Loans for Immigrants in the USA and UK: 2026 Newcomer Guide

Newcomer reviewing loan documents and a passport at a desk with a laptop

Last reviewed: October 1, 2026

Short answer: Immigrants and newcomers can borrow in the USA and the UK, but usually not on the best terms in the first months, because a credit history built abroad does not follow you. Lenders look at four things: who you are (passport, plus a Social Security number or ITIN in the US), your right to stay and for how long, your income, and your local credit record. The safest first steps are a bank or credit union account, a secured credit card or credit-builder loan, and, if you must borrow, a small loan from a credit union or a community lender (a CDFI in the US).

No honest lender can promise "easy" or "guaranteed" approval. The US Federal Trade Commission lists guaranteed approval and upfront fees as signs of an advance-fee loan scam, and the UK Financial Conduct Authority gives the same warning about loan fee fraud. Building a usable credit record takes months, not days, and most newcomers get better offers after 6 to 12 months of on-time payments.

This guide explains why newcomers start with no credit file, what lenders may and may not consider, which documents you need, the realistic borrowing options in the US, how the UK and Canada differ, what borrowing really costs, and which offers to avoid. It draws on the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the IRS, the FDIC, the National Credit Union Administration (NCUA), the CDFI Fund, Fannie Mae, the UK Financial Conduct Authority (FCA), GOV.UK and the Financial Consumer Agency of Canada (FCAC). We do not recommend any lender, and we do not show real rates.

This article is general information, not financial, legal or immigration advice. Lender policies differ, and rules change. For questions about your immigration status, speak to a licensed immigration attorney or an accredited representative.

In this guide

Why newcomers are "credit invisible"
What lenders can and cannot consider
Documents lenders ask for, by status
US borrowing options for newcomers compared
Mortgages and car loans for non-permanent residents
Can you use your foreign credit history?
Building US credit step by step
What a loan costs: APR, fees and a worked example
What to avoid
Your rights if you are denied
Sending money home vs borrowing
Borrowing as a newcomer in the UK
A short note on Canada
Scams aimed at immigrants
A 12-month plan
Checklist before you sign
FAQ
Bottom line
Sources

Why newcomers are "credit invisible"

Newcomers are "credit invisible" because credit reporting is national: the US credit bureaus hold records of US accounts only, so you arrive with an empty file even if you repaid loans perfectly for twenty years at home. With no file, lenders' automated systems cannot produce a score, and many simply decline.

"Credit invisible" is the CFPB's term for a person with no credit history at any of the three nationwide credit reporting companies (Equifax, Experian and TransUnion). A CFPB study found that about 26 million Americans, roughly one adult in ten, were credit invisible, and that millions more had files too thin or too old to score. New arrivals are not the only group affected, but almost every new arrival starts there.

The same is true in other countries. Experian's UK guidance says plainly that when you move abroad your credit data is not transferred. Canada's FCAC notes that the two main Canadian credit bureaus collect information about credit activity in Canada.

What "no credit" is and is not

No credit is not bad credit. You have no late payments or defaults on file. You have nothing on file. Many lenders treat the two alike at first, but no credit is much quicker to fix.
A bank account is not a credit account. The CFPB notes that debit cards, cash and prepaid cards do not build a credit history, because they do not show that you can repay borrowed money.
Income is not credit history. A good salary helps you qualify, but it does not replace a repayment record.

For how scores are calculated once you have a file, see our guide on what a credit score is and how it is calculated. This article focuses on getting from zero to a first fair loan.

What lenders can and cannot consider

In the US, a lender may not discriminate against you because of your national origin, but it may consider your immigration status when that is relevant to whether and how the loan will be repaid. Those are two different things, and the line between them matters.

The Equal Credit Opportunity Act and Regulation B

The Equal Credit Opportunity Act (ECOA) and its implementing rule, Regulation B, bar creditors from discriminating in any part of a credit transaction on bases that include race, color, religion, national origin, sex, marital status and age. National origin covers things like the country you or your family come from, your ethnicity or your accent.

