Banks and Credit Unions
On-Campus Credit Union
- Caltech Employees Federal Credit Union (CEFCU) • 515 S. Wilson Avenue, Pasadena
Local Financial Institutions in Pasadena
Bank of America • 880 E. Colorado Boulevard, Pasadena
BMO • 300 E. Colorado Boulevard, Pasadena
Chase Bank • 860 E. Colorado Boulevard, Pasadena
Citibank • 285 S. Lake Avenue, Pasadena
City National Bank • 89 S. Lake Avenue, Pasadena
U.S Bank• 2355 E. Colorado Boulevard, Pasadena
Wells Fargo • 82 S. Lake Avenue, Pasadena
In the United States, banks and credit unions offer a variety of financial services including checking and savings accounts, debit cards, electronic bill pay, and wire transfers.
OPENING A U.S BANK ACCOUNT. To open a U.S. bank account, you must provide identification, such as a passport. Some institutions will require an address verification such as a rental agreement or utility bill. You do not need to provide a Social Security Number (SSN). Consult with your bank in your home country to learn if there are affiliated banks in the United States. It is typically easier to do money wires (money transfers) when there is an affiliation.
Caltech has its own credit union with locations on campus and near JPL. To open an account in the Caltech Employees Federal Credit Union (CEFCU), you just need to deposit $10 into your new account. An SSN is required to apply for a credit card.
CHECKING ACCOUNT. A personal checking account is a popular way to manage your money. You will have easy access to the funds in your account via checks, debit card, or online bill pay. Banks may charge fees for checking accounts, but fees can vary or may be waived, depending on the particular type of checking account.
CHECKS. Purchases made with paper checks are withdrawn from your checking account within a day or two, as soon as they are posted by the store.
SAVING ACCOUNT. Money in a savings account earns interest from the bank or credit union. You may have limited access, such as a certain number of withdrawals per month, to the funds in your savings account. There may be a minimum balance required for a savings account.
DIRECT DEPOSIT. Caltech and JPL students and scholars are encouraged to participate in automatic payroll direct deposit to allow electronic deposit of your paycheck in your personal checking or savings account. Instead of a physical paper check, you will receive an earnings statement which reflects the same information that would have been shown on your paycheck. Employees who have a savings or checking account with almost any bank or financial institution in the United States are eligible to participate.
ATM CARD. An ATM card is used to withdraw cash from an ATM (Automatic Teller Machine). You cannot use an ATM card for purchases. You may incur fees when using an ATM not affiliated with your bank or credit union. At an affiliated ATM, you can check your account balance or make a cash or check deposit too.
DEBIT CARD. Purchases made with a debit card are withdrawn from your checking account the same day. Be aware of possible fees you could incur for using your debit card for ATM withdrawals at a bank other than your own. You can use a debit card to withdraw cash or deposit money at an ATM (Automatic Teller Machine).
CREDIT CARD. The best way to establish credit (and start a credit history) is by having a credit card account. Please visit the section Credit Card and Credit History, below. An SSN is often required to apply for a credit card.
IDENTIFICATION. When writing a paper check or using your debit card, you should be asked to show a photo I.D. (identification). A passport, California driver's license, or California identification card is sufficient.
SENDING MONEY ABROAD. Banks charge fees when sending money from abroad to the United States and from the United States to abroad. Transferwise is a website that has been recommended by members of the Caltech international community.
Avoid common scams
Phishing scams
Phishing scams attempt to trick people into providing passwords or other sensitive information by imitating legitimate websites and legitimate email messages. Phishing attempts have become increasingly prevalent and more targeted. IMSS is implementing new email security measures to counter these attacks. You can help protect yourself and your coworkers by knowing how to recognize a scam.
Imposter/gift card scams
The criminal looks at public information such as directories and org charts to select a faculty or staff member to impersonate. The first contact is often a short message such as "Are you available?". A reply from the victim results in follow up messages culminating with the request to buy gift cards.
Bank scams
Bank scams require that you share personal financial information with a scammer, install malware on your devices, or use unverified checks and other banking material.
Here are some of the common ways a bank scammer will target you:
- Send you fake checks that legally bind you to some action.
- Send a spam email or fake text message that requires you to respond with a log-in code or with a link to download malware.
- Get you to share your credit card number or bank account information on a phishing website.
- Pretend to be a bank representative and ask for your account number over the phone.
- Try to gain remote access to your online banking platform through malware or viruses.
- Buy your banking information on the Dark Web.
