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Hey folks,
I have a question. When applying for a credit card, I am usually asked if I am a US Citizen. Independently from the fact that I don't get approved for all credit cards that I apply for~
why is this question even asked?
I understand that there may be a higher risk for a bank to issue a credit card to a non-US Citizen who is not a US resident. But what does the citizenship have to do with my credit history, credit score, financial credibility, etc.
Are there (offical) policies by banks not to issue credit cards to non-US Citizens?
Thanks for your insight, much appreciated.
Best,
Logan_5
It's from the Patriot Act I believe. It may also be associated with the card act. It's to prevent a lot of things but namely terrorists and stuff...
First, I'll confess that I'm guessing, not certain...
But if bank x is based here in the states, they may not have the ability, authority, or the "reach" to collect on a debt incurred by a foreign national...
For instance, Inga from Ireland comes to visit New York for a month, opens 492 credit cards, spends 5.2 million dollars then leaves the country to return to her native Ireland having never paid a penny of her credit card balances. How would bank x even begin to recoup their losses?
If you are a permanent resident of the country that the bank is based in, it's a bit easier to find you.
tcbofade wrote:
First, I'll confess that I'm guessing, not certain...
But if bank x is based here in the states, they may not have the ability, authority, or the "reach" to collect on a debt incurred by a foreign national...
For instance, Inga from Ireland comes to visit New York for a month, opens 492 credit cards, spends 5.2 million dollars then leaves the country to return to her native Ireland having never paid a penny of her credit card balances. How would bank x even begin to recoup their losses?
If you are a permanent resident of the country that the bank is based in, it's a bit easier to find you.
Yes, that's why they ask for your address of residency and SSN. I doubt any US bank would just issue a credit card to a tourist. The question is, why are they not asking for status of citizenship (such as Permanent Resident) but directly for US Citizenship?!
Credit_hawk wrote:
It's from the Patriot Act I believe. It may also be associated with the card act. It's to prevent a lot of things but namely terrorists and stuff...
Asking me if I am a US Citizen "prevents a lot of things"? Sorry, but I don't understand your answer. I am not a US Citizen but a Permanent Resident and I do get credit cards issued to my name. I just don't understand if and why I need to be a US Citizen or why I need to answer that question in my application.
@Anonymous wrote:@Credit_hawk wrote:
It's from the Patriot Act I believe. It may also be associated with the card act. It's to prevent a lot of things but namely terrorists and stuff...
Asking me if I am a US Citizen "prevents a lot of things"? Sorry, but I don't understand your answer. I am not a US Citizen but a Permanent Resident and I do get credit cards issued to my name. I just don't understand if and why I need to be a US Citizen or why I need to answer that question in my application.
Because (foreign) terrorists ALWAYS check the "No" box and sometimes write in "I am a terrorist" which makes things easier for law enforcement.
Think of it like some of the TSA stuff: put into the law but probably provides no additional protection
longtimelurker wrote
Because (foreign) terrorists ALWAYS check the "No" box and sometimes write in "I am a terrorist" which makes things easier for law enforcement.
Think of it like some of the TSA stuff: put into the law but probably provides no additional protection
I understand. A legal issue.
Do you have any reference to either act? I'd like to read up on that if possible. Thanks again
Yes, that's why they ask for your address of residency and SSN. I doubt any US bank would just issue a credit card to a tourist. The question is, why are they not asking for status of citizenship (such as Permanent Resident) but directly for US Citizenship?!
The status doesn't matter so much. To the bank you are either a US citizen or not. A permanent resident can abandon residence very quickly. Essentially you are high risk.
@Anonymous wrote:
longtimelurker wroteBecause (foreign) terrorists ALWAYS check the "No" box and sometimes write in "I am a terrorist" which makes things easier for law enforcement.
Think of it like some of the TSA stuff: put into the law but probably provides no additional protection
I understand. A legal issue.
Do you have any reference to either act? I'd like to read up on that if possible. Thanks again
Look at https://www.gpo.gov/fdsys/pkg/CFR-2010-title31-vol1/pdf/CFR-2010-title31-vol1-sec103-121.pdf
It's not quite explicit, but it refers to a US Person (who is a citizen) and a non-US person. Each type can provide different identifying info, so it makes sense that the bank would ask