Immigration status is treated differently. Regulation B, section 1002.6(b)(7), says a creditor "may consider the applicant's immigration status or status as a permanent resident of the United States, and any additional information that may be necessary to ascertain the creditor's rights and remedies regarding repayment." The official commentary explains that status and ties to the community, such as employment and continued residence, can bear on a creditor's ability to obtain repayment, so a creditor may distinguish between a noncitizen who is a long-time permanent resident and one who is in the country temporarily on a visa. It adds that a denial on the ground that an applicant is not a US citizen is not automatically national origin discrimination.

The 2023 statement and its 2026 withdrawal

In October 2023 the CFPB and the Department of Justice issued a joint statement warning creditors that overly broad use of immigration status could breach fair lending law. On January 12, 2026, the two agencies withdrew that statement. The withdrawal announcement says that ECOA and Regulation B "permit creditors to consider pertinent elements of credit-worthiness and information necessary to protect creditor rights and remedies, including a borrower's immigration or citizenship status."

The practical message: a lender may have a policy on visa type or remaining visa length, and policies differ widely. A "no" from one lender is not a "no" from all. What the law still prohibits is treating you worse because of where you are from.

A US lender generally may	A US lender may not
Ask about your immigration or permanent resident status	Refuse or price a loan because of your country of origin, ethnicity or accent
Ask how long your visa or work authorization lasts and compare it with the loan term	Apply stricter document rules only to applicants of one nationality
Require a Social Security number or ITIN and verify your identity	Discourage you from applying on a prohibited basis
Decline because you have no US credit record, if it applies that rule to everyone	Refuse to count part-time, benefit or similar income automatically, without looking at how reliable it is

One more point from Regulation B helps newcomers. If a creditor considers credit history, you can ask it to consider information that is not on your credit report, as long as it is the kind of information the creditor normally looks at. That does not force a lender to accept a foreign credit report, but it is a reason to offer evidence of on-time rent and bills.

Documents lenders ask for, by status

Lenders ask newcomers for the same four proofs as everyone else, identity, a taxpayer number, income and address, plus evidence of immigration status and how long it lasts. Having these ready before you apply is the easiest way to avoid a decline for "unable to verify."

SSN vs ITIN

A Social Security number (SSN) is issued by the Social Security Administration to citizens, permanent residents and noncitizens who are authorized to work. Most mainstream lenders build their application systems around it.

An Individual Taxpayer Identification Number (ITIN) is, in the IRS's words, a nine-digit number the IRS issues if you need a US taxpayer identification number for federal tax purposes but are not eligible for an SSN. You apply with Form W-7, normally together with a federal tax return. The IRS is clear about its limits. An ITIN does not:

authorize you to work in the US;
provide or change immigration status;
qualify you for Social Security benefits;
serve as identification outside the federal tax system.

ITINs can also expire and need renewing. Even so, an ITIN is useful. The FDIC notes that many banks let non-citizens open an account and may accept a foreign passport, a consular ID or an ITIN. Some credit unions, community lenders and card issuers accept an ITIN for credit as well. Policies vary, so ask before you apply.

Your situation	Identity and tax number	Status documents lenders commonly ask for	What lenders tend to focus on
Lawful permanent resident (green card)	Passport or state ID; SSN	Permanent resident card and its expiry date	Usually treated like citizens; the main hurdle is the thin credit file
Work visa holder	Passport; SSN	Visa, I-94 record, approval notice or employment authorization	Whether your authorized stay is longer than the loan term; employer and income stability
International student	Passport; SSN if you have authorized work, otherwise ITIN in some cases	Visa and school documents	Limited income; a co-signer is often required
Refugee or asylee	SSN; government-issued documents	Proof of status or employment authorization	Short work history in the US; community lenders are often the most flexible
ITIN holder without an SSN	Foreign passport or consular ID; ITIN letter	Varies by lender; some ask for none beyond identity and tax records	Tax returns, bank statements and length of time at your address and job

This table is a general guide, not a statement of any lender's policy.

Income and address

Income: recent pay stubs, an employment contract or offer letter, tax returns, and bank statements showing deposits. Self-employed newcomers usually need tax returns.
Address: a lease, a utility bill or a bank statement in your name.
Consistency: make sure your name is spelled the same way on every document.

Never lie about status, income or how long you plan to stay. A false statement on a loan application can be a crime and can also harm future immigration applications.

