Yes, contrary to what many people believe, obtaining money loans without Social Security is possible. If you want to apply for a loan but the lack of a social security number prevents you from doing so, this article is for you. Here we’ll talk about ways you can get a loan even if you don’t have a social security number. Let’s start.
- 1 Money loans without Social Security
- 2 What is the Social Security Number?
- 3 Can I get a loan without a Social Security Number?
- 4 Personal loans without Social Security Number
- 5 Personal loan with ITIN number
- 6 Reasons why banks do not lend to immigrants without SSN
Money loans without Social Security
Today, if you want to buy a house, a car, or want to pay for college, you don’t have to wait for the necessary amount or borrow money from relatives. With so many banks and lenders available in the market, you just have to fill out the loan approval forms, provide all the required documents and you are good to go. And one of the things that banks and financial institutions require at the time of application is the social security number (SSN or Social Security Number).
Don’t have Social Security? Do not worry, it is still possible for you to get loans without social security. Keep reading and we will help you get credits and money loans without social security.
What is the Social Security Number?
The US government, through the Social Security Administration (SSA) issues a 9-digit personal number. This is used to keep track of the number of years spent in the workforce and the income generated. Once a person retires, the government calculates payments based on the information on file. As you know, not everyone in the US is a citizen and resident eligible to have a Social Security number. This number is used for various purposes, including getting a job and filing taxes. The SSN is required for:
- Enroll in Medicare
- The passport application
- Certain types of public assistance programs such as unemployment benefits
- Open a bank account or apply for a loan
- Apply for a driver’s license
Can I get a loan without a Social Security Number?
Having a Social Security Number makes getting a loan considerably easier. A bank or lender can retrieve all the information needed to process the loan with a person’s Social Security Number.
This eliminates the need to fill out a plethora of forms or submit a ton of documents. However, not having an SSN can raise certain issues. But don’t worry, you can still apply for and get loans from a bank or lender.
Personal loans without Social Security Number
If you pay federal taxes, you can apply for an ITIN. Follow these 4 steps as mentioned below:
- Fill out the W7 form.
- Includes proof of identification (country identification card, driver’s license, medical records) as approved by the Internal Revenue Service (IRS).
- File your tax return
- Submit everything (Form W7, tax return, and any other schedules) to the IRS office.
- This entire process takes 4-6 weeks to complete once all paperwork is complete.
Personal loan with ITIN number
As mentioned above, if you don’t have a social security number, you can still get a loan with an ITIN number.
What is the ITIN number?
The ITIN number is the individual taxpayer identification number. It is a US tax processing number issued by the Internal Revenue Service (IRS).
Can I get a loan with an ITIN number?
Once you have an ITIN number, you can apply for a personal loan or a credit card depending on your needs. A bank or lender looks at the following before lending to you:
- credit score
- outstanding loan
- Debt to Income Ratio
- The stability of your career
- An ITIN number gives them a clear idea of the aforementioned things related to you. In this way, it facilitates obtaining credit.
An important fact to keep in mind is that if you qualify for a Social Security number in the future, you can transfer the credit you have accumulated in your ITIN to your SSN.
Reasons why banks do not lend to immigrants without SSN
If you are an immigrant without a social security number, many banks may have turned you down when you approached them to open an account or borrow a sum to advance your business or buy a car. There are important reasons why a bank refuses to grant a loan.
- No credit history: Since most immigrants do not have an SSN, it becomes very difficult to determine their credit history. Credit history determines whether a person is trustworthy enough to receive a loan, and if so, how much they can get.
- Unreliability: If a borrower is a national citizen, in this case from the United States, it is easier to catch them when the bank loan defaults. However, if a person is a foreign national and leaves the US before paying off the debt, there is no possible way to repay the money.
- There is no co-signer: In the absence of a credit history, banks require a co-signer to co-opt the loan with the borrower. This is to ensure that in the event of a default, the banks can recover the sum from the co-signer.
- Incomplete paperwork: Most of the time immigrants lack one or most of the documents needed to process the loan, including a minimum credit score.