US Cards for Canadians

Before anything else you need a US residential address. This is where your cards, statements, and IRS letters will arrive. You have two good options.

Option A, a mail forwarding service. Providers like 24/7 Parcel, US Global Mail, and Traveling Mailbox give you a real street address (not a PO box) and scan or forward your mail. Budget $70 to $90 USD per year.

Option B, a friend or family member in the US. If someone is willing to receive your mail, this is the cheapest route. Just make sure they are comfortable with the occasional IRS letter and card envelope.

A US bank account does two jobs for you. It lets you pay your card bills in US dollars, and it gives you a statement with a US address that issuers accept as proof. The easiest path is a Canadian bank with a US arm.

• CIBC US. The most popular choice. No monthly fee on the Smart Account, and you can open it online from Canada.
• TD Bank. Convenient if you already bank with TD in Canada, with branches across the US east coast.
• BMO. BMO's US arm, with an easy cross-border setup.
• RBC Bank. RBC's US presence, mainly in the southeast.

This is the clever part. Amex Global Transfer lets you use your existing Canadian Amex relationship to get approved for a US Amex card, with no US credit history and no ITIN required yet. It is the single best on-ramp Canadians have.

What you need

• An existing Canadian Amex card, open for at least 3 months
• Your US mailing address
• Your US bank account

How to apply

• Online. Apply on the US Amex site and check the box that says you hold an Amex card from another country, then enter your Canadian card details.
• By phone. Call the Amex Global Transfer line and they will walk you through it.

You may be asked to upload your passport and a bank statement showing your US address. That is normal, so just have them ready.

Popular starter cards are the Amex Hilton Honors (no annual fee, a great long-term keeper) and the Amex Gold (strong everyday earning).

An Individual Taxpayer Identification Number (ITIN) is a tax ID the IRS issues to people who are not eligible for a Social Security Number. You need one to apply for cards from Chase, Citi, Capital One, Bank of America, and most issuers other than Amex.

Method 1: use a tax service (easiest)

Services that specialize in this handle the whole thing for roughly $150 to $300. They prepare your W-7 and file a 1040-NR return for you. This is the hands-off option if you would rather not touch IRS forms.

Method 2: do it yourself (about $10)

You will fill out Form W-7 (the ITIN application), Form 1040-NR (the non-resident return), Schedule 1, and Schedule OI. Have your Canadian SIN handy along with a list of any dates you were physically in the US during the tax year.

How to submit

Line-by-line form instructions

Do not let the forms intimidate you. Most fields are left blank, and the real entries are your name, address, SIN, passport details, and one small income number. Line numbers can shift year to year, so always check against the current forms at irs.gov.

Payment and what happens next

• Pay the roughly $9 by cheque to the United States Treasury with your mailing, or online at irs.gov/payments.
• Any late penalty caps at 100 percent of the tax owed, so about $9 at most plus a little interest. There is no need to stress about timing.
• Processing takes 6 to 8 weeks, after which you receive a letter with your nine-digit ITIN.
• As soon as it arrives, link it to your Amex US account.
• An ITIN expires if it is not used on a return for three years, so file periodically to keep it active. Lost the letter? Call 267-941-1000 with your name, address, and birthdate.

This guide is educational and is not tax advice. For your specific situation, talk to a tax professional.

Now comes the patient part. Your first Amex is reporting to the US bureaus, and you want enough history before other issuers will say yes. A few habits make a real difference here.

• Add one or two more Amex personal cards in the first 3 to 6 months. Each one adds depth to your file.
• Amex business cards do not count toward Chase's 5/24 rule, so you can pick up a Business Platinum or Business Gold for the bonuses without hurting later Chase applications.
• Keep utilization around 5 to 10 percent across your cards. Low utilization signals that you handle credit well.
• If you can visit a US branch, open a Chase checking account. A banking relationship meaningfully helps your approval odds down the road.

Chase is the goal for most people. Ultimate Rewards points are wonderfully flexible and the co-branded hotel cards are best in class. Chase is also the pickiest issuer, so it pays to be ready before you apply.

What Chase looks for

• At least 12 to 18 months of US credit history
• A score above roughly 700, which you can track on Credit Karma US
• Ideally a Chase banking relationship

The 5/24 rule

Chase will decline you automatically if you have opened five or more personal cards across all issuers in the past 24 months. That is the whole reason we leaned on Amex business cards earlier, since those do not count toward 5/24.

Good first Chase cards are the Sapphire Preferred (a great starter), the Ink Business Preferred (does not count toward 5/24), and the Chase Aeroplan card (handy for Canadians).

Once Chase is on board and your history is solid, the rest of the market opens up.

• Capital One. Usually wants around three years of history, with a strict limit of one application every six months. The Venture X makes it worthwhile.
• Citi. The Strata Premier is excellent, and ThankYou points transfer to a strong set of airlines including Air Canada Aeroplan.
• Bank of America. The Alaska Airlines card is a long-time favourite. Apply in branch or by phone if you are using an ITIN, since their online system does not always handle ITINs well.

From here it is about steady habits. Pay in full every month, keep your accounts open, and space out applications. A mature profile earns you better approvals and higher limits over time.