US borrowing options for newcomers compared

The safest US options for a newcomer are, in rough order, credit-building products that cost little (secured cards and credit-builder loans), then small loans from credit unions and community lenders, then a co-signed or secured loan. High-cost lenders that advertise to people with no credit should come last, if at all.

Option	How it works	Who it suits	Main caution
Credit union loan	You join a member-owned cooperative, then apply; many look at your whole situation	Newcomers with steady income and an account history at the credit union	You must qualify for membership first
Payday alternative loan (PAL)	Small, short loan from a federal credit union under NCUA rules	Members who need a few hundred dollars quickly	Small amounts only; a waiting period after joining may apply
CDFI loan	Mission-driven community lender certified by the US Treasury's CDFI Fund	People with thin files, low incomes or ITINs	Not available everywhere; amounts can be modest
ITIN loan	Personal, auto or home loan underwritten with an ITIN instead of an SSN	Tax filers without an SSN	Fewer lenders, so compare APRs carefully
Secured loan (share- or savings-secured)	You borrow against your own savings held at the lender	Anyone with some savings and no credit	Your savings are locked until you repay
Credit-builder loan	The loan amount sits in a locked account while you make payments; you get it at the end	People who need a record, not cash now	No money up front; missed payments hurt
Secured credit card	A cash deposit sets your credit limit	Almost every newcomer	Fees on some cards; pay in full every month
Co-signed or joint loan	A person with US credit shares or guarantees the debt	Newcomers with a willing relative or friend	The co-signer is fully liable if you do not pay
Lending circle	A group pays in each month and members take turns receiving the pot	People with community ties	Only formal programs report to credit bureaus
Specialized newcomer lender	Lender that underwrites using education, job offer, visa or foreign credit data	Skilled workers and graduates with strong income	Rates and fees vary widely; verify the license

Credit unions and payday alternative loans

Credit unions are not-for-profit and owned by their members. You join through where you live, work or worship, or through an association.

Federal credit unions can also offer payday alternative loans. According to the NCUA's consumer site, a PAL is a loan of $200 to $1,000 with a term of one to six months. The application fee can be no more than $20, the rate is capped at 28% APR, loans cannot be rolled over, and a borrower can receive up to three PALs in a six-month period. You must have been a member for at least one month. A second version, PALs II, adopted in 2019, gives credit unions more flexibility on amounts and terms. Not every credit union offers PALs, so ask.

CDFIs

The CDFI Fund describes a community development financial institution as a specialized organization that provides financial services in low-income communities and to people who lack access to financing. CDFIs include community development banks, credit unions and loan funds. Many run small-dollar and credit-builder loan programs for people a mainstream bank would decline. A local immigrant services nonprofit can often point you to one.

ITIN loans

"ITIN loan" is not a legal category. It simply means a lender accepts an ITIN in place of an SSN and relies more on tax returns and bank statements. Prices vary, so get more than one quote and compare the APR, not the monthly payment.

Secured loans, credit-builder loans and secured cards

These three products share one idea: your own money reduces the lender's risk, so approval does not depend on a credit score.

Share-secured loan. You borrow against your savings. The interest rate is usually low because the lender holds your deposit.
Credit-builder loan. The CFPB describes the usual design: the lender places an amount, generally $300 to $1,000, in a locked account, and you make payments over 6 to 24 months. Payments are reported to the credit bureaus, and you receive the money at the end. A CFPB study found these loans helped people with no existing debt gain a score, but people already juggling other debts sometimes ended up worse off.
Secured credit card. You put down a deposit, for example $500, and can spend up to that amount. Our secured credit cards guide covers deposits, fees and graduating to a regular card.

Co-signers and joint loans

A co-signer with good US credit can get you approved sooner and at a lower rate. It is a serious favor. The CFPB explains that if you cannot make your payments, your co-signer is responsible for repaying the loan, and missed payments can damage both credit records. Agree in advance what happens if you lose your job or leave the country.

Lending circles and employer loans

Rotating savings groups exist in many cultures under names such as tanda, susu or hui. Informal circles build savings but leave no trace on a credit report. Some nonprofits run formal lending circles that report each payment to the credit bureaus. Ask whether the program reports to all three.

Some employers offer payroll advances or small loans repaid from wages. These can be cheap, but check what happens if you leave the job.

