Honduran immigrants have one of the strongest financial links to home of any group in the US: remittances account for more than a quarter of Honduras’s economy. At the same time, many Honduran families in the US face lower incomes and uncertain immigration status. This guide covers the essentials: banking, ITIN, credit, sending money and building a safety net.
Who Honduran Immigrants Are in the US: The Numbers
According to the Pew Research Center (2021 American Community Survey data), about 1.1 million Hispanics of Honduran origin lived in the US, up from 240,000 in 2000. About 63% (roughly 700,000) were born abroad.
| Indicator (Honduran-origin Hispanics, 2021) | Figure |
|---|---|
| Population | 1.1 million |
| Foreign-born | 63% |
| Largest states | Texas 20%, Florida 14%, California 10%, New York 8%, North Carolina 5% |
| Bachelor’s degree or higher (25+) | 14% |
| Median annual earnings (16+) | $26,000 |
| Median earnings, full-time year-round workers | $35,000 |
| Homeownership rate | 31% |
| Poverty rate | 26% |
These figures include US-born people. The pattern is clear, though: lower median earnings and a 31% homeownership rate mean that building savings and credit steadily matters more than any single product.
Step 1: Open a Bank Account
Typical requirements:
- A government-issued photo ID (a passport is accepted by many banks)
- A Social Security number or ITIN
- Proof of address
Policies vary a lot between banks and credit unions, especially for people without an SSN, so ask before applying. Credit unions are often more flexible. Until you have an account, see our guide to prepaid cards for immigrants without a bank account.
Step 2: SSN or ITIN, and a Note on Status
If you are authorized to work, you can generally apply for an SSN. If you are not eligible, but must file taxes, the IRS issues an ITIN through Form W-7. An ITIN is for tax purposes only: it does not authorize work or provide Social Security benefits. ITINs can expire, so read our ITIN renewal guide.
TPS: why financial planning matters now
Many Hondurans in the US have held Temporary Protected Status (TPS). This area is changing quickly. According to a JD Supra legal summary, a federal district court vacated the government’s termination of Honduras TPS on December 31, 2025, but on February 9, 2026, the Ninth Circuit granted DHS a stay pending appeal. The summary reports that, while the appeal proceeds, the termination is back in effect, and USCIS has updated its Honduras TPS page to say prior holders no longer have work authorization based on TPS.
Legal situations like this can change again. Check USCIS.gov directly and talk to a licensed immigration attorney or an accredited representative about your own case. Never pay a “notario” who promises to fix your status.
Why this matters financially: if your income could change suddenly, an emergency fund, low fixed expenses and avoiding high-interest debt become more important than ever.
Step 3: Build Credit From Zero
Credit history from Honduras does not carry over, so you start with an empty file.
| Option | How it works | Best for |
|---|---|---|
| Secured credit card | Your deposit becomes your credit limit | First credit product |
| Credit-builder loan | On-time payments are reported while savings accumulate | People who prefer a loan structure |
| Authorized user | A relative adds you to their card | Those with a family member with good credit |
Compare real options in our guides to secured cards vs. credit-builder loans and credit cards for ITIN holders or no SSN. Learn how credit scores work and how to dispute errors.
A caution: with uncertain income, don’t take on a credit product you can’t comfortably pay. A missed payment hurts a new file more than having no file.
Step 4: Sending Money to Honduras
Remittances are the backbone of many Honduran households. According to Honduras’s central bank figures reported by Revista EyN:
| Remittances to Honduras | Figure |
|---|---|
| 2025 total | US$12.212 billion |
| 2024 total | US$9.743 billion |
| Increase | +25.3% (+US$2.469 billion) |
| Share of GDP | More than 25% |
| Share from the United States | 98.46% |
Nearly all of this money comes from the US, which makes Honduras unusually dependent on it. For you, that means a few practical things.
The new 1% US remittance tax
Since January 1, 2026, the US applies a 1% excise tax on certain remittances. According to a University of Miami law review summary, it mainly targets cash-based or physical transfers, and most bank-account and card-funded digital transfers are exempt. Sending from your bank account or debit card is generally the way to avoid it. Confirm with your provider.
How to compare transfer services
- Fee plus exchange rate (the rate is often the larger hidden cost, since Honduras uses the lempira)
- Speed (minutes vs. days)
- Receiving options (bank deposit, cash pickup, mobile wallet)
- Funding source (bank or card vs. cash)
We don’t list specific providers because fees change often and we couldn’t verify them independently.
Don’t let remittances crowd out your own savings
Sending money matters, but so does protecting your own stability. Decide on a fixed monthly amount for family and a fixed amount for your own emergency fund, so a bad month doesn’t force you into debt.
Step 5: Taxes
Filing a federal return creates a record of income and residence that supports credit and other future applications. Use IRS-credentialed preparers or the IRS VITA program if you qualify, and never sign a blank return. Keep copies of everything.
Step 6: Long-Term Goals
Emergency fund. Start with a small automatic transfer each payday, in an account separate from daily spending. Aim first for one month of essential expenses.
Housing. Only 31% of Honduran-origin Hispanics owned their homes in 2021 (Pew). Some lenders serve ITIN borrowers; see our guide to mortgages with an ITIN.
Work visas. If you hold an H-1B, see credit cards for H-1B holders.
Common Mistakes to Avoid
- Paying “notarios” or unlicensed advisors for immigration help
- Sending cash instead of using a bank-funded transfer
- Taking high-interest loans to cover remittances
- Paying “credit repair” fees up front
- Missing a payment on a new credit file
Quick Checklist
- Bank or credit union account opened
- SSN or ITIN secured
- Immigration status checked with a licensed professional
- One credit-building product active (only if affordable)
- Remittances funded from an account
- Emergency fund started
- Taxes filed every year
Final Thoughts
Honduran families carry a double responsibility: building a life in the US and supporting family at home. A bank account, steady credit and an emergency fund make both easier. Consult a licensed immigration attorney and a tax professional about your own situation. This guide is general information, not legal or financial advice.
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