Getting Financially Established in the US: A Migrant’s Guide

Moving to the United States from another country is already overwhelming enough, but getting financially established can be especially daunting in the beginning. After all, the U.S. has its own financial system and regulations. You’ll need to be prepared for things like finding housing, setting up a bank account, building credit, and the potentially higher cost of living.

The good news is that you’re not alone in this process. The U.S. is home to around 45 million immigrants — that’s 13.7% of the nation’s population. Roughly half of those individuals have Latino or Hispanic origins.

Not only that but the world has become much smaller than it used to be — in a good way. Thanks to modern technologies, abundant resources, and international companies, it’s much easier to move abroad, settle in, and start your new life in the U.S.

By following these tips for immigrants to America, you should be able to navigate the process confidently while getting financially established more quickly and with fewer hassles along the way.

Research and Plan Your Move: The Immigration Process

To make your transition to the U.S. easier, research and plan your move ahead of time. This should begin with understanding the legal migration process and the requirements for Latin American immigration to the United States.

As a Latin American citizen, here are some of the main visa options available to you.

Types of US Visas

• Family immigration visa: You may be eligible for this if you have a close family relationship with a current U.S. citizen. This could be your spouse, parent, sibling, or even a child.
• Temporary work visa: If you’re moving to the U.S. for work, your company could sponsor your work visa. Common options for Latin Americans include the H-1B, H-2A, and H-2B visas. This is a major step to getting financially established.
• Student visa: As a Latin American, you could potentially get a student visa — like an F-1 or M-1 — that lets you study for a specific period in the U.S. The visa generally ends once your program does or once your enrollment status drops below full time.
• Tourist visa: For shorter stays, you may be eligible for a tourist visa. However, you won’t generally be able to work or study. If you plan to stay fewer than 90 days, you might not need a visa at all.
• Investor visa: Latin Americans who intend to invest in a U.S. business or create a business with at least 10 full-time U.S. employees may qualify for an investor visa like the EB-5 visa.

Each visa comes with its own stipulations, so research which option works best for you. Read through the application process and requirements carefully so that you know what to expect ahead of time. The process of applying for a visa often takes time and money, so be sure to budget for that.

The Naturalization Process

If you’re thinking about moving more permanently to the U.S., you’ll need to do the naturalization process. Here’s a general overview of how it works:

• Check your eligibility for citizenship
• Complete Form N-400, Application for Naturalization (can be filed online)
• Pay any applicable fees
• Schedule and go to your biometrics appointment (if applicable)
• Complete an interview with U.S. Citizenship and Immigration Services (USCIS) and wait for a decision
• If accepted, take part in a naturalization ceremony (if applicable)
• Take the Oath of Allegiance to the U.S.
• Learn more about and understand your rights as a U.S. citizen

There are several ways to become a U.S. citizen. One option is to get a green card or permanent resident card, which lets you work and live permanently in the country. After five years, you can continue the naturalization process.

Learn About the U.S. Financial System

As a Latin American migrating to the United States, it’s important to be aware of how the financial system works before you arrive and start getting financially established. This can save you a lot of headaches as you are getting financially established and settle into your new home.

U.S. taxes are one of the first things you’ll need to learn about.

If you work in the U.S., you’re expected to pay income taxes on your earnings. This includes money earned from regular wages, tips, and self-employment. You may also need to pay estate taxes or gift tax returns. The way you’re taxed depends on your residency status, but you’ll generally be taxed whether you’re a permanent resident, a citizen, or a nonresident.

How Do I Pay My Taxes?

To pay income taxes, you’ll need to file a federal tax return every year with the Internal Revenue Service (IRS). This is true even if you work for a non-U.S. company while residing in America. Depending on which state you live in, you may also need to file a state income tax return. You can use an online tax calculator to give you a better idea of how much you’ll spend on taxes.

Even if you don’t work in the U.S., there are other taxes to consider. This may include sales tax, regional or local taxes, and property taxes (if you own real estate in the country). Be sure to plan for taxes in your budget so you don’t end up paying more than you expected.