Specialized newcomer lenders

A small number of lenders focus on recent arrivals or visa holders and use information such as your degree, job offer, salary or home-country credit record. Treat them like any other lender: check the state license and compare the APR with a credit union quote. For how ordinary unsecured loans are priced and compared, see our guide to personal loans.

Mortgages and car loans for non-permanent residents

Non-citizens can get mortgages and car loans in the US, but program rules and lender policies on residency status differ, and some have tightened recently. Always ask a lender which programs it offers for your exact status before you pay for anything.

Mortgages

Fannie Mae, one of the two large buyers of conventional US mortgages, states in its Selling Guide that it purchases mortgages made to non-US citizens who are lawful permanent or non-permanent residents of the United States under the same terms that are available to US citizens. The lender must determine the borrower's status using documentation it considers appropriate, and it warrants that the borrower is legally present.

In practice the usual tests still apply: credit history, income, down payment and debt levels. A thin credit file is often the real obstacle, and many lenders want to see that your work authorization is likely to continue.

Government-backed programs set their own residency rules. The Federal Housing Administration revised its residency requirements in 2025, so do not rely on older articles that say FHA loans are open to non-permanent residents. Check HUD's current guidance or ask a HUD-approved housing counselor.

Some banks and credit unions also offer ITIN mortgages that they keep on their own books. Expect larger down payments and more paperwork.

Car loans

Car loans are secured by the vehicle, so they are often the first sizable loan a newcomer can get. Three cautions apply:

Arrange financing before you visit the dealer. A quote from a credit union or bank gives you a number to compare with the dealer's offer.
Watch the loan term against your visa. Some lenders will not lend beyond your authorized stay.
Be careful with "buy here, pay here" lots. The CFPB warns that these dealers often report only negative payment information, so you may pay a high rate without building credit.

Can you use your foreign credit history?

Usually not directly, but sometimes indirectly. US, UK and Canadian credit bureaus do not import your home-country file automatically, and most lenders' systems cannot read it. A few lenders, however, will consider it if you supply it.

Cross-border credit report services. Some companies, working with credit bureaus in selected countries, translate a foreign credit file into a report or score that a participating lender can use. Coverage is limited to certain countries and certain lenders, and you must give consent. It does not create a US credit file. It only helps with that one application.
Manual review. Canada's FCAC notes that some lenders may look at your credit history from another country, and that you may need to provide your foreign credit report and meet a bank officer. Smaller US lenders and credit unions may do something similar.

Before you leave your home country, download your credit report there and keep a reference letter from your bank. It may help with a manual review.

Building US credit step by step

You build US credit by opening at least one account that reports to the three nationwide credit bureaus and paying it on time every month. Expect a first score after roughly six months of reported activity, and noticeably better loan offers after about a year.

Get your number. Apply for an SSN if you are eligible, or an ITIN if you are not and have a tax filing need.
Open a checking and savings account. The FDIC advises bringing identification and your SSN or ITIN. Deposits at FDIC-insured banks are insured to at least $250,000 per depositor, per bank, and that protection does not depend on citizenship.
Join a credit union if one is open to you. Membership time counts for products such as PALs.
Open one credit-building product. The CFPB lists secured credit cards, credit-builder loans and store cards as common starting points. Confirm that the lender reports to all three bureaus.
Use it lightly and pay in full. Put one small regular bill on the card and set automatic payment for the full balance.
Check your reports. You can get free reports at AnnualCreditReport.com. The CFPB says checking your own report does not hurt your score. Look for misspelled names and mixed files, which are common with non-English names.
Add a second account after six months or so, such as a credit-builder loan if you started with a card. Do not apply for many accounts at once.
Only then apply for an unsecured loan, and only if you need one.

Time since arrival	What is realistic	What to do
Month 0 to 1	No file, no score	SSN or ITIN, bank account, proof of address
Month 1 to 3	File begins once an account reports	Secured card or credit-builder loan; join a credit union
Month 6 or so	A first score usually becomes possible	Check reports; keep balances low; no missed payments
Month 6 to 12	Thin but positive file	Ask about graduating the secured card; add one more account if useful
Month 12 and after	Mainstream offers become more likely	Compare loan quotes; avoid high-cost lenders you no longer need

These are typical patterns, not promises. Scoring models differ, and a single missed payment early on can set you back for a long time.

