Federal law requires banks to implement their own risk-based verification procedures under the {"term": "cip-rule", "text": "Customer Identification Program (CIP) Rule"}. These procedures must collect your name, date of birth, address, and an identification number. While the federal rule does not mandate a US phone number, banks enforce their own internal verification checks. Because you are a non-U.S. person, you can use another approved identification to open accounts, but you must clear the bank's internal phone requirement.
“I am trying to build US credit history but I only have a Canadian phone number. I was approved for a Capital One credit card online, but I had to close the account because they couldn't verify my Canadian number to send a text message. Are there any workarounds for this, or what other US credit cards can I apply for online to build credit?”
Summary
You can still build US credit. You can bypass the phone barrier by applying for alternative credit cards designed specifically for international applicants, or by setting up a US mobile plan to clear standard bank checks.
If major issuers block your Canadian number, you can apply for credit cards that specifically target international applicants or use existing bank relationships.
Startup credit card issuers (such as MPOWER) offer alternative credit cards that specifically target international applicants. Instead of pulling a US credit history, they use their own proprietary underwriting models to determine your creditworthiness. They take into account factors like your school, employer, income, or bank account information.
If you or your family have accounts with an international bank in Canada, you may be able to open an account with the same bank in the United States. A bank like Citibank offers special accounts for newcomers and may be more willing to extend credit to you because you have already proved yourself as a customer.
Next steps
To clear the verification obstacles and establish a payment source, follow these steps.
Obtain a US-based mobile phone plan
To clear a bank's internal phone verification obstacle, you can purchase a US cell phone plan (such as Mint Mobile or US Mobile). If you want to purchase a plan without a Social Security number, you may have to make a sizable deposit.
Open a US bank account
Credit card issuers want to know you have a bank account to pay your bills. You will generally be able to open a bank account without a Social Security number by showing at least two forms of identification (such as a passport) and providing a local US address.
Legal sources
The rules and options for building US credit as a newcomer.
FDIC FIL-15-2024
Banks must implement risk-based verification procedures that collect a customer's name, date of birth, address, and identification number, which for a non-U.S. person can be an approved identification.
The CIP Rule requires a bank to implement a program that includes risk-based verification procedures that enable the bank to form a reasonable belief that it knows the true identity of its customers. These requirements exist regardless of whether the bank establishes this relationship directly with the customer or through an intermediary. These procedures must include collecting, at a minimum, the customer’s name, date of birth (for an individual), address, and identification number. A bank is required to collect the taxpayer identification number (TIN) from a customer that is a U.S. person prior to account opening or another approved identification from a non-U.S. person.
SettleKit is not a law firm. This is general information, not legal advice. Confirm your specific situation with a licensed immigration attorney.
SettleKit is not a law firm. This is general information, not legal advice. Confirm your specific situation with a licensed immigration attorney.
Related answers
Join the SettleKit newsletter
We research the hard parts of settling in the US and write articles you will not find anywhere else. Subscribe to get each new article by email.