Studying in the United States is a great investment for your future, while also coming with a considerable amount of responsibilities. You leave your support network to pursue your education with the opportunity to gain a career in the process. However, for many international students, there may also be complex financial hurdles that come with immigration. This often shows when you apply for funding, whether it be a car note or a personal loan, as many traditional banks often require a U.S.-based cosigner who is legally bound to your loan and required to pay if you can’t. And while this requirement can make the financial system feel inaccessible, the market for student loans may be more possible than you originally anticipated. By understanding how specialized lenders operate and taking specific steps to establish your credit profile, you can fund your degree and take advantage of loans for international students in the USA without a cosigner.
Why Traditional Lenders Demand a Cosigner
To navigate the system effectively, it helps to understand why the barrier exists. U.S. banks rely heavily on credit scores to assess risk. They analyze a borrower's past payment history to predict the likelihood of repayment.
If you are new to the country, you are likely "credit invisible." This means you do not have a bad credit score; instead, you have no score at all because the major credit bureaus have no data on you. Without this data, traditional institutions cannot easily assess your reliability.
Additionally, lenders consider the logistical challenges of repayment. If a borrower leaves the country after graduation, collecting on a debt becomes significantly more complicated. Because traditional banks cannot assess your risk through a standard credit score, and because legal recourse is more difficult across borders, they mitigate their risk by requiring a cosigner. The cosigner acts as a safety net for the lender.
New Opportunities: Forward-Looking Lenders
In recent years, a new category of lenders has emerged to address this specific gap. These companies recognize that rejecting high-potential international students is a missed opportunity. Instead of relying solely on past credit history, which you haven't had the time to build, these lenders utilize different underwriting models.
These "no-cosigner" lenders assess you based on your future potential. They analyze factors such as:
- Your University: Is the institution known for strong graduation and employment rates?
- Your Major: Are you studying a high-demand field, such as STEM or business?
- Expected Graduation Date: How soon will you be entering the workforce?
By using data to project your future income, these lenders can offer loans for international students in the USA without cosigner requirements. It is important to note that because these lenders are taking on more risk than a traditional bank, the terms may differ. Interest rates might be higher than what a domestic student with a prime-credit cosigner would receive, making it even more important to understand the details of your loan agreement.
Navigating Private Loan Terms
Since international students are generally ineligible for federal financial aid, you will likely be comparing private loan options. Financial literacy is crucial here. Unlike federal loans, which often have standardized rates, private loans can vary significantly.
You might encounter variable interest rates that start low but fluctuate over time based on market conditions. It is vital to understand how interest accrues and when repayment begins. Even though you may not qualify for federally subsidized loans, understanding the general mechanics of student loans is helpful. For example, learning What Is the Difference Between Subsidized and Unsubsidized Student Loans? can clarify why paying off interest while you are still in school, even if it isn't required, can prevent your balance from growing larger than expected.
The Visibility Gap: How Immigrants Can Build Credit for 2026
Securing a loan helps you pay for school today, but you also need to think about your financial life after graduation. A significant challenge for newcomers is the "visibility gap."
Millions of immigrants and international students are financially responsible. You pay tuition, rent, and utility bills on time. However, because these payments are not typically reported to the major U.S. credit bureaus (Equifax, Experian, and TransUnion), they do not count toward your credit profile. In the eyes of the financial system, your reliability is invisible.
This lack of data impacts more than just student loans. When you graduate and want to lease an apartment, finance a car, or apply for a credit card, you will face similar verification hurdles. Bridging this gap requires a deliberate strategy. You need to identify financial tools that verify your identity and report your positive behaviors to the bureaus. By creating a data trail now, you ensure that your financial reputation is established by the time you need it most. For a more detailed look at overcoming these specific barriers, read about The Visibility Gap: How Immigrants Can Build Credit for 2026.
Why You Should Build Credit While You Study
Many international students wait until they secure a job after graduation to start thinking about credit. However, building a credit profile takes time, typically at least six months of reported activity to generate a score, and years to build a strong one.
If you wait until graduation, you may enter the workforce with a blank financial slate. You could secure a high-paying job, but still be rejected for a lease because you have no credit history. Conversely, if you start building credit while you are a student, you can graduate with a solid score already in place.
To do this effectively, you need to know what lenders are looking for. FICO®, the analytics standard used by 90% of top lenders, calculates your score based on specific data points. The most critical factor is your payment history, which accounts for 35% of your score¹. This means that every month you pay a reported bill on time, you are strengthening your profile.
Lenders also look at your credit mix (10% of your score), which refers to the variety of accounts you hold, such as credit cards and installment loans. Demonstrating that you can manage different types of credit responsibly is beneficial. For a deeper breakdown of these factors, you can review What's in your credit score.