What a loan costs: APR, fees and a worked example

The cost of a loan is best compared with the annual percentage rate (APR), which combines interest and most mandatory fees into one yearly figure. For newcomers, the gap between a fair APR and a high-cost APR can be thousands of dollars on the same amount borrowed.

The costs to look for

Interest rate and APR. US lenders must disclose the APR before you sign. Compare APRs across offers with the same term.
Origination or application fee. Often deducted from the money you receive, so you get less than you borrow.
Late fees and returned-payment fees.
Prepayment penalty. Check whether you can repay early without a charge. This matters if you might leave the country.
Total of payments. The full amount you will pay over the life of the loan.

Illustrative example (fictional numbers)

The following example is fictional and for illustration only. The rates are not real offers and are not typical of any named lender. Suppose Amara, a newcomer, needs $3,000 for a rental deposit and furniture. She has two offers, both repaid in 24 equal monthly payments with no fees.

Illustrative item	Offer A: credit union loan	Offer B: high-cost installment loan
Amount borrowed	$3,000	$3,000
APR	18%	160%
Term	24 months	24 months
Monthly payment	About $149.77	About $420.87
Total repaid	About $3,594	About $10,101
Total interest	About $594	About $7,101

With Offer B, Amara pays about $271 more every month and about $6,506 more in total, for the same $3,000. She would repay more than three times what she borrowed.

The lesson is not that every credit union charges 18% or that every online lender charges 160%. It is that you cannot judge a loan until you know the APR, the term and the total of payments. If Offer B is the only loan available today, it is often cheaper to borrow less or wait.

What to avoid

Avoid any loan that is sold on speed and certainty instead of price: payday loans, car title loans, high-cost installment loans, and anything that asks for money before you receive the loan. These products are marketed heavily to people with no credit history, including newcomers.

Payday loans

The CFPB describes payday loans as generally $500 or less and usually due in a single payment on your next payday, typically two to four weeks away. It gives this example: a two-week loan with a fee of $15 per $100 borrowed equates to an APR of almost 400 percent. Payday loans also generally do not build your credit history, since they are typically not reported to the nationwide credit bureaus.

Car title loans

The FTC says title loans typically last 15 or 30 days and often carry monthly finance fees as high as 25%, which is an APR of about 300%. If you cannot repay, the lender can repossess your vehicle, even if you have been making partial payments. For a newcomer who needs the car to get to work, that risk is severe.

"Guaranteed approval" and advance-fee loans

The FTC's guidance on advance-fee loans is direct. Its warning signs include ads that say "Bad credit? No problem" or promise guaranteed approval, and any demand that you pay a fee for "insurance," "processing" or "paperwork" before you get the money. The FTC says legitimate lenders do not promise you a loan without knowing your credit history and then demand payment first. It also notes that, under the Telemarketing Sales Rule, it is illegal for telemarketers to promise you a loan and ask you to pay for it before they deliver.

Notario fraud

In many Latin American countries a "notario" is a lawyer. In the US, a notary public is not. The FTC warns that only attorneys and representatives accredited by the US Department of Justice who work for a recognized organization can give immigration legal advice. Dishonest "notarios" charge large fees for forms that are free from US Citizenship and Immigration Services. Never borrow to pay such a person, never sign blank forms, and never leave your original documents with them.

Threats about your immigration status

No lender or debt collector can have you arrested or deported for owing money. The FTC explains that debt collectors cannot pretend to be from the government and cannot tell you that you will be arrested or threaten legal action that is not true. In 2021 the CFPB and three state attorneys general sued a company that sold services to detained immigrants, alleging that it falsely threatened consumers, including with deportation, to make them pay. If anyone uses your status to pressure you over a debt, keep the messages and report it to the CFPB, the FTC or your state attorney general.

Red flag	Why it matters	What to do
"Guaranteed approval, no credit check, any status"	Real lenders check before they promise	Walk away; compare with a credit union
A fee before the loan is paid out	Classic advance-fee scam	Do not pay; report to the FTC
Payment by gift card, wire, payment app or crypto	Hard to trace and reverse; the FTC says this signals a scam	Refuse
No APR in writing	You cannot compare the cost	Ask for the disclosure; leave if refused
"We will report you to immigration if you do not pay"	False threats are illegal collection practices	Save evidence; report it
Contract only in English after a sales talk in your language	Terms may differ from what you were told	Ask for time and a trusted translator before signing

Your rights if you are denied

If a US lender turns you down, it must tell you, and you are entitled to know why. Use that information: it shows exactly what to fix before you apply again.

