What research shows about immigrant family finances in 2026

This page explains research. It is not financial, tax or legal advice.

Who did this research?

The main 2026 study comes from Mission Asset Fund (MAF), a San Francisco nonprofit known for Lending Circles, its zero interest, credit building loans. In a series of four posts from July 16 to August 6, 2026, MAF looked at its own applicant records from 2016 to 2024 (MAF, July 16, 2026):

• 11,220 applications from 2016 to 2024 for the income findings
• 6,390 applicants who completed an entry survey, for the findings on work and support
• Applicants from MAF and nine partner groups, in 34 states
• 66% lived in California. The median applicant was 37 years old, and 63% were women. The median household had two people and earned $43,200.

The posts do not report applicants' immigration status, so treat the results as a picture of lower income families who sought a credit building loan, from what MAF calls the low income and immigrant communities it serves (MAF, March 25, 2026). It is not a random sample of all immigrants.

Are families earning more but affording less?

Yes, for the families MAF serves. Median household income for Lending Circle applicants rose from $36,000 in 2016 to $46,000 in 2024 (MAF, Earning More, Affording Less). That sounds like progress. But after adjusting for rising prices, their buying power in 2024 was slightly lower than in 2016. Real income started falling in 2020.

Compare the typical U.S. household, as MAF reports it: income rose from $59,000 to $84,000 over the same years, a gain of almost 9% in buying power after inflation.

So the same price increases hit harder when you start with less. One family told MAF they had stopped buying meat. Another pointed to gas going from $3.20 to $5.00.

Are they falling behind their neighbors?

Yes. About 4 in 5 MAF applicants from 2016 to 2024 earned less than 80% of the median income in their area. The gap grew (MAF, Falling Behind Neighbors):

MAF says the gap came from unequal income growth, not from a change in who applied. It reports the same pattern in the Bay Area, Chicago, Houston and other places it serves, but did not publish Bay Area numbers.

This matters most in high cost places like the Bay Area, where rent and child care are set by what the median household can pay.

Is it because people are not working?

No. The research says the opposite (MAF, Finding a Way Forward):

• 84% of MAF client households had income from formal jobs from 2016 to 2024, compared with 79% of households nationally. The gap held every year.
• From 2020 to 2022, their employment rate was more than 7 points above the national average.
• Half relied on more than one source of income.
• Self employment income was more than 2.5 times the national rate of 10%.
• Families got financial help from relatives and friends at 4 times the national rate. In 2021, nearly 1 in 10 MAF families relied on it, compared with about 1 in 60 nationally.
• 4 in 5 said they had high or complete confidence their future would improve.

The picture is of families who work, start side businesses and lean on each other. They are not short on effort. They are short on wages that keep up and on fair financial tools.

Why is credit harder to get?

National data points to a few reasons.

Many people are outside the banking system. In 2023, 4.2% of U.S. households, or 5.6 million, had no bank or credit union account. The rate was 9.5% for Hispanic households and 1.9% for white households. Two thirds of unbanked households relied only on cash (FDIC, 2023 survey). Cash payments for rent or bills usually do not build credit.

Some people have no credit record at all. The Consumer Financial Protection Bureau (CFPB) estimates that 2.7% of U.S. adults, about 7 million people, were "credit invisible" in 2020, meaning no credit record at the national credit bureaus (CFPB, June 2025). That is lower than older estimates. The CFPB did not break it down by immigrant status.

Many tools ask for a Social Security number. The official free credit report site asks for one. Some card companies accept an ITIN and some do not. See How to build credit without a Social Security number.

Expensive lenders fill the gap. MAF's earlier secret shopper study of San Francisco's Mission District found fringe lenders outnumbered bank branches four to one, with loan costs (APRs) ranging from 14% to 460% across lender types (MAF, Just the Financial Facts, Please). That study is older. The point still holds: when cheap credit is missing, people pay more to borrow.

What 2026 changes add pressure?

A few federal changes affect immigrant families' money this year:

• A 1% federal tax on money sent abroad with cash, money orders or cashier's checks began January 1, 2026. Money sent from a U.S. bank account or with a U.S. debit or credit card is not taxed (26 U.S.C. 4475). See The new federal tax on money sent abroad.
• SBA 7(a) and 504 business loans have required every owner to be a U.S. citizen or national since March 1, 2026 (SBA notice).
• The federal Child Tax Credit for 2025 and later requires a Social Security number valid for work for the parent (or one spouse on a joint return) and the child. See Money and taxes: the complete guide.

What helps, according to the research?

MAF's own data and other studies point to a few things that work:

• Credit building loans that report to the bureaus. MAF reports that Lending Circle participants raised their credit scores by 168 points on average. That is MAF's own figure. See How a lending circle can help you build credit.
• Clear loan costs. MAF's tests found people read loan costs 3.5 times more accurately using a simple label than with standard loan papers.
• Community support. Families already share money through tandas and relatives. Formal programs that build on that can make it count toward credit.

MAF says hope alone cannot overcome these barriers. It takes fair tools and support around it.

What can I do now?

Pick the one that fits your month:

1. Open a free or low cost bank account if you do not have one, so you can save safely and pay by debit. See Open a bank account with an ITIN or consular ID.
2. Start building credit with a reported credit builder loan or secured card. See How to build credit without a Social Security number.
3. Check your credit report for mistakes and stop debt collector abuse. See How to fix mistakes on your credit report and deal with debt collectors.
4. Claim your tax credits. California's CalEITC and Young Child Tax Credit are open to ITIN filers. See CalEITC and Young Child Tax Credit with an ITIN.
5. Get food and bill help so you do not borrow at high cost. See Food help.
6. Make a family money plan for emergencies. See Money steps to take first: a simple worksheet.

Questions people ask

Does this mean immigrants are bad with money? No. The research shows high work rates, side businesses and careful planning. The gap comes from wages, prices and access to fair credit.

Does the study prove what happens to all immigrants? No. It covers people who applied for a credit building loan. It is a strong look at one group, not a national census.

Where can I talk with someone for free? See Where to get free, trusted help with money and credit. In the Bay Area, Mission Asset Fund is in San Francisco at 3269 Mission Street.

Who can help?

Contact them to confirm hours, languages and openings. Being listed here is not a referral or a promise of service.

• Mission Asset Fund (San Francisco, with online programs): Lending Circles and free financial courses. missionassetfund.org
• California Department of Financial Protection and Innovation: complaints about lenders, 1-866-275-2677. dfpi.ca.gov
• 211, where it is offered: local help with bills and food. 211 does not cover every California county. See 211: free help finding local services.