Additional Resources Here: /avoidscams
The Child Care Assistance Program at Caltech (CCAP at Caltech)
Caltech recognizes that childcare costs impose a financial burden, thus provides the Child Care Assistance Program (CCAP) that awards eligible applicants up to $5,000 per year to help defray childcare costs. Awards are available to eligible faculty, postdoctoral scholars, students, and campus staff with dependent children ages 10 years and under, when both parents work. Applications for this program are accepted annually, usually in September, for the school year that begins in the fall. New hires must apply for CCAP within 30 days of their Caltech start date. For questions about the program, contact CCAP
The Child Care Assistance Program at JPL (CCAP at JPL)
As the Jet Propulsion Laboratory uses NASA funding, the CCAP program is open to JPL employees only. The awards are paid directly to the individual childcare providers on a monthly basis. Awards are are granted on a "sliding scale" based on the age of the child and total household income. For updates and more information, contact JPL Human Resources directly.
Other Additional Funding Sources from the Graduate Studies Office: please click here
A Bit of Vocabulary: What are Spending Accounts?
A Spending Account is a benefit that lets you set aside pre-tax dollars through automatic payroll deductions throughout the year. Participants can use the tax-free money in your account to pay for eligible expenses.
-> Health Care Spending Account is for a wide range of eligible health care expenses for yourself and your dependents (even if they are not covered by a Caltech plan).
-> Dependent Day Care Spending Account is for eligible dependent care expenses to allow you to work or for your spouse to work or be a full-time student.
The best way to establish credit and start a credit history is by having a credit card account. If you have just arrived in the United States, the best place to apply for a credit card (once you have your social security number) is the CEFCU, because there are specific credit card programs available only to Caltech and JPL students and scholars. Your affiliation gives you a credit advantage, and the CEFCU offers lower interest rates than most other banks.
Credit card balances should always be paid in full on or before the due date. The credit card companies pay for your expenses in advance, and you are billed for the charges once a month. If your payment is late, you will be charged a late fee and a high interest rate, and it might disrupt your credit history.
Some credit cards allow you to earn points on purchases. After a certain number of points, you can redeem them. Always read the "fine print" (terms and conditions) before you open a credit card account.
As of August 2021: If you apply for a bank credit card rather than through the CEFCU (by choice or because you are not eligible to the SSN), two of the major banks, Bank of America and Wells Fargo, confirmed that an Social Security Number (SSN) is not needed in order to apply for a credit card. They may ask for proof of residency or a school ID (a school identity card) at most for eligibility. If the person chooses to take this route, it's recommended to call the bank ahead of time to confirm what documents are needed.
Chase, U.S. Bank and Citi require an SSN to be eligible to apply.
The Caltech Employee Federal Credit Union (CEFCU) requires an SSN to apply and obtain a credit card.
Other options for fund access include opening a CEFCU savings account (does not require an SSN) and having parents wire money from their home country into the Caltech student/scholar/staff account. Student/scholar/staff can walk into the branch, Monday-Friday from 9am to 4pm, or get an ATM (Automated Teller Machine) card to withdraw money at any time. There are two ATM's on the Caltech campus and there are plenty of ATM's around Pasadena that accept the CEFCU card.
If the student/scholar/staff is not interested in these options, they may want to consider applying for a credit card or obtaining a debit card from their home country to use in the U.S. They should also review additional charges and fees with their home bank, as those can add up when using abroad.
Building Up a Credit History with a Department Store's Credit Card: You will begin to build credit history with a department store credit card without beforehand having a credit card from a bank. For example, Target is a great retail card to have—with $500 credit to charge and pay off monthly. However, in order to be eligible for any credit card, a social security number (SSN) and U.S. based address are needed. If under the age of 21, you must show sufficient income to repay credit card balances. For more information about openeing a credit card in a retail store: https://www.consumerfinance.gov/about-us/blog/six-tips-when-offered-retail-store-credit-card/
It is recommended that when applying for your first credit card, you choose between a student credit card or a secured credit card. CEFCU offers a student Platinum Mastercard with limits for those who do not have any credit history. Please note, the applicant must have a social security number in order to apply for a CEFCU student credit card. Students under the age of 21 will need a co-signer, unless they are able to prove sufficient income to repay the credit card.
The Ideal Credit: the goal is to have a good mix of credit and a strong history of on-time payments. The ideal credit will include a mortgage, car payment, bank card and retail card. If you have a new credit, the mortgage and car payment eligibility will require more time to be established but bank cards (like the CEFCU Mastercard) and retail cards such as Target, Macys, Big 5 are a great start.
