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  Dear
Dr. Don,
Actually, my question is about credit cards.
I'm 16, I work in a bank and I want to know why I can get a credit
card in Europe at my age, but in the U.S., I have to wait until
I'm 18. I am not irresponsible with my money. I don't want a credit
card to go on shopping sprees. I want a card for two reasons: the
convenience and the ability to start earning good credit early.
Day in and day out, I see people denied for loans and home mortgages
because of bad credit. Getting a card under my parents is not an
option because their own credit is not ship-shape. So why the age
limit? Is there any way around it?
-- Emma Eligibility
 Dear
Emma,
The crux of your dilemma is that you are still a minor and your ability
to enter into a binding legal agreement is extremely limited. As a
minor child your parents remain largely responsible for your actions.
While it's clear that you are industrious and would
no doubt be responsible in your use of credit, if the credit card
companies can't hold you responsible then they're not interested
in extending credit.
You could face similar issues about having a checking
or savings account listed in just your name, but financial institutions
in some states can be more flexible on this point. A MasterCard
or VISA debit card issued by your financial institution will provide
most of the convenience you're looking for but won't build a credit
history.
You could build a credit history by being an authorized
user on your parent's credit card, but the payment history of the
credit card becomes part of your credit history. They could apply
for a new account and have you as an authorized user on that new
account with the understanding that you would be the only person
that actually used the card, but they would remain responsible for
the bill and would be able to use the credit card since it is their
account.
A secured credit card, since it almost always carries
a credit limit equal to the amount you've placed on deposit is a
possibility, although you may have to have your parents co-sign
on this as well, but it will allow you to build a credit history.
You need want to verify that the secured card provider will report
your payment history to a credit bureau -- ideally to all three
credit bureaus. Use Bankrate's credit
card search to find a secured card with terms you can live with
and discuss your ability to open an account on your own with a company
representative.
Dr.
Don,
I would like to know what is the best type of credit card to get
if your income is below $30,000 annually?
-- CJ Credit
Dear
CJ,
You want a card with a credit line you can live with, a low interest
rate and low or no annual fees. The key thing to remember is that
you still have to live within your income, even if someone's willing
to loan you some money.
Where people get in trouble is they think that making
$30,000 and having a $1,000 credit line means they can spend $31,000
this year. That may work this year, but it makes next year's budget
kind of tight. Use credit as a convenience and not as a crutch and
you'll do just fine.
Bankrate's credit
card search feature can help you find the card that's right
for you.
Don't apply all over town since every application
stays on your credit report for two years. A host of applications
makes you look desperate for credit and lenders hate lending to
desperate people.
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