US Bank to Offer Credit Cards to Illegal Immigrants

The Bank of America has recently began sending out offers for credit cards to their customers who don't have a social security number - most of them in the country illegally.

In the past, people who are living here in the US without legal documentation have been able to hold checking accounts and even get approved for home loans. Now the market is extending their business by offering credit cards to those who have held a bank acoount for at least 3 months without any over-draft incidences. Illegal immigrants who were once unable to build credit in our country are now able to go that path and purchase more expensive items.

At this time, the Bank of America has held this credit card program in 51 branches in Los Angelos. LA has the largest ammount of undocumented immigrents. The company hopes to expand this offer nation wide later this year.

Offering credit to those without any credit history is risky regardless of the immigration status of the individual. But these credit cards are not cheap. They come attached with high interest rates and expensive penalties if payment arrangments are not kept. There is also an initial start up fee which helps cover some of the costs if the customer doesn't pay back their debt.

The controversy lies in whether or not those who are breaking US laws by living here illegally, should be allowed the benefit of credit as those who are citizens of our country. Advocates, including those who work for the banking company say that people come to the U.S. for opportunity and to better their lives. It can be frustrating and hard for those who are trying their hardest to support themselves and their families if they are denied financial benefits because of their legal status. Those strongly opposed to illegal immigration are upset about this as it seems to be working against the current policy.

The Bank of America is the second largest financial institution in the US as far as customers and market ratings. The bank estimates that there are close to 30 million hispanic individuals in their area of business and most of them don't even have a checking account. That includes those who are here legally. The new program of lending credit cards to practically anyone, will likely mean that more of this particular population will obtain bank accounts and enjoy the financial benefits that most americans have.

Source: MIRIAM JORDAN and VALERIE BAUERLEIN, "Bank of America Casts Wider Net for Hispanics" AOL Money and Finance. URL: http://money.aol.com/news/articles/_a/bank-of-america-casts-wider-net-for/20070213074909990001