A J1 Visa is a visa given on a temporary basis to someone who is staying in the States for a particular purpose. It’s a non-immigrant visa for students, scholars, and researchers who have been to the States on an exchange program or short-term ad hoc basis.
J1 Visa Holders are in an awkward position. Their visa is one degree shy a proper work visa, and their stay in the States can extend beyond a simple visit. If a professor comes from another country to work on a research project, he or she may be in the States for more than a year trying to achieve whatever they set out to achieve. The same goes for a student: their program or exchange could extend awhile. They may need a loan to finance their stay and be in a tough position as a borrower because their stay is indefinite.
J1 Visa holders may face difficulties getting a loan for two main reasons.
1. They have no credit history or experience within the US system. This is the primary way banks determine whether a borrower is trustworthy.
2. They may not be around to pay off their loan. Loans are typically paid off in installments, and J1 Visa holders are in the US for a limited period. Banks will be wary of that fact.
It’s tough for J1 Visa Holders, too: they do not know how long they are staying and may need an auto loan, for example, to get a vehicle, which is a necessity for working in the United States. This situation may be overwhelming because the circumstances are uncertain and the J1 Visa Holder still needs to focus on whatever purpose they have for being in the US.
Some factors play in the J1 Visa Holders favor — they typically have a legitimate career or purpose for being in the States, such as being a professor or student. The esteem attached to these professions or purposes carries weight in the eyes of a lender and may compensate for some of the riskier variables. These professions come with a high income, the type of income that assures lenders that their loans will be paid.
