Transcript of Podcast #25: Starting a Bank Account, Getting a Social Security Number, and Credit Card
In Attendance: Melisa Perut (she/they) & Joseph Hin Yan Lam (he/him)
Alongside our Information on SSN you can also visit the International Center’s website for more details. We also briefly discuss taxes in this podcast. The International Center hosts workshops during tax season (usually Winter/Spring Quarters) to assist in students understanding their tax obligations and the process to get your taxes completed as an international student.
Melisa: Okay, hi everybody. Welcome back to another GIC podcast episode. I’m your host, Melisa. So, today we’re going to talk about starting a bank account in the US and getting a credit card. Starting a bank account is quite important. That’s where the university is going to, you know, distribute your pay. And you’re going to be using your card a lot for many things. But also you might want to get a credit card. So we have the wonderful Joseph with us. He’s going to tell us all about how to get everything started so you can get situated when you arrive in Irvine. So welcome Joseph. Great to have you. Can you start by introducing yourself?
Joseph: Sure. I’m Joseph. I use he/him pronouns and I’m going to be a 4 year student in a School of Education, the PhD program.
Melisa: Right and School of Education is one of the closest to some of the housing communities so it’s a very nice location to be and so if you’re coming for the school of education, you’re going to come to a great part of campus. So Joseph, where do you call home?
Joseph: I’m from Hong Kong and I still see myself as a Hong Konger.
Melisa: Nice. And are you a returning mentor?
Joseph: Yeah, this is my second year being in the GIC program and I really enjoy it and so I really enjoy like interacting with different mentees.
Melisa: Nice. And what do you like to do in Irvine in your free time?
Joseph: As you know, like, Irvine is a really culturall diverse place with lots of good restaurants. So in my free time I just go explore different kind of cuisine around.
Melisa: Yeah, so if you need any recommendations, you should definitely reach out to Joseph because Joseph, he has tried a lot of different food, right?
Joseph: Sure
Melisa: Do you have any favorite restaurants?
Joseph: I really enjoy a couple of Japanese restaurant around Costa Mesa. So is like a 10 min drive from the campus and then is authentic Japanese food.
Melisa: Nice. I recently tried shabushabu, and I really, really enjoyed it. So, any recommendations you can always come to, us because we kind of like food. So, Joseph, today we’re gonna talk about something that’s really, really important, something that everybody should do in the first couple of days when they arrive. But to be able to, you know, start a bank account and get settled, students need this thing called the social security number, the SSN. Can you tell us what is an SSN and why is it important? (note: a SNN is not required to start a bank account but will be necessary for some credit cards and will be important for employment or other opportunities. We will talk more about this later in the podcast)
Joseph: Yeah, SSN is super important. I will say like one of the first thing, first real thing that I have, need to do right after I arrive in this in the states. So SSN, the Social Security Number is a 9 digit identification number. So the US government will give it to you for tax purpose and also you need to have work to use it for for documenting your tax.
Melisa: And, it’s quite an important number. You have a very small ID card for it. So you should definitely hold onto it. And you’re not supposed to share it with anybody. If anybody asks, you only share the last 4 digits or 3 digits of your social security number (note: outside of work authorization where you will share your card. Such as a campus TA position or GSR position. If you are asked for this number through email or phone, this is most likely a scam and you should not share your number with them). So it’s not like you’re maybe in your home country, you have an identification number. Your ID number that’s what you have on your license or your California ID. This is something that’s more private and, specific to you. So it’s quite important. How does one get a social security number and how long does it take?
Joseph: Yeah, that’s great important thing is like how long does it take and once you have the SNN number if you are coming from a previous program in the state and you already have it you don’t need to apply for another one but if you don’t have it, you need to start, by having a work verification letter so you can obtain it from your hiring department. And together with the UCI International Center to have like a social security number, verification letter. So it might take like, a week or two depending on the availability of the international center and then for you to get the verification letter first. And after that, you need to gather all the document like the verification letter and also like your personal doc, ID or passport and also your application form. And then you have to apply to a local at social security office. So a few, some of them are quite close like a Mission Viejo which is around like a twenty to twenty five minutes of driving. And you can search the SSA office locator. And the one Mission Viejo is more, they know more about like a student applying for SSN so it will be a nice place to go.
Melisa: Yeah.
Joseph: And after that
Melisa: Oh, sorry. Yes, go.
