ITIN personal loans are ideal for immigrants who do not yet have a social security number. This article explains everything you need to know about this type of loan so you can apply for it quickly.

Personal loans, although they include higher rates, are usually a good option when we need money to cover some one-time expenses. The application process is usually quite simple, you just have to fill out the corresponding forms and provide the documents requested by the financial institution.

One of the most important requirement to be eligible for personal loan is the Social Security Number (SSN). If you don’t have it, don’t worry, you can resort to personal loans with ITIN

The Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) to ensure that individuals, including undocumented immigrants, pay taxes even if they do not have a Social Security number, regardless of their immigration status.

The ITIN was created by the IRS in July 1996 to allow foreign nationals and others who are not eligible for a Social Security number (SSN) to comply with U.S. tax laws. It is nine digits long and always begins with the number 9 and has a 7 or 8 in the fourth digit; for example, 9XX-7X-XXXXXX.

With the ITIN, undocumented immigrants without a social security number can file tax returns to comply with federal and state tax laws. In addition, they can open a bank account, create business entities to generate income in the U.S., apply for credit and personal loans with ITIN, among other things.

What is the ITIN used for?

• To file tax returns
• Open bank accounts in select financial institutions
• Create business entities
• Apply for loans
• Obtain a driver’s license

Who provides personal loan with ITIN?

Here are some of the institutions you should turn to if you need to apply for personal loans with an ITIN.

1. Oportun

Oportun offers loans to applicants who have either a social security number or an ITIN. The amounts you can apply for are not very high (max. $9,000) and the rates they apply are usually high compared to other entities, they can reach up to 67%.

2. Aura

Aura’s loans are very focused on the Latino community. Amounts may not exceed $4,000. However, one of the characteristics in which Aura stands out is its low interest rates. Its maximum rate is 36% (well below the rates of many competitors). If you want to start building credit in the United States, this lender is a good choice. You can apply for their loans with ITIN, passport, or SSN.

Check out: Credit cards you can get on ITIN

3. Ace Cash Express

Ace Cash Express is one of the largest lenders in the United States. Applicants with ITIN have access to credit cards, loans and other services from this company. Amounts available for personal loans range from $100 to $4,000. The interest rates charged by Ace Cash Express are quite high, potentially approaching 400%.

4. Wells Fargo

If you have already started building your credit in the USA you can knock on Wells Fargo’s doors. Because of its loan amounts and low interest rates, this bank is ideal for debt consolidation. Interest rates range from 5.24% to 24.49%. To obtain a personal loan at Wells Fargo you must have a credit score of approximately 660. You can apply online, by calling Wells Fargo by phone or by visiting any of its branches in the United States.

5. Upgrade

Upgrade is one of the best destination to apply for personal loans with ITIN. The company provides funding ranging from $1,000 to $50,000. In many cases, you can receive the funds within 24 hours. The loan terms range from 24 to 48 months, giving you flexibility in repaying the loan. With competitive interest rates starting at 8.49%, Upgrade is an attractive option for eligible applicants. While a minimum credit score of 600 is usually required, individuals with ITINs can also apply, making Upgrade a reliable choice for those with fair to good credit ratings.

6. Avant

Avant specializes in serving borrowers who require loans ranging from $2,000 to $35,000. They are renowned for their speedy loan processing and disbursal, which can be highly advantageous. While a credit score of 580 is typically necessary, Avant also accepts an ITIN instead of an SSN. This makes Avant an exceptional option for individuals with moderate credit, particularly if they want to avoid additional credit inquiries.

7. BestEgg

Similar to other lenders on this list, BestEgg offers loans with soft credit checks for individuals with ITINs. They provide financing options up to $35,000, with interest rates ranging from 5.99% to 29.99%. BestEgg is well-known for its straightforward and speedy application process, making it a compelling choice for borrowers of all types.

Benefits of Getting Personal Loan with ITIN

If you have an ITIN number, you can qualify for a personal loan.

1. Buying a Car: Traditional lenders in the U.S. typically require secured loans, such as an auto loan. However, if you don’t have enough cash saved up for the down payment, you can use a personal loan to finance it. This allows you to buy the car you need, even if you struggle to get a car loan approved without an SSN.
2. Rental Deposit: Renting property in the U.S. can be expensive, and landlords often require a substantial deposit. If you’re short on cash for the rental deposit, you can get a personal loan with your ITIN number to cover the cost. This way, you won’t miss out on a good rental opportunity due to a lack of funds.
3. Relocating Your Family: Moving can be costly, especially if it’s on short notice. If you need to cover the expenses of relocating your family, such as hiring a removal company or paying for transportation, a personal loan with your ITIN number can help bridge the financial gap. This way, you can seize new job opportunities without worrying about immediate cash flow issues.
4. Debt consolidation: If you consolidate your old debts and high-interest credit cards by using a personal loan with a lower interest rate, you can potentially save money, especially if there are no origination fees involved.
5. Medical expenses: Personal loan can be considered as a means to alleviate your medical debt. But remember that, before deciding to take out a personal loan, it is advisable to negotiate your medical bills and explore the possibility of a no-interest installment agreement.
6. Home improvement: A personal loan can be utilized for various purposes such as remodeling projects, home improvements, or essential repairs, such as installing new pipes or rewiring your house.
7. Purchase essential items: If you find yourself lacking the immediate funds to purchase essential items like a new computer, appliance, mattress, or any other necessary item, a personal loan can provide the financial support needed to make the purchase. With the option to repay the loan gradually through manageable installments, you can acquire the item you need while spreading out the cost over time.

In all of these scenarios, a personal loan with an ITIN number can provide the necessary funds to overcome financial challenges and achieve your goals. Remember that, personal loans have a wide range of uses, but they are not suitable or can be used for anything. They should not be utilized for college expenses, down payments, or investments.

Requirements for personal loans with ITIN

Although this will depend on each entity, some of the most frequently requested requirements for personal loans with ITIN are the following:

• Individual Tax Identification Number (ITIN)
• A verifiable home address
• Proof of employment
• Electricity, water and/or telephone bills in your name.

How to obtain an ITIN – Documents Required

If you want to apply for your ITIN, it is important to know that there are IRS agents and taxpayer assistance centers available to help people apply.

The steps to apply are as follows:

1. Complete Form W7.
2. Include proof of identification and proof of “foreign status” (The IRS has issued a list of 13 documents that will be accepted for this purpose).
3. File tax return
4. Submit all requirements (W7 form, identification, tax return and any attachments) to the IRS office.

Many people believe that in the United States foreigners without a social security number (SSN) do not have access to loans or credit and therefore cannot build their credit history. This is not true, foreigners who do not have a social security number but who apply for an Individual Tax Identification Number (ITIN) can apply for loans, in fact there are several alternatives to do so. Obviously they have limitations, but they can start building credit in the USA even if they do not have an SSN.

If you want to apply for personal loans with ITIN your range of possibilities is reduced as there are fewer lenders available. However, this does not mean that there are no options for you.

Many banks do not offer personal loans to people who do not have SSNs. Therefore, applicants are forced to turn to finance companies.

Check out: 13 most asked questions on ITIN

Related reading: Guide on ITIN

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].