Strategies for Establishing a Financial Footprint
How do you build a history if traditional lenders are hesitant to give you credit? There are specific entry-level products designed to help you solve this puzzle.
1. Secured Credit Cards
A secured credit card is a common starting point. You provide a cash deposit (e.g., $500) that serves as your credit limit. Because the bank holds your deposit as collateral, they are willing to issue the card despite your lack of history. You use it for small purchases and pay it off in full every month. Over time, this builds a positive payment history.
2. Credit Builder Loans
These are distinct financial products where you lend money to your future self. Unlike a traditional loan, where you receive cash upfront, a credit builder loan holds the funds in a locked savings account. You make monthly payments, which are reported to the credit bureaus. Once the term ends, you receive the money back (minus interest or fees). It is a safe way to build payment history without the risk of overspending.
3. Rent Reporting
Some third-party services allow you to have your monthly rent payments reported to credit bureaus. Since rent is likely your most significant monthly expense, having it count toward your credit score can be very effective.
For a step-by-step guide on combining these strategies, check out our article on How to Build Credit in 2025.
How Cheers Helps You Establish a Footprint
If you are looking for a straightforward way to build credit while focusing on your studies, Cheers Credit Builder offers a solution tailored for those new to the U.S. system. Cheers is designed to help you establish a credit footprint without the barriers that traditional banks often impose.
How It Works: Cheers operates as a credit builder loan. You select a monthly payment plan that fits your budget. Every month, you make a payment into your secure account. Cheers reports these payments to all three major credit bureaus-Equifax, Experian, and TransUnion².
This reporting is essential. By reporting to all three bureaus, you ensure that your history is visible regardless of which bureau a future landlord or car dealership checks. Additionally, because Cheers creates a new trade line on your report, it contributes to both your payment history and your credit mix¹.
Student-Friendly Features:
- Forced Savings: Saving money as a student can be difficult. With Cheers, your payments accumulate in a locked account. At the end of the term, you receive your savings back, minus interest³. It functions as a savings plan that simultaneously builds your reputation.
- No Hidden Fees: When you are managing tuition costs, every dollar counts. Cheers has no application fees and no maintenance fees⁴.
- Speed: You don't have to wait months to see results. Cheers utilizes accelerated reporting⁵, meaning your account and your first payment are reported within 15 days of opening.
By using a tool like Cheers alongside your student loans, you address your financial needs from two angles. Your student loan covers your education costs, while your credit builder account establishes the personal credit history you will need for life after graduation.
Conclusion: Taking Control of Your Financial Future
Being an international student is often ingrained in persistence and adaptation. You’ve navigated the admissions process, gathered your visa, and have uprooted your life to live across the world. However, finding loans for international students in the USA without a cosigner can be another significant hurdle. It’s essential to note that this is not the end-all, but just a new start. Leveraging modern lenders who look at different data points, you can secure the funding that you need. By starting to build credit now, you set yourself up for after graduation, where you won’t just be a degree-holder but a trustworthy borrower with a strong financial foundation. Taking those steps with Cheers can be one step of many to achieve the financial identity that matches your academic one.
Get Started with Cheers Credit Builder
This content is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor or tax professional before making any financial decisions.
(The opinions expressed in this article are the author’s own and do not reflect the view of Sunrise Banks, N.A. Member FDIC.)⁶
References
- What’s in your credit score - https://www.myfico.com/credit-education/whats-in-your-credit-score
Footnotes
1FICO® Credit Factors: According to FICO®, 35% of your credit score is based on payment history, and 10% is based on credit mix. Cheers reports every payment and adds a secured installment loan to your profile. Source: myFICO： https://www.myfico.com/credit-education/whats-in-your-credit-score
2Payment activity: All payment activity is reported to the credit bureaus. On-time payments may help build your credit, while late or missed payments may negatively impact it. Results are not guaranteed and depend on your individual financial behavior and credit profile.
3Cancel Anytime & Get Savings Back: At the end of your term, your total savings (minus interest) is returned to you. You can cancel your account at any time without penalty.
4No Hidden Fees: There are no application fees, maintenance fees, or early cancellation penalties.
5Accelerated Reporting: Accelerated reporting applies to the opening of your account, plus the first payment. Credit bureau reporting occurs monthly thereafter
6Sunrise Banks: Cheers is a financial technology company and not a bank. Banking services are provided by Sunrise Banks N.A. Your funds are FDIC insured up to $250,000 through Sunrise Banks, N.A., Member FDIC. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus, which may negatively impact your credit score. This product will not remove negative credit history from your credit report. All loans are subject to approval. Must be at least 18 years old, have a valid U.S. bank account, and a Social Security Number.