Joseph: it takes around like four weeks or so to get your SSN.
Melisa: So, okay, so first you get the documents and then you go to the, these social security offices. And you can choose whichever one you want to go to. As Joseph said, the Mission Viejo, is a little bit farther, I think, than Santa Ana, but it is less crowded too. And you should definitely go early in the morning to get in line because everybody gets in line before it even opens because it takes a long time because a lot of people are trying to get this number. Right. So, definitely, maybe connect with some people so you can all go together. And just like wait there in line. And you can just like chat for a little bit because it might take a little bit. And then as Joseph said, the four week waiting period is what you have to do after that. But quite very, very important. Thank you so much, Joseph. And then. I think this also connects
to your taxes, right? And can you tell us a little bit about the IRS and maybe the 1098 T form.
Joseph: Yeah, sure. Like the SSN is the one that is for tax purpose. So it links to, like a lot of your work authorization about like work so you list you an SNN and if you work and then the 1098 is like the tuition statement. So, some of the student might have it, some of the student might not have it depending on your enrollment and also like the finance office department. So it is a statement to, to talk about like, what to report, reportable transaction between the school and you. So, some of our program might have been necessarily eligible for like some tax credit. So you will get it. And, so you expected to get the 1098 T form electrically, electronically. So, you have to go online and download it. And then, so where to download it is from your Zot! Portal. So, and then under that you’ll find the finance tab. So again, UCI like offer really good, guidelines on that. So if you just searched UCI IRS 1098 and then you would see a really complete information about that.
Melisa: Yeah, and always keep track of these documents. They’re very important and they will, you might need to mail them so it’s always a good idea to have multiple copies of these documents.
Joseph: Yeah, and just one more reminder is like because some student when you come to the state you don’t have an SSN first. So at that time, your 1098 form will not have your social security number but once you have it, have your social security number you need to update with the finance office for your new SSN number. Cause, cause they need to input that for you. So, they also like, you have to do by mail or by fax. To fax your new application form to have that update.
Melisa: Oh yeah, that’s a great point. So because you get this social security number independent of the school, you definitely need to let them know. And any changes to certain statuses throughout your, time at UCI. I think you need to report some of them. For example, if you’re a citizenship status changes, you have to report it to them, and a couple of other things (Note: yes, any changes to type of visa or citizenship status should be reported to Registrar and Financial offices. Even if you have reported them to the International Center). So be on the lookout, if there are any changes to your status. So now that everybody kind of has a sense of, okay, I have the social security number, let’s say they, the four week waiting they finally got their social security number. What should they do next? I guess the big topic is how do they open a bank account? Can you tell us a little bit about that?
Joseph: Sure. Opening a bank account is very important is for you to deposit your money. You don’t want to keep like all your money at home or like use cash all the time. So you always want to have a back account. So like, for some bank, they don’t require you to have like an SSN, to open the bank account. Some bank near campus they do know like some like new international students so they only require your passport and your how like your housing, renting contract, for you to open the bank account. So, for you to start with, it will always be good to go to some bank near campus so they are more familiarized with like, how international student are and then what kind of document that we can qualify. So, usually you bring your passport, you bring some money to deposit and also, bring your rent for the, through your rent contract for the housing approval.
Melisa: Oh, that’s great. So a lot of important documents that you need to bring. So be aware. But also be prepared. That they might say, oh, we also need this. Come back next day or come back later today. And so just be prepared and I would choose not to go somewhere that’s too far away. Because you, some for some you know, proceed, procedures, you have to go back to the bank that you opened your account with. So the closer it is to campus, the easier it will be for you, just in case.
Joseph: Yeah.
Melisa: And this is all for like a regular bank, what they call a debit card, right?
Joseph: Yeah, yeah, that’s the debit card, and you got a check, checking account. So a checking account, you just go there and then you ask to open a checking account. And also one thing is some bank they require like a minimum amount of money deposit. So you have to ask them oh like do they have like service charge if you cannot reach the monthly minimum deposit.
