How to get a loan as an immigrant
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- Millions of immigrants and informal workers are unable to borrow from regular moneylenders.
- Traditional lenders may reject applicants who do not have a Social Security number or credit history.
- Some lenders address the financial gap by offering small and large size loans to immigrants.
without a Social security credit number and history, immigrants often find it difficult to access traditional financial products. Lenders may avoid lending to immigrants because they are unsure of the applicant’s employment status and ability to make payments.
Nearly one in five consumers lacks any credit history with major rating agencies, says Maddie Woodell, a director of communications in San Francisco. Mission Asset FundIt is a non-profit financial organization and advocate for low-income communities. She says this makes it almost impossible to get affordable bank loans.
While this may sound bleak for immigrants looking to borrow money, there are options. Certain lenders and products are available to help non-US citizens obtain a loan for a car, home, business, or college. Here’s where to look when you start looking for a loan.
What are some personal loan lenders that accept non-US immigrants?
In addition to the requirements below, eligibility varies by lender and approval depends on a number of factors, including your financial history, credit score, expenses, and monthly income.
SoFi offers student loans, mortgages, and personal loans. SoFi personal loans range from $5,000 to $100,000. to qualify, you must be at least 18 years of age (or older depending on the state you live in), be a US citizen, eligible permanent resident, or non-permanent resident with valid documentation showing your immigration status. You must be employed, have income from other sources, or have an offer of employment commencing within 90 days.
Personal upgrade loans range from $1,000 to $50,000 and borrowers can use them for many purposes. to be eligible, you must be at least 18 years old (or 19 in some states) and a US citizen or permanent resident, or live in the United States on a valid visa. You will also need a bank account and a valid email address.
- Mission Asset Fund
The Mission Asset Fund offers interest-free loans to build credit. It immigration loans Helping people cover citizenship expenses. You must be at least 18 years of age and ready to file your application with USCIS for citizenship, DACA, a green card, petition for immigrant relative, temporary protected status, or a U visa. You also need a checking account or photo ID issued by government, social security number, or individual tax identification number and income and use no more than half of your monthly income for bills and debts.
MAF also offers loans of up to $2,400 through lending circles. MAF reports repayments to the major credit bureaus to help customers establish credit.
- One percent for America
One percent for America offers 1% interest loans For immigrants seeking temporary protected status, DACA, green card or citizenship. You’ll need an email address, mobile phone number, bank account, social security number, or ITIN, and to know the exact amount of your application fee.
What information will I need to prepare to apply for a loan?
Organizing ahead of time will help ease the process. Some of what you will need may include, but not be limited to:
- Green card / visa / proof of residence
- Work permit form
- Know your credit score (many places require a minimum of 600)
- Identification card
- Address proof
- Income verification or job offer
- personal information
- Education history/school records
- List your monthly expenses
- Proof that you paid your rent, utilities, or other bill payments on time
- Tax return
If I am not a US citizen, can I get student loans?
While DACA recipients are excluded from federal student aid, many non-US citizens are eligible. The Department of Education details qualification requirements in its statements Comprehensive FAQ.
Regardless of whether you qualify for federal student aid, non-citizens may be eligible for private loans, financial aid from the state, and direct aid from the college or university they plan to attend. Check with your school’s financial aid office about the resources available to you, including grants and scholarships.
However, many lenders avoid making student loans to foreign-born students unless they have a Social Security number and status that allows them to pursue legal employment, says Renata Castro, an immigration attorney and founder of Castro Law Group. As a result, it recommends that international students also consider using foreign lines of credit.
What are the loan alternatives?
If you can’t get a loan, ask friends, family, or local organizations for help. You might also consider getting a credit card or salary advance, but be careful to protect your money. Make sure you understand the interest rates and that you can pay back what you borrow. If you can’t borrow what you need, you may be able to earn it by working short-term in the gig economy.
Regardless of your immigration status, if you need money, there are options available.