Banks, credit unions, and retail stores will accept an ITIN number as a form of identification to apply for credit cards and loans. You can quickly build your credit leading to greater financial freedom by getting and using a credit card.
Additionally, using your ITIN number to apply ensures that your records get reported accurately with credit reporting agencies. It can be helpful to understand who the major agencies are and how they operate. The three largest credit bureaus are TransUnion, Experian, and Equifax. These bureaus compile a person’s credit history by obtaining information from credit card companies and financial institutions. They use personal information, such as an Social Security Number (SSN), birth date, address, and name to compile a credit report. A SSN is a unique number and helps the agencies verify identity when receiving personal credit report information from creditors.
When the bureaus receive credit information about an individual with an ITIN number it is possible that they will utilize a combination of their name and address to verify their identity. Therefore, if you are building a credit history with an ITIN number, be sure to always use the same spelling and your full name each time you apply for credit. Also, each time you change your address it is best to update it with each creditor to ensure that information from your creditors is reported correctly.
ITINs are not cards like Social Security Numbers. The 9-digit ITIN number is sent to the recipient in a letter that should be saved. An ITIN is a nine-digit number that always begins with the number 9 and has a 7 or 8 in the fourth digit.
ITIN holders pay taxes
Between 1996 and 2003, more than 7.2 million ITINs were issued. More than $300 million was collected in taxes in 2001 alone from ITIN filers.
AN ITIN Number can be used for other purposes.
Opening an interest-bearing bank account. The Patriot Act includes provisions that require banks to collect information on the identity of their customers, and allows individuals to use ITINs to open interest-bearing accounts.
Securing a driver’s license. Some states have allowed the ITIN to be used instead of a SSN in order to receive a driver’s license, driver’s permit, or state identification card.