Melisa: Oh yeah, that’s a great point. The bank that I work with, they gave me a booklet when I opened my bank account and they said your account could never have less than $25 in it. And every month you have to have at least 10 transactions on your account. Otherwise, they charge a service fee. Which is annoying because why? But just be aware of these you know certain you know, rules for your bank so you don’t get charged extra money because I would get charged like $10 a day or something and that imagine 4 days I didn’t notice it. And my account was below $25. I hope it never goes below $25, but if it does like $40, no. Nobody wants that. Exactly. So. (note: always check for student account options. Sometimes they have less service charges because they know that students don’t always have the financial means to meet the other requirements. Some banks though have a restriction on how long you can have a student account or how old you can be to open a student account)
Joseph: Yeah totally, you always want to be aware of like those kind of rules before you open your account.
Melisa: Yeah and especially when you first arrive here, if you arrive over the summer, remember depending on the lab you’re in of course but if you are TAing (Teaching Assistant) and you rely on TAship (Teaching Assistant Position) for your income, you won’t get paid until the first of October. No, the first of November.
Joseph: The first of November.
Melisa: You won’t get until the first of November. So just be on the lookout for your bank account. But you should be able to open your bank account, get your social security number during the fall quarter. Right? What do you think, Joseph?
Joseph: Yeah, I get my bank account like before fall quarters start because I go to one of the bank near campus and then they know international student you got no SSN physically you haven’t that so I get my my bank account free early. And for my SSN it took a little bit longer because at that time I still apply SNN during COVID. So I still have to call them to make an appointment. So that part takes me like two days just waiting to get in line, call them. So, yeah.
Melisa: Yeah. Oh, okay, great. Well, just so you are all aware, you can get it done even earlier before the end of fall quarter.
Joseph: Yeah.
Melisa: So that’s a great, source of information. Joseph, thank you. So we talked about creating a checking account, you know, where you get your income, where you get to spend your money. What about opening up credit cards? What is the application process like for a credit card in the US?
Joseph: So, after you get your income. So one of the thing is like when you get your income you have to set up the direct deposit. I mean, I we also have to talk about that. Just like, otherwise the school would keep mailing check to you. To your mail, which is also another alternative, but if you want that the direct deposit to your bank account, there’s also an option that you can do online in the finance office. Through the Zot Portal. And talk to bring that about like, the credit card. So, credit card is very useful because a lot of place around we, receive, they accept credit card payment, and it’s very good for you not to bring too much cash out. So. For the credit card there do there is most of them require an SSN. I would say like nearly all of them require SSN but a few of them they allow you to, they are specially designed for international student to apply. So you can also Google it to see like a credit card without an SSN. So. But most of them they do require an SSN for you to apply and you need your, your address proof. And also your passport. And or and also some other like personal documents depending on what kind of credit card you’re applying for.
Melisa: Yeah. Passport usually works as your ID, but they might need more than one, source of identification. So I remember I was asked provide both my passport and my driver’s license. I don’t know why. They just asked. They just really want to know more of me, I guess. But yeah, so. Based off of the credit cards, can you tell us a little bit about do we have to go into a bank to open a bank account like an credit card? Are there any online options? Can you give us an idea?
Joseph: Sure, most of the credit card is online apply. I try like most of my online apply and then basically you just fill out the application and then you, they will email oh you got accepted and then like around a week you will get your credit card mailed to your address. Or like if you got rejected they will also provide you with the reason and then you can see like, oh, did I miss out anything? Or is it because of other kind of reason? So one of the reason that you other than you missed some information, personal information that you haven’t filled in is your credit score. It’s too low to get that credit card.
Melisa: Oh, well, what is a credit score? Can you tell us?
Joseph: So credit score is the system that to see like how much, how do your financial performance is. So the higher the better. So, so you want to, so is that with around like 500 and it goes up to like 800 something. So, credit score can be affected by the number of accounts that you have. How long have your account, has been open. Did you pay for or your card payment on time. Which is very important because like if once you get a credit card you always want to pay the payment on time. Otherwise the interest it’s very, very high. Like, like, so remember to pay your credit card payment on time. Don’t just pay the minimum, always pay like all the things that you you get. And also it will be affected by like how much have you used your credit card. You don’t want to like over spend. So, so when the bank make the decision about whether they will give you the new credit card, they will consider your credit score. So they consider this kind of aspect and then they were like come to a decision. So you always want to keep track of your credit score as well. And also, when you apply for new credit card.