A decision within 30 days. Under Regulation B, a creditor must notify you of its decision within 30 days of receiving a completed application.
Specific reasons. The adverse action notice must either state the specific principal reasons for the denial or tell you that you can request them. If you ask within 60 days, the creditor must give you the reasons in writing. Vague statements such as "you did not meet our internal standards" are not enough.
A free credit report. If the decision relied on a credit report, the notice names the credit bureau, and you can request a free copy of that report.
The right to complain. The notice lists the federal agency that supervises the lender. You can also submit a complaint to the CFPB.

Common reasons for newcomers are "insufficient credit history," "unable to verify identity" and "length of residence." None of these is permanent. If the stated reason is your immigration status, try a credit union or CDFI. If you believe the real reason was your national origin, for example because staff commented on your country or accent, write down what happened and consider a complaint.

Do not respond to a denial by applying to five more lenders the same day. Each application can add a hard inquiry to a file that has almost nothing else in it.

Sending money home vs borrowing

Borrowing at a high rate in your new country in order to send money home is one of the most expensive things a newcomer can do. Where you can, send from income and cut the cost of the transfer instead.

Before you take a loan for a remittance, consider:

Total cost. A transfer has a fee and an exchange-rate margin. A loan adds interest on top of both.
Smaller, regular transfers from wages instead of one large borrowed sum.
Your rights. For international transfers from the US, the CFPB explains that providers must show you the exchange rate, fees and taxes, and the amount to be received before you pay. You generally have 30 minutes to cancel at no charge if the money has not been picked up or deposited, and 180 days to report an error.
The effect on your credit plan. A new high-cost loan in your first year can crowd out the small, on-time payments that build your record.

Our guide on how to send money internationally for less compares transfer methods and their costs.

Borrowing as a newcomer in the UK

In the UK, the pattern is the same as in the US: your overseas credit history does not transfer, lenders want to verify your identity, address, income and right to remain, and the route to fair credit runs through a bank account, a short record of on-time payments and regulated lenders only.

No UK credit file

The UK has three main credit reference agencies: Experian, Equifax and TransUnion. Experian's guidance confirms that credit data is not transferred between countries. A new arrival therefore has a blank or very thin file at all three, and lenders that rely on automated scoring will often decline.

The electoral roll, and what to do if you cannot register

UK lenders use the electoral register to confirm your name and address. Experian says that not being registered can make it harder to get credit. But not every resident can register. According to GOV.UK, in England and Northern Ireland you can register if you are a British or Irish citizen, a qualifying Commonwealth citizen, a citizen of certain EU countries (Denmark, Luxembourg, Poland, Portugal or Spain), or an EU citizen who has had permission to stay since on or before December 31, 2020. In Scotland and Wales, eligibility for the register extends to anyone with permission to enter or stay in the UK.

If you are eligible, register as soon as you have an address. If you are not, Experian explains that you can add a short note, called a notice of correction, to your credit report saying that you cannot register because you are not eligible to vote, and that you have documents to prove where you live and for how long. It warns that applications may take a little longer because a person may need to read the note. You can ask the other agencies to add the same note. Keep a tenancy agreement, council tax bill and utility bills ready as address evidence.

Bank account first

A UK current account is the foundation. It gives you a record of income and regular payments, and lenders see it as a sign of stability. If you cannot get a standard account at first, ask about a basic bank account, which offers everyday banking without an overdraft. For students and other new arrivals, our guide to opening a bank account abroad covers documents and common problems.

Credit builder cards

"Credit builder" cards are ordinary credit cards with low limits and high interest rates, aimed at people with little or no history. Used for a small monthly spend and repaid in full by direct debit, they add positive data to your file at little or no cost. Carrying a balance on one is expensive.

Credit unions

UK credit unions are financial cooperatives. According to the trade body behind Find Your Credit Union, members share a "common bond," such as living or working in the same area or working for the same employer. Credit unions are authorised by the Prudential Regulation Authority and regulated by the FCA, and savings are protected by the Financial Services Compensation Scheme up to its limit. By law, a credit union in Great Britain cannot charge more than 3% a month on the reducing balance of a loan, which works out at 42.6% APR. That is a ceiling, not a typical rate. Many credit unions will lend small sums to members with thin files, sometimes after a period of saving.

