Credit Card Application: "Are you a US Citizen?"

[Anonymous]

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

[Credit_hawk]

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...

[tcbofade]

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. 

[Anonymous]

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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. 

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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?!

[Anonymous]

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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...

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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.

[longtimelurker]

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@Anonymous wrote:

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@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...

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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.

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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

[Anonymous]

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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

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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

[Anonymous]

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?!

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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. 

[Credit_hawk]

[longtimelurker]

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@Anonymous wrote:

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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

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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

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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