If you become a lawful permanent resident of the U.S. and you have more than $10,000 in foreign bank accounts, you’ll also have to file Report of Foreign Bank and Financial Accounts (FinCEN Form 114) with the IRS once a year. If you don’t, you could face a penalty or other legal consequences.

Budget for Your Move

Moving to the U.S. from Latin America can be expensive, so make sure you budget for those upfront costs beforehand. Depending on your visa, you might also need proof of sufficient funds to cover the duration of your stay.

These are some of the biggest things to factor into your budget as you prepare for your move.

Key Items to Budget For

• Day-to-day expenses: The cost of living varies depending on where you live. Midwestern and Southern states tend to be cheaper than, say, California or Hawaii. Still, you’ll need to consider the cost of things like groceries, health insurance, gas, travel insurance, and transportation.
• Travel costs: Before getting to the U.S., you’ll generally need to calculate airfare, hotels or other short-term accommodations, and any other moving-related expenses.
• Housing expenses: If you’re renting, be prepared to pay a security deposit and renters insurance. The average cost of a one-bedroom apartment in the U.S. is $1,713 per month, but this varies widely by city and state. If you’re buying a home, you’ll need to budget for your mortgage, property taxes, and homeowners insurance. You’ll also need to cover utilities — like gas, water, and electricity — in both cases.
• Legal fees: Calculate any visa or immigration fees, too.
• Miscellaneous or extra expenses: From lifestyle expenses like entertainment or hobbies to currency exchange fees, be sure to factor these in, too as you’re getting financially established.
• Emergencies: Try to leave a little extra room in your budget for unplanned expenses. That way, you’ll have a nice financial buffer just in case.

All in all, the cost of living for one person in the U.S. is about $1,168 per month without rent (again, this varies significantly depending on where you settle). If you add the average rental cost, you can expect to spend around $2,881 a month when all’s said and done. Try to save up as much as you can before moving.

Set Up a Bank Account

An estimated 7% of all immigrants to the United States — including Latin Americans — are unbanked. What this means is that no one in the household has a checking or savings account.

If you plan to stay in the U.S. for a long time, having a bank account is essential to getting financially established. An account allows you to transfer money, pay bills, write checks, withdraw or deposit money at ATMs, and get paid via direct deposit if you have a job. It’s also a secure place to keep your money — just make sure it’s FDIC-insured.

You can generally open a U.S. bank account if you have at least two forms of identification. You’ll also need proof of your physical or residential address in the U.S., which you can find on your leasing agreement or utility bills. In some cases, you’ll need a foreign tax identification number (FTIN) or Individual Taxpayer Identification Number (ITIN).

Of course, you might not need a bank account right away. Depending on your circumstances, you might decide not to open an account at all.

An alternative is to use an international remittance service like Ria. Creating an account is free. Once you have an account, you can pay bills, cash checks, send or receive money overseas, top up your mobile balance, and more — all from the comfort of your home. Ria’s also compatible with mobile wallets across 39 different countries.

Build Credit in the United States

Part of what makes a successful Latin American immigration to the USA is understanding the credit system and establishing credit.

Most U.S. lenders rely on what’s known as your FICO credit score to help them determine whether to lend you money or approve a credit card application. Others use the VantageScore model.

In both cases, your credit score is a three-digit number ranging from 300 to 850. The higher your score, the better your chances of getting a loan or credit card in the U.S.

Having a credit score is key to getting financially established and gaining access to financial products like credit cards, auto loans, and mortgage loans. Some utility companies will check your credit when determining whether to charge an initial deposit. If you’re getting an apartment, your credit score can also affect your security deposit amount.

But not everyone has a credit score. According to the Consumer Financial Protection Bureau (CFPB), approximately 15% of Latin American immigrants are credit invisible. This means they don’t have a documented credit history or a credit score yet.

How Do I Build Credit?

