previous documentation associated with your ITIN will be affiliated with the SSN.
Step 5: Transfer your ITIN credit to your new SSN
You can find the addresses of the credit bureaus below:
- experience. PO Box 2002. Allen, Texas 75013.
- equifax. PO Box 740241. Atlanta, Georgia 30374.
- TransUnion. PO Box 1000. Chester, Pennsylvania 19022.
The transfer of the ITIN to the SSN in your credit profile shouldn’t take more than 30-60 days And, of course, it won’t affect your credit rating.
How to Replace an ITIN with an SSN: Additional Information
What do I do if I applied for a credit card with my ITIN and now I have an SSN?
This is one of the main questions that consumers ask and the answer applies to any credit account, such as student loans, mortgage loans or loans for the purchase of motor vehicles. If you are among the hundreds of thousands of people wondering “I managed to get an SSN, what do I do?” do not worry! Even US citizens have questions about the credit scoring system and their social security number.
First, it is important that you know that to request approval of a credit instrument, whether it is a conventional credit card or a student loan, you do not need an SSN in all cases. People who were born outside of the United States have the option of obtaining an individual taxpayer identification number (ITIN) and using it as a replacement. Thanks to this number, the credit issuer or lender will be able to identify you.
Once the financial institution approves your credit, it will begin sending information to credit bureaus in the United States. That will make your ITIN reflect on any documentation, from account statements to communications sent by the bank. Of course, this will also include your credit score report, since it was opened with an ITIN number.
What information does my credit report include?
Credit bureaus are the entities in charge of compiling all the data handled by lenders, banks and other institutions in a consumer credit report. Your personal data is detailed at the top of the report, that is, your name, social security number or ITIN, address, driver’s license and date of birth.
Next, there is a section that includes a financial record. Valuable data is gathered there about how you have been managing your credits, including credit cards, loans, mortgages, among others. Reports may also refer to any other information that is public, such as bankruptcy filings, lawsuits, and arrests.
Credit rating companies (such as FICO Y VantageScore) take this data and feed it into predictive mathematical models that assign you a risk index as debtor. This score varies between 300 and 850. The higher your credit score, the more creditworthy you will be in the eyes of banks and lenders.
Remember: Credit scores fluctuate based on your usage and the use of your available credit. The rating is dynamic and factors such as on-time or late payments, hard inquiry, unpaid utility bills, etc., affect you negatively or positively, depending on the case.
Although you have been able to change your ITIN to an SSN in the credit report, your credit life start date will not undergo any change.
How to get the most out of your credit score?
The first thing to keep in mind when we talk about your credit score is that the score will depend directly on your recent financial activity, your payment history, public records, and credit utilization ratio. Other factors, such as maximum credit available and age, can also influence the score.
In order to make the most of your credit, make sure you are a good debtor. Pay your debts and bills on time, keep the consumption of your credit cards at bay and do not forget to pay the installments or the outstanding balance before the closing date.
If you are late on a payment, even for just 30 days, your credit will surely suffer.. Even if you pay the debt, the note will be reflected for a few years, but the strongest impact will be received immediately.