Can Non-U.S. Citizens Get a Personal Loan?

Moving to a new country is an exciting yet daunting experience. Adjusting to a new environment and managing your finances can take time. If you find yourself needing to make a large purchase, pay for a medical procedure, or repair your new home, you might wonder if a personal loan is an option for you as a non-U.S. citizen. The good news is that non-U.S. citizens can indeed get a personal loan, provided they meet the lender’s eligibility requirements.

At O1ne Mortgage, we understand the unique challenges non-U.S. citizens face when navigating the loan process in the United States. Our team is here to help you every step of the way. Call us at 213-732-3074 for any mortgage service needs.

Eligibility Requirements for Non-U.S. Citizens

While there is no restriction against non-U.S. citizens obtaining a personal loan, finding a lender willing to work with your specific situation is crucial. You may be able to secure a loan from a bank, credit union, or online lender. Approval often depends on several factors, including your credit score, credit history, loan amount, outstanding debt, and monthly income.

Lenders may also consider your immigration and residency status but cannot discriminate based on your national origin. Factors such as lawful permanent residency (if you are a green card holder) or a valid visa that extends for the entire loan term may be considered. Here are some common requirements:

• Be a resident alien or a permanent/non-permanent U.S. resident, including asylum seekers or DACA recipients.
• Hold an eligible visa, such as E-2, E-3, H-1B, J-1, L-1, or O-1.
• Have a U.S. Social Security number, a verifiable mailing address, and a valid government-issued photo ID.
• Have a qualifying credit score.
• Hold a stable job.
• Show a history of financial responsibility.

Building Credit in the U.S.

If you’ve recently moved to the U.S., you might not have a U.S.-based credit report or credit score, making it challenging to get approved for loans or other types of credit. Fortunately, some lenders do not require a U.S. credit score and may use international credit reports or non-traditional methods to assess your creditworthiness, such as on-time rent, cellphone, or cable TV payments.

However, it’s essential to start building credit in the U.S. as soon as possible. This can help you secure not only personal loans but also other types of credit, apartments, and even jobs. Here are a few ways to build credit:

• Become a credit card authorized user.
• Open a secured credit card.
• Get a credit-builder loan.
• Talk to your employer about access to financial services.

Building strong credit takes time, but using these methods or getting approved for a personal loan and making all your payments on time is a good start.

How to Apply for a Loan as a Noncitizen

When applying for a personal loan as a noncitizen, follow these steps:

Shop Around for a Lender

Not all lenders provide personal loans to noncitizens. Online personal loan lenders and platforms may be more willing to consider your application than conventional banks or credit unions. Shopping around for a lender that meets your needs and circumstances is crucial.

Gather the Necessary Documentation

Documentation requirements can vary, but you can expect to need some or all of the following:

• One or more forms of identification, such as a driver’s license or ID card.
• Copy of your passport.
• Employment and proof of income, including pay stubs, W-2s, tax returns, and employer contact information.
• Personal information, including verifiable address, phone number, email address, Social Security number, or ITIN.
• Education information, including your highest level of education and any degree earned, plus GPA.
• A copy of your visa, green card, or proof of resident status, and possibly an I-94 Arrival/Departure Record.
• Loan amount and your expected use for the funds.

Get Prequalified

Consider getting prequalified to see if you meet a lender’s eligibility requirements. Prequalification generally includes a short application and a soft credit check, which won’t affect your credit score. However, prequalification doesn’t guarantee loan approval; lenders will want to verify your information before final approval.

Find a Cosigner

Some lenders require or may accept a cosigner for a personal loan. A cosigner can increase your chances of approval by lowering the lender’s risk. Your cosigner will likely need a good credit score and be a U.S. citizen or have lived in the U.S. for at least two years. Alternatively, you may use a co-borrower if you plan to use the funds with another person.

Alternatives to Personal Loans

If you can’t find a personal loan that meets your needs, consider these alternatives:

• Loans from credit unions: Some credit unions offer loans specifically for noncitizens, such as dreamer loans, immigration loans, DACA loans, or citizen loans. These loans may have lower interest rates than many credit cards.
• One Percent for America loans: These 1% interest loans fund your DACA, citizenship, green card, or TPS application. They come with flexible payments, no hidden or late fees, and no credit requirements.
• Family or friends: Borrowing from family or friends might offer lower interest rates or no interest charges. However, failing to repay the loan can strain your relationship, and these loans aren’t reported to credit bureaus, so they won’t help build your credit.

The Bottom Line

As a non-U.S. citizen, securing the funds you need for a large expense, debt consolidation, or medical bill can be challenging. However, with some effort, you can find a lender willing to work with you. Avoid high-cost loans like payday loans that could trap you in a cycle of debt. Instead, review your finances, work on building or improving your credit, and compare personal loan offers to find the right choice for you.

At O1ne Mortgage, we are committed to helping you navigate the loan process and find the best solution for your needs. Call us at 213-732-3074 for any mortgage service needs. Our team is here to assist you every step of the way.