FCA authorisation

Any firm that lends to consumers in the UK must be authorised by the FCA. Before you apply, look the firm up with the FCA Firm Checker or on the Financial Services Register, and use the contact details shown there. The FCA says using an authorised firm with the correct permissions greatly reduces your risk of harm, although it does not remove all risk.

The FCA also warns about loan fee fraud. Scammers contact people who have searched for loans online and ask for an upfront fee, typically between £25 and £450, paid by bank transfer, gift vouchers or crypto. The FCA's message is blunt: once the fee is paid, the loan never arrives. You can report a suspect firm to the FCA on 0800 111 6768.

Visa length and lenders

UK lenders set their own policies on visa holders. Many ask how long you have lived in the UK and how much time remains on your visa, and prefer the loan to end before your visa does. Some require a minimum period of UK residence or a permanent right to stay for larger loans and mortgages. These are commercial policies, so they differ from lender to lender.

A short note on Canada

Canada works much like the US and UK: you start with no Canadian credit file, and the standard first step is a bank account plus a card designed for people with no history.

Credit bureaus. The FCAC says there are two main credit bureaus in Canada, Equifax and TransUnion, and that credit scores usually range from 300 to 900. Payment history is the most important factor.
Foreign history. The FCAC notes that some lenders may look at your credit history from another country, and that you may need to provide your foreign credit report and meet with a bank officer.
Bank accounts. Under federal rules described by the FCAC, you can open a bank account even if you do not have a job, do not have money to deposit right away, or have been bankrupt, provided you show acceptable original identification. You do not need to be a Canadian citizen.
Secured cards. The FCAC specifically suggests considering a secured credit card if you are a newcomer to Canada with no credit history. It cautions against offers from unknown institutions and issuers outside Canada.

Scams aimed at immigrants

Scammers target immigrants because newcomers are unfamiliar with local rules, may fear the authorities, and often need money or paperwork quickly. Knowing the common scripts is the best defense.

Fake lenders in your language. Social media or messaging-app ads in your native language promise loans "for immigrants, no SSN, guaranteed," then ask for a fee, a "deposit to prove you can repay," or your bank login.
Government impersonators. Callers claim to be from immigration, the tax agency or the police and demand immediate payment. The FTC notes that real US government websites end in .gov, and that anyone who insists on payment by gift card, wire transfer, payment app or cryptocurrency is a scammer.
Notarios and fake consultants, as described above. The FTC also stresses that nobody can guarantee you a green card or citizenship.
Affinity fraud. Someone from your own community, church or country promotes an "investment" or informal loan scheme. Shared background is not a license.

In the US, report scams at ReportFraud.ftc.gov. The FTC says you can give as much or as little information about yourself as you are comfortable with, or ask an attorney to report for you. In the UK, report to the FCA and to Report Fraud. For a fuller list of warning signs and recovery steps, see our guide on how to avoid loan scams and fake offers.

A 12-month plan

A realistic first-year plan is to spend the first three months getting set up, the next three building a record, and the second half of the year widening your options, borrowing only if you truly need to.

Weeks 1 to 4: identity and banking. Get your SSN or ITIN (US), National Insurance number (UK) or Social Insurance Number (Canada). Open a bank account. Get one official document showing your address.
Month 2: join and register. Join a credit union if you can. In the UK, register to vote if eligible, or prepare your address evidence if not.
Month 2 to 3: first credit product. Open one secured card, credit builder card or credit-builder loan. Set up automatic payment in full.
Months 3 to 6: build an emergency fund. Even a small cushion reduces the chance you will need a high-cost loan.
Month 6: check your reports. Fix name and address errors. Dispute anything that is not yours.
Months 6 to 9: add one account if useful, and ask whether your secured card can graduate.
Months 9 to 12: compare, then decide. If you need a loan, get quotes from a credit union, a CDFI or community lender, and one mainstream lender. Compare APR and total of payments.
Month 12: review. Check your reports again, and replace any expensive early product with a cheaper one.

