HomeResourcesSSN vs ITIN: The Differences E...
June 21st 2023

SSN vs ITIN: The Differences Explained | Which Do You Need

A national ID number like a Social Security number or ITIN is essential for most newcomers to work, file taxes, obtain Social Security benefits, apply for bank accounts, healthcare and more. But which is right for your situation: an SSN or an ITIN?

Nova Credit is a cross-border credit bureau that allows newcomers to apply for U.S. credit cards, phone plans, and loans using their foreign credit history.

We and all of our authors strive to provide you with high-quality content. However, the written content on this website solely represents the views of the authors, unless otherwise specifically cited, but doesn’t represent professional financial or legal advice. As we cannot guarantee the accuracy or completeness of the published articles or sources referenced, please use the information at your own discretion.

Maggie McGrath
Content Consultant and PhD Candidate at the Oxford Internet Institute

Newcomers to the United States must possess a form of national I.D. number in order to work, file taxes, obtain Social Security, apply for bank accounts, healthcare and more. In this article, we explain the two primary forms of national ID in the U.S. — Social Security numbers (SSNs) and Individual Taxpayer Identification Number (ITIN) — and discuss how to choose which may be right for your situation.

What’s the difference between a Social Security Number (SSN) and an Individual Taxpayer Identification Number (ITIN)?

How to Differentiate ITIN vs SSN?

What is SSN?

At its most basic level, a SSN is for U.S. citizens and authorized noncitizen residents. Authorized residents range from students on F1 visas to Green Card holders, but both forms of ID permit legal authorization to work in the United States.

Social Security numbers are needed to work, collect Social Security benefits and pensions, and are required in order to be eligible for other social services. Every American has a SSN, unlike driver’s licenses and passports. Because a SSN functions as a National ID number, it is used across a range of financial and medical services. Only noncitizens authorized to work in the US are eligible for SSNs.

What is ITIN?

An ITIN is for residents with foreign status. This includes undocumented aliens and nonresident aliens that conduct business in the United States. Foreign entities that operate in the United States, including foreign corporations, partnerships, trusts and estates would also require an ITIN.

What can I do with a SSN?

A SSN corresponds to legal immigration statutes. In turn, opening a bank account is easier, and can often be done online. It makes it easier to build credit in the U.S., file medical forms, and apply for student loans.

Additionally, with a SSN, you are paying into the U.S. Social Security system. If you remain in the United States, this means as a retiree you are eligible for retirement benefits. It's possible to get a credit card without an SSN, but SSNs also allow you to apply for credit cards more easily. Credit reporting with ITIN vs SSN is different.

Applying for a SSN as a noncitizen

Applying for a SSN requires filling out the Application For A Social Security Card (Form SS-5). You can file your application at your local SSA office. Generally, you will need to wait 10 days after arriving in the United States to apply for a SSN.

You will need two original documents proving your identity, immigration status, work eligibility, and age. A work permit provides proof of your identity and work-authorized immigration status.

What can I do with an ITIN

The ITIN program was created by the IRS in July 1996 to help foreign nationals and other individuals who are not eligible for a Social Security number (SSN) to pay the taxes they are legally required to pay. Aside from filing your taxes and opening a bank account, the ITIN unfortunately does not help much. As opposed to SSN, it does not provide legal immigration status or work authorization.

An ITIN also allows foreign nationals to:

  • In selected states, obtain a driver’s license

  • Provide proof of residency. This is especially valuable for undocumented resident aliens that plan on ultimately applying for legal immigration status as it indicates years of taxes paid. ITIN taxpayers who ultimately get SSNs will have the money they contributed transferred into their Social Security accounts.

Applying for an ITIN

Applying for an ITIN requires filing a W-7 form along with your tax returns. ITIN is not an immigration enforcement tool. Taxpayer privacy is crucial to the IRS, and they do not disclose taxpayer information.

No one should have both an ITIN and a SSN at the same time. For example, if a SSN application is pending, an ITIN will not be issued even if the individual completes and submits a Form W-7.

The takeaway

As a newcomer to the United States, having a national ID number, whether SSN or ITIN, is essential to work, file taxes, obtain a driver’s license and even open a U.S. bank account. Hopefully this guide has provided some insight into how to obtain an ITIN and/or SSN, as well as how to differentiate between the two.

But while we’re on the subject of obtaining important products and services, did you know that having a U.S. credit score is one of the main considerations for applying for essential services such as apartment rentals, credit cards and loans in the United States? Without one, U.S. creditors and lenders may be less willing to approve applications for these essentials or may do so only after a large down payment. 

To alleviate your worries, there is a way to utilize your credit history from your home country to fill in as your credit score for your application. This is done through Nova Credit’s Credit Passport® - a special system that translates your foreign credit history into a U.S. equivalent score so that U.S. creditors and lenders can evaluate your credit application more favorably.

Nova Credit works with credit bureaus around the world and partners with known credit providers in the U.S. like American Express®, Intellirent  MPower Financing and many more who are willing to provide you their services through your Credit Passport.

Of course, this doesn't mean that you will automatically have a U.S. credit score or history as that process can take years to build, but it does mean that you can obtain a U.S. credit card, rent an apartment, qualify for a student loan and even get a phone plan without the usual hassles of applying with a zero credit score. From there, you can start building your local credit history and eventually, a local credit score.

For more guides and resources on how to arrive and thrive in the U.S., you can check out visit Nova Credit’s resource library where we discuss everything from getting a loan to renting the apartment of your choice and finding the best credit cards as a non citizen. Get in touch with us today to learn more about Credit Passport and our other newcomer products. 

Recently moved to the U.S.?

Put your foreign credit score to work in the United States

Check if you're eligible to use your foreign credit history to apply for a U.S. credit card.

More from Nova Credit:

The best credit cards for no credit history

The best credit cards for international students

How to get a credit card without a social security number

The best secured credit cards in 2020

The best American Express credit cards in 2020

How to use credit cards to build credit history

How to build credit in the US

How to get a social security card

How to get an apartment with no credit history

No credit check cell phone plans

Announcing the Cash Flow Underwriting Summit: a first-of-its-kind executive summit dedicated to exploring and advancing the practice of cash flow underwriting in consumer lending.