It takes time to build credit, but that’s okay. Here are a few ways to do it:

• Secured credit card: A secured credit card is designed to help you establish credit. You’ll need to deposit a set amount of money — say $300 — when opening an account. That deposit will serve as your credit limit. You can then use the card as you would any credit card. Be sure to make on-time monthly payments, and the card issuer — usually a bank or credit union — will report your payments to the credit bureaus so you can build credit over time.
• Credit-builder loan: When you get a normal loan, you receive money up front and make payments over time. With a credit-builder loan, you make payments into a secure account up to a certain amount for a fixed period. The lender will report your payments to the credit bureaus. Once the loan term ends, you’ll receive the money you deposited.
• Authorized user: If you have a friend or family member who’s willing to add you to their existing credit card as an authorized user, you can build credit this way. You won’t even have to use the account to do it.
• Store credit card: Many major retailers offer store credit cards to their customers. You can generally sign up at the register in just a few minutes. Not all stores report your payments to the credit bureaus, so choose one that does.

Set Up Health Coverage

Although it’s generally not required, it’s still good to have some kind of health insurance coverage in the U.S. After all, you want to be protected just in case something happens as you’re settling in or even later on.

You might be fine with getting short-term international health insurance like Safe Travels USA Comprehensive or Atlas America. But if you plan to stay long term, see if you qualify for a Marketplace plan.

Marketplace coverage is often cheaper than other options. Monthly premiums are generally lower, and out-of-pocket costs are based on your income. You’ll need to be considered a “lawfully present immigrant,” however. Find out if you qualify here.

Get a Job

The United States doesn’t offer any digital nomad visas. However, you might be able to work as a digital nomad if you meet certain legal requirements.

If you don’t already have a remote job that you can take with you, your next best option is to find a U.S. employer willing to sponsor you. You’ll generally need to meet certain criteria — such as a minimum education or industry-specific requirements.

You can find job openings on sites like LinkedIn, Indeed, FlexJobs, and Monster. If you’re looking for a government job, check with the USAJOBS site.

Pay for College

The National Center for Education Statistics found that the average cost of a four-year undergraduate degree in the U.S. ranges from $27,100 to $58,600 per year. This includes everything from tuition to room and board to books and school administration fees.

If you’re moving to the U.S. from Latin America as a student, you might need to take out student loans to fund your education. You may be able to get federal student loans by completing the Free Application for Federal Student Aid (FAFSA) online. You’ll generally need a Social Security number to apply for federal aid. 

You may also qualify for student loans from private lenders. However, they may require you to meet certain income and credit score requirements.

Find Housing

Immigrating to the U.S. is a major life change, but having your housing sorted ahead of time can help smooth the transition into getting financially established. Explore several options before making the move so you have backups in case something falls through.

You can go with a short-term accommodation option like a hotel, hostel, motel, or Airbnb. Or you can choose long-term options like an apartment or a private rental from an individual property owner or landlord.

Typically, you’ll need to complete some kind of application — and pay an application fee — to get a longer-term rental. The application might ask for proof of identification, immigration status, employment, income or assets, and personal references. Some companies will also run a credit check.

If you’re having trouble with this part, consider using an international relocation service to make things easier. They’ll be able to walk you through the process and help you prepare any required documents.

Legally, you can also buy property in the U.S. as a Latin American immigrant. You’ll just need to have sufficient funds or, if you’re going through a lender, meet their financial and credit requirements.

Establish a Business

If you plan to start a business in the United States, you’ll need to get the appropriate permits and licenses. You’ll also need to register your business decide upon a business structure — like an LLC or C-corporation — and figure out taxes.

Learn more about owning and operating a business in the U.S. on the USCIS website.

Send Money Back Home with Ria

Getting financially established in the United States isn’t necessarily easy, but it’s entirely possible. Make sure you prepare in advance so you can get things like your credit, visas, health care, employment, and other financials in order.

And if you are moving to the U.S. from Latin America but need a way to send money back home, you’ve got options. You can use Ria to quickly — and safely — transfer money to over 190 countries and territories worldwide. This includes many Latin American countries.

You don’t need a U.S. bank account to use Ria. Learn more about how Ria works or sign up for a free account today.