If you need money urgently before this plan has had time to work, start with your credit union, a local CDFI or a nonprofit that serves immigrants before you turn to a high-cost lender.

Checklist before you sign

I have checked that the lender is licensed in my state, or authorised by the FCA in the UK.
I found the lender myself. It did not find me through an unsolicited call or message.
Nobody promised "guaranteed" or "easy" approval, and nobody asked for a fee before paying out the loan.
I know the APR, the monthly payment, the number of payments and the total I will repay.
I have at least one other quote to compare, ideally from a credit union.
The loan term ends before my visa or work authorization does, or I have a plan if it does not.
I know whether I can repay early without a penalty.
I understand every page, with a translation from someone I trust if needed.
The lender reports my payments to the credit bureaus.
I can afford the payment even in a month when I send money home.
If someone is co-signing, they understand they are fully responsible.

FAQ

Can I get a loan in the US without a credit history?

Yes, but your choices are narrower at first. Credit unions, CDFIs, secured loans, co-signed loans and some specialized lenders will consider applicants with no US credit record. Mainstream unsecured loans at good rates usually require several months of reported history.

Can I get a loan with an ITIN instead of a Social Security number?

Some lenders accept an ITIN, including certain credit unions, community lenders and banks. It is each lender's choice. Remember that the IRS says an ITIN is for federal tax purposes only and does not authorize work or change immigration status.

Is it legal for a lender to ask about my immigration status?

Yes. Regulation B allows a creditor to consider immigration status and related information needed to assess its rights and remedies for repayment. What the Equal Credit Opportunity Act prohibits is discrimination on bases such as national origin, race or religion.

Are there loans with guaranteed approval for immigrants?

No. A legitimate lender checks your identity, income and credit before deciding. The FTC treats guaranteed approval combined with an upfront fee as a hallmark of advance-fee loan scams, and the FCA gives the same warning in the UK.

How long does it take to build credit in the US?

It commonly takes around six months of reported activity before a score can be generated, and about a year of on-time payments before offers improve noticeably. One account that reports to all three bureaus and is paid on time is enough to start.

Does my credit score from my home country transfer?

No. Credit files are kept country by country. A few lenders can view a translated foreign report through cross-border services, or will review a foreign report by hand, but this does not create a local credit file.

What is the best first credit product for a new immigrant?

For most people it is a secured credit card or a credit-builder loan from a bank or credit union, because approval does not depend on a credit score and the cost is low if you pay on time. The right choice depends on whether you can spare money for a deposit.

Can a visa holder get a mortgage in the US?

Often, yes. Fannie Mae says it buys mortgages made to lawful permanent and non-permanent residents on the same terms as US citizens, and the lender decides what status documents it needs. Other programs have their own residency rules, and some changed in 2025, so confirm current eligibility with the lender.

Will a payday loan help me build credit?

Generally not. The CFPB notes that payday loans are typically not reported to the nationwide credit bureaus, so on-time payments do not help you, while the cost can equal an APR of almost 400 percent. A payday alternative loan from a federal credit union is capped at 28% APR.

Can a lender or debt collector report me to immigration if I miss payments?

Owing money is a civil matter, not an immigration offense. Debt collectors may not make false threats of arrest or legal action or pretend to be from the government. If someone threatens you this way, keep the evidence and report it to the CFPB, the FTC or your state attorney general.

What should I do if my loan application is denied?

Read the adverse action notice. It must give the specific reasons or tell you how to request them within 60 days. Get your free credit report, fix what you can, and wait before applying again. Consider a credit union or secured product in the meantime.

How can I get a loan in the UK if I am new and not on the electoral roll?

Open a UK bank account, gather proof of address, and ask the credit reference agencies to add a notice of correction explaining that you are not eligible to register to vote. Then consider a credit union or a credit builder card, and check that any lender is FCA authorised.

Bottom line

Being new to a country means starting with no credit record, not a bad one. Lenders may ask about your status and how long you can stay, but they may not treat you worse because of where you come from. The quickest safe path is steady: a bank account, a credit union membership, one low-cost credit-building product paid on time, and patience for six to twelve months.

If you must borrow sooner, start with credit unions and community lenders, compare the APR and the total you will repay, and walk away from anyone who promises guaranteed approval or wants money first. This guide is general information, not financial, legal or immigration advice.

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