Managing Banking Accounts and Building Credit: How Will You Build Your U.S. Financial Foundation?

In a recent blog post, we shared general personal finance tips for international nurses relocating to the U.S.  This new guide focuses on the next step: bringing your money to the U.S., opening a bank account, and building your U.S. credit history with confidence.

Think of this process as building a U.S. financial foundation step by step: first, establishing your identity; then opening banking accounts; managing your money safely; and finally building credit in the U.S.

Step 1: Establish Your Financial Identity in the U.S.

Building your U.S. financial foundation begins with obtaining one of two essential identification numbers:

·      Your Social Security Number (SSN): A SSN is a unique, 9-digit identification number given by the U.S. government to track your earnings and work history, and it is often required for jobs, taxes, and credit. It is used to identify people for work, taxes, and government services.

·      Your Individual Taxpayer Identification Number (ITIN): An Individual Taxpayer Identification Number is a number used for tax purposes for people who are not eligible for an SSN yet.

Once you have one of these identification numbers, you can begin taking the next important step in your financial journey by opening a bank account, which helps you manage your money, and then by starting to build your credit history, which helps others decide if they can trust you with money.

Step 2: Plan How You’ll Access and Transfer Your Money

Moving to the U.S. is a big step, whether you are bringing family along or are on your own. We discussed this in a recent blog post, highlighting the various factors to consider in that preparation. Building your financial foundation is a huge part of this. However, before opening a U.S. bank account, it’s important to plan how you will access your money when you first arrive. Many international nurses choose to keep their home country bank account open so they can continue accessing funds if needed.

You may also consider using international-friendly financial tools like WISE or Remitly, which allow you to transfer money between countries, hold multiple currencies, and often offer lower fees than traditional banks.

Credit cards from your home country can also be helpful for short-term expenses, though you should be mindful of foreign transaction fees.

Step 3: Open Your First U.S. Bank Account

As you move to the U.S., you can transfer funds into your new U.S. account. WorldWide HealthStaff Solutions (WWHS) partners with Advancial Credit Union, which allows many international nurses to open an account before receiving their SSN to help you get set up faster when you arrive in the U.S.

To open a bank account in the U.S., you will usually need a valid ID, such as your passport, and either an SSN or ITIN. Some banks may also ask for proof of address, and you may need a small deposit to get started.

From there, you’re ready to open a bank account, or even multiple bank accounts. Here are some of the most common questions you may have:

·      How does a checking account work?

·      Do I need a savings account?

·      What other types of U.S. banking accounts are there?

If your family comes with you to the U.S., then you may want to open additional bank accounts for them. It’s important that you know how to open a bank account in the U.S. as a foreigner.

1.     How Does a Checking Account Work?

A checking account works by helping you safely store your money and use it when you need it.

1.      You put money into the account.

2.      The bank keeps track of your balance (how much money you have).

3.      When you spend money or pay bills, the amount is debited (taken out) from your account.

4.      You can check your balance online, in a banking app, or at the bank.

This is where your employer will send your paycheck, and it allows you to pay for daily expenses like rent, groceries, and transportation. Essentially, a checking account is used for everyday expenses.

You can use a debit card, which is used similarly to a credit card; however, the money comes straight out of your checking account, write checks, or pay bills online with this account. Most international nurses start with a checking account because it helps them manage their money easily when they first arrive in the U.S.

2.     Do You Need a Savings Account?

Yes, you need a savings account if setting money aside for future needs is important to you. This can include emergencies, travel, or larger purchases. You usually do not use this account for daily spending. Instead, you keep money here and may earn a small amount of interest over time. A savings account is a good way to build healthy financial habits and prepare for future expenses.

3.     What Other Types of U.S. Banking Accounts Are There?

There is a wide range of account types you may consider based on your needs. Here are the top 5 U.S. banking accounts commonly used by international nurses and their families relocating to the U.S.:

1.      Money Market Account: A savings account that usually offers higher interest rates and may include limited check-writing or debit card access.

2.      Joint Account: A shared checking or savings bank account used by two people, such as spouses or family members, to manage household money together.

3.      Credit Card Account: Allows people to borrow money for purchases and pay it back over time, helping them build credit history in the U.S.

4.      Certificate of Deposit (CD): A savings account where money is kept in the bank for a fixed period of time in exchange for a higher interest rate.

5.      Student Account: A bank account designed for students that may offer lower fees, easier requirements, and simple money management tools.

As you become more comfortable with banking in the U.S., you can explore these options to find what works best for you and your family. Now that you understand the different types of bank accounts available, the next step is to learn how to build your credit, which is a key part of managing your finances in the United States.

Step 4: Start Building Your U.S. Credit History

Building credit in the U.S. is very important for your daily life. Your credit history is used when you apply to rent an apartment, buy a home or a car, get a loan, or apply for any type of financing. When you first arrive in the U.S., you may not have a credit history yet, which can make it harder to get approved for a regular credit card. Because of this, many international nurses start with a secured credit card to begin building their credit.

Try to avoid missing payments, exceeding your repayment capacity, or using too much of your credit limit. These mistakes can lower your credit score and make it harder to get approved in the future.

It is important to use your credit card carefully. Always pay on time, avoid spending more than you can repay, and keep your balance low. These habits will help you build a strong credit history and make it easier to reach your financial goals in the U.S.

When you use a credit card, the issuing bank reports your payments to credit bureaus, and this helps you build your credit history and increase what’s called your credit score, which is very important in the U.S. If you do not pay your credit card bill, the bank can take the money from your deposit, and it can hurt your credit history and your opportunity to apply for future credit cards, loans, or financing.

A simple way to think about it is that your credit history shows whether you pay your bills on time. In the U.S., this helps others decide if they can trust you with money. Your credit score is a number that shows how well you manage borrowed money in the U.S. It ranges from 300 to 850. In general, that range breaks down to:

·      Excellent: 750 – 850

·      Good: 700 – 749

·      Fair: 650 – 699

·      Poor: 600 – 649

·      Very Poor: 300 – 599

A higher credit score essentially means that you are more trusted to repay money, while a lower score means that the bank, or lender, may see more risk in providing you with a credit card. That said, it’s completely normal, when you’re new to the U.S., to start low or have no credit score at first. The best action you can take is to make on-time payments on your credit card to improve your credit score.

What Is a Secured Credit Card?

Also known as a secured line of credit, a secured credit card helps you build credit in the United States. When you open this card, you first deposit money into the bank. You can use it for small purchases, like groceries or gas. Each month, you should pay your bill on time and, if possible, pay the full amount. The bank reports your payments, which helps build your credit history. Over time, this can help you qualify for a regular, unsecured credit card without a deposit.

Example: If you give $300, your credit limit will usually be $300.

It’s recommended that international nurses with no credit history in the U.S. start with a secured credit card. It may take a few months to start building your credit and longer to reach a strong credit score. With consistent on-time payments, you may qualify for an unsecured credit card over time.

What Is an Unsecured Credit Card?

An unsecured credit card is the most common type of credit card in the U.S. You do not need to give a deposit to open this type of credit card. Instead, the bank gives you a credit limit based on your already existing credit score, your income, and your credit history. Of course, if you don’t have that credit score or credit history yet, you’ll likely need to open a secured credit card.

Taking the Next Step in Your Financial Foundation in the U.S.

Building your financial foundation in a new country doesn't have to be overwhelming. With the right guidance, you can set up your accounts, build credit, and feel financially confident from day one. If you're ready to work with an advisor who can guide you through the next steps, sign up with WWHS today.