What is a credit card?

College student wanting to start a credit card to start building credit, what would be the best?

• Okay, so I am not just some spoiled brat who wants a credit card because I can use it to splurge and do what I want with shopping. Actually it is much more than that. I would like to start building credit and I would use it to buy things and pay it off right away(I wouldn't buy anything unless I knew I already had the money or knew I was going to be getting the money... like for instance college courses) little by little so in a few years i will have the credit to be able to move out(I live with my mom) or buy a decent car in the future. I have have a friend who has a credit card (to be honest she is deeply sheltered by hovering parents) and they got her one on purpose to start building her credit for later which I thought was a pretty snazzy idea. I know that credit card companies can be evil but if used sparingly and with brains I think I can turn it into something beneficial. I don't know a ton about credit cards but my mom does share some things with me about interest etc. And she herself isn't in the best situation with paying off cards but my fiance's parents ( basically the family that " took me in") are very good role models for displaying positive money management and credit cards etc. I feel like they could help me a lot if I use my brain. I also know that paying student loans builds credit too, but I really think this could be a plus and if I need money right away to pay for something (example my current situation: I have money to pay for classes but there is one class that has a special fee or $305 and so I totally forgot and only have money for the credits and not the fee, so I can pay it by calling my inheritance for the money but that takes a over a week to obtain but registration ends in a few days...so if I had a credit card I could pay that fee now and then request for the inheritance and then pay it in a week), so this basically sums up why I think it would be a good idea to have a credit card. The question is, which card should I get? I am looking at interest rates, something that would make sense for a student who works part-time... Also in order to use the credit card can I make big purchase right away or do I build my credit limit build as I pay for little things until I can pay for big things(ex: textbooks, classes)? Right now I am looking at" Discover for Students" and the interest rates vary between who has good credit and who doesn't (but I have no credit I don't think) ... if t here are any other good cards (even cards for like target or sears etc.) that you think would be a good fit for someone like me.

• Answer:

  Frankly, I didn't bother to read your long tale. Most of it has absolutely no bearing on credit. You should probably work on sticking to the point and not rambling. The law that went into affect a couple years ago requires that people under 21 provide proof of sufficient income to qualify for a credit card or have a parent co-sign. Cards want to see at least 12 months of work history to go with that sufficient income. If you have not credit history and no job, you are not going to qualify for any credit card. It is just that simple. If you do have a job, you may still not qualify for a regular credit card and have to start with a secured card. Your interest rate will not be low and you won't get a large limit -- those things are based on your creditworthiness. No history, no track record = higher interest and lower limit. You will also probably have an annual fee. Stick with major credit cards and forget store cards. Store cards have much higher interest rates and are limited to that particular store.