There’s a good reason why a May 2021 Federal Reserve report on the economic well-being of US households revealed that 83 percent of US consumers had a minimum of one credit card in 2020.
Having a credit card shows you’ve been deemed credit-worthy, which is crucial in the USA’s credit card country, where ‘plastic payments’ are widespread. Credit worthiness is even more important for immigrants who don’t yet have a credit history in the States.
Here are the best credit cards for US immigrants, why you need a credit history, plus how to get a credit card as a “blank page.”
Reasons Why You Need a Credit History
As a US immigrant, you typically lack a credit history in the States, but you need one badly. If you haven’t established creditworthiness, you can’t sign up with an energy supplier or get a phone, not to mention a loan or car, and, you’ve guessed it – a credit card.
To get out of this peculiar predicament that US immigrants are doomed to, American Express comes in handy.
American Express Credit Cards
American Express cards are an excellent option because you can get them before moving to the States and have them conveniently rewritten after settling down in the USA. That way, you already have a credit card and can start building your credit history. If you’re from Australia, Canada, India, Mexico, or the UK, you can even transfer your credit score to the United States.
And because of an American Express/domestic card companies’ partnership, you’re in luck and can get a US credit card more easily if you’re a US immigrant from one of these countries:
Australia
Brazil
Canada
Dominican Republic
India
Kenya
Mexico
Nigeria
United Kingdom
American Express offers you nine credit cards, and these are the most popular ones:
American Express Card
American Express Gold Card
American Express Platinum Card
American Express (Green) Card
The American Express Card, or American Express Green Card, is the traditional entry-level card, appropriate especially for credit card newcomers with a low annual turnover. It costs €5 per month, but the amount is waived once you generate a yearly turnover of at least €9,000.
For an extra €30 each year, you can join American Express’s Membership Rewards program. You can redeem the loyalty program’s points for expensive rewards like flying in first class. In addition, as a member of the Membership Rewards program, you’re covered for flight and baggage delays by insurance.
If you travel frequently, however, you can expect some additional expenses as a holder of the green American Express credit card. One disadvantage is the 1.99 percent foreign currency fee, levied whenever a payment is made in a currency other than the cardholder’s own. Also, withdrawing cash is subject to a fee of four percent of the turnover. An additional card is included.
American Express Gold Card
The American Express Gold Card comes with a slew of perks. As a cardholder, you will earn points for every dollar you spend, which you can then use to redeem for a variety of appealing prizes, such as free flights with British Airways, SAS, or Singapore Airlines. You’ll receive a €144 bonus if you generate a turnover of at least €3,000 on your American Express Gold Card in the first six months after getting the card.
The foreign currency tax of 1.99 percent of the turnover, plus the fee for cash withdrawals of 4% of the turnover, are the two most significant drawbacks of the American Express Gold Card.
But there are plenty of advantages, too. The extensive insurance coverage, which includes travel cancelation insurance and overseas travel health insurance, and insurance coverage in the event of airline or baggage delays, is another significant benefit for regular travelers. The American Express Gold Card costs €12 per month, and one additional card is included.
Mainly because of the included travel insurance and loyalty rewards, the American Express Gold Card is an excellent fit for frequent flyers.
American Express Platinum Card
At €55 per month, the American Express Platinum Card is the most expensive American Express credit card. It also comes with a complete package, which is particularly handy for frequent flyers spending a lot of money every year. On top of the €250 bonus, you’ll receive a €200 annual travel credit for flights and hotels, plus a €200 yearly credit for the Sixt Ride cab and limousine service.
American Express Platinum Card customers have to pay a foreign currency tax of 1.99 percent and a cash withdrawal fee of four percent of the turnover.
But if you generate a turnover of at least €6,000 in the first six months after receiving your Platinum Card, American Express will credit €100 to your account.
The American Express Platinum Card grants you access to the American Express Global Lounge Collection, which comprises more than 1,200 airport lounges in over 130 countries.
You also get discounts at numerous hotel chains and car rental businesses, plus comprehensive insurance coverage on your travels. You’re covered for travel cancelation, flight or baggage delays and health-related issues while abroad, and rental car insurance plus accident insurance are included, too. Up to seven cards are included.
Do you have any questions about moving to the States? If so, we can highly recommend Dream of USA’s services. You’ll find their immigration experts here.