If you want to know more about Credit Scores in Today's Consumer World, we have inserted the Presentation by the Caltech Employee Federal Credit Union (CEFCU) regarding the Credit CARD Act of 2009.
The law restricts credit cards to anyone under the age of 21years old. However, there are two exceptions. An adult younger than 21 can get a credit card if:
- A parent or other adult co-signs on the accounts and takes responsibility for paying the bills.
- If the young adult can show proof of income or other means of repaying the card loans:
Option 1: With a job, even a part time job, apply for a low-limit credit card. Spend with it occasionally. Never carry a balance. Pay on time
Option 2: Apply for a secured credit card. Require a deposit or link to a savings account that's usually equal to your credit limit. Same rules as above apply.
Option 3: Become a co-signer. Open an account as a joint owner. Both are responsible to repay the balance. Activity is reported to credit bureau to help build credit history.
Option 4: Become an authorized user. Authorized user can make purchases with the card, but they are not on the hook for payments. Still reported, but FICO credit scoring model gives less weight to authorized user activity because they are not ultimately responsible for paying.
Credit Card Musts
- As soon as you sign up for your first credit card, you begin to build up payment history and credit history length by making timely payments.
- Pay bills on time. Every account should be set on AutoPay — even if it's the minimum balance.
- Do not spend close to your credit limit every month.
- Change Spending Habits. Deactivate Instagram for a few months, stick to a lean budget, review monthly payments.
- Apply for a 2nd or 3rd credit card only when you need it. Match your lifestyle to your credit card.
APR (Annual Percentage Rate)
- You may have several different finance rates on one card — one for balance transfers, one for cash advances, etc.
- The lower the rate, the less the cardholder will pay in interest.
- Credit card companies can change the APR, even if the rate is "fixed," which is one reason to check your statement monthly. Look for change-in-terms notices.
- Beware of penalty rates.
Late Payments
- Although it may be fewer than 30 days late, a late payment on a credit card can be reported as late to the credit bureaus and impact your credit score.
- Late payment fees range from $20.00 to $45.00 and up.
- Late payments can also impact your interest rate in the form of a penalty fee.
- Missing payments or carrying too much debt can hurt your credit score. But did you know that it's a mistake to fill out too many credit card applications? There are 2 kinds of inquiries: hard and soft.
* Soft inquiry: NO adverse effect on your credit score.
* Hard inquiries: Result of actions YOU take.
Best Practices
- Stick to 2 to 3 cards (VISA, Mastercard, American Express, Discover).
- If you carry a balance, keep it under 30% of the available balance.
- Monitor your statements for unusual activity and accuracy.
- Pay on time.
- Never be afraid to ask.
- Review your credit annually.
- BEWARE OF SCAMS. HIGHLY SOPHISTICATED. NO RECOURSE.
The Rise of Financial Tech (FinTech)
- Financial tech companies have emerged in recent years and adapted online lending, banking, payment processing and credit.
- Relative to the numbers, millennials open more loans with FinTechs than any other age group.
- FinTech providers are working with several types of credit channels to help make lending "easier" for consumers. Using alternative data reports:
- 80% of lenders rely on a credit report (FICO, Vantage Score) to make a credit decision.
- 20% use alternative credit data to further evaluate a consumer for a more rounded view of their credit and payment history.
- This is in the form of cell phone bills, rent and utility payment history and short-term loans.
- As well, other trending data and attributes such as social media.
Peer-to-Peer Lending - Upstart
- Uses alternative data such as education, employment history and whether applicants know their own credit score to underwrite and price loans.
- After five years of training its algorithms, it now approves 47% of loans without human intervention and with some of the lowest default rates in the industry.
Peer-toPeer Lending - Affirm
- Makes instant 3, 6 and 12-month loans for purchases from 1,500 online merchants.
- A handful of sellers subsidize 0% rates, but most loans carry annual interest rates of 10% to 30%.
- More than 1 million loans issued. Partners include Wayfair and Expedia.
CREDIT HISTORY Credit history refers to a record of how a person manages financial responsibilities. A good credit rating is given to people who pay their bills on time. In the United States, companies use the credit score to evaluate risk. For example, a bank will give a car loan to someone who has a good credit score and reject a loan application from someone whose credit score is low.
Additional Resources
Spending Accounts, refer to Benefits
Social Security Number and Taxes, refer to Taxes
Setting a Budget, refer to Budget
How to Avoid Scams, refer to Avoid Common Scams
DISCLAIMER: The information provided on this website is for general information only. Caltech does not endorse or recommend any of the organizations listed.