Melisa: Yeah, and, so when you, if it’s the first time you’re opening an account, any bank account in the US, that means you’re going to have no credit score. And that can make getting a credit card a bit difficult because some companies want you to have a credit score to be able to give you a credit card. But some of them don’t. Some of them, need, some of them allow you to open, secure, I think it was a secure credit card where it has a limit. A limit that you pre put into the card. So since I didn’t, I didn’t have a credit score when I, started living here. I was able to open a bank account with a three, no a credit card with a $300 limit. So the first year, my credit cards limit was $300. That’s what they allowed me to do. At least the bank that I was working with. The bank that I chose, yes, it had its limitations, but at the same time it had 0 fees. So that’s why I chose the bank that I worked with and for the first year, I only paid for Netflix. So I used my credit card to only pay for Netflix, which was a very, very, very low amount. And that helped me get a good credit score because I was paying it on time. It was automatic, automated the payment. And also it was a very small percentage of my allowance like my balance, so it didn’t look like I was over spending. So it makes me appear to the banks like I am a financially responsible person that could have a good credit. Am I? That’s another question.
Joseph: Yeah, so you have to place you once you start opening a bank you already start joining the credit score game I would say like and you have to act like you are a financially responsible person and definitely you also want to be financially responsible in real life. But like, yeah, do Google more? There are lots of credit card options like compare them because some of them target on students so they might have their some kind of welcoming offers and also they have like less requirement on like your minimum income. And also like, your SSN number. So really depends. So you have to Google more and to search different credit card because like different credit card serve for really different purposes.
Melisa: Yeah, and another tip that we could give you is, you can ask people about, you know, credit cards, what they recommend, what they use, but it’s frowned upon to ask people about their credit scores. I, my understanding or from what I have inquired from people is that it’s very personal, because many things can affect your credit score. If you had to borrow even though like you didn’t have a lot of money, then that really lowers your credit score and it’s something that is not nice to ask. Similar to what party they voted for. Your, people kind of frown upon when you ask them their political affiliations. Which from my culture like everybody asks, everybody knows which party you voted for but in this culture don’t ask people about their credit score and which party they voted for.
Joseph: Yeah, totally. Yeah, but asking like your friends or some other international student, which what kind of credit card do they open is a really good option. I do ask my friend and then like this just me with really good credit card to start with. And I build up my credit score very quickly, which allows me to get more credit cards for different purposes and also and at the same time you want to get some kind of like friends referral bonus as well.
Melisa: Oh, yeah, no, that’s a great tip. And also be aware that, you might be used to having a MasterCard or Visa, for your like bank, but there are many, many different options, here and just be aware that some stores, some, firms, some services might not accept, that kind of payment for example everybody accepts mastercard and visa but not all except American Express or discover. So those services.
Joseph: Yeah, that’s a very good point.
Melisa: Yeah, so. That’s pretty much it, I think. Do you have any final thoughts, Joseph?
Joseph: Oh, just one final for us like, yeah, bank accounts importing, credi card is important, but most important thing is like being like you have plan your finance ahead, don’t overspend so much, like have a good concept of money is especially with the foreign exchange rate that you have from different country so don’t overspend, a lot and then once you get your credit card because you know, like you have to, we’re all international student, we try to calculate like how much the things here with your own currency at home.
Melisa: Yeah, and the reality is everybody’s financial situation is different. The savings that they come here with is different. And you might, if you need to spend more, maybe check in with some of the mentors. Maybe they can give you some tips on where to find things cheaper. Maybe you don’t have to spend as much or maybe some of the things are not as essential and you can try to find alternatives for yourself before you need to invest in something. For example, I lived without a couch for a very long time because they’re expensive and you know I just waited until I was able to save up. So, and this is something that you can discuss with your, mentor, other mentors and like hear from them and, maybe discuss with your colleagues as well. Just be aware that there might be options. You just, can get some anecdotal, information for, them.
Joseph: Yeah. Usually, like, your mentor experienced all the like situation. So you just ask them and then I’m sure all of us are more than happy to share like how we save money. Also at the same time to build out like our credit at the same time.
Melisa: Exactly. Oh, thank you so much, Joseph. I think this is a very, very important topic. And if anybody else has any other questions, if they’re still not sure about some things, please feel free to reach out to us, to your mentors, but also to Joseph and myself, regarding your social security number, bank accounts, credit cards and all of that. But thank you so much Joseph for the time.
Joseph: Thanks for having me.
Melisa: Yeah, it was so great talking to you. And we will see you all in our next episode.