Proof of your living stipend should surely be enough.
However, I disagree with your parents' advice. So long as you are a person with common sense (and I know that you are), a credit card is a great tool to have. I am 22 and have used credit cards for over 4 years. My parents cosigned on my first card, but I was able to get a Discover card about 3 years ago without any help. I have an income, but it isn't a huge one. I currently have 3 credit cards and switch which one I am using based on the rewards they offer.
DO NOT EVER MAKE LATE PAYMENTS. ALWAYS PAY OFF THE BALANCE IN FULL. If you do that, there is
no reason not to have one. Not only are they immensely more convenient to use than cash, but you need to be building credit. Plus, if you get a card with good rewards (all 3 of mine have great rewards), you can do a lot with the cash back. You can also save good money by using the "online stores" that CCs offer. I am not a big spender and always spend well below my means. Even with my minimal income and spending, I rack up about $250/year in rewards. Is that a ton of money? No... but it's better than nothing at all, which is what you get by using cash!
Even as a very young person, I have a credit score in the "excellent" range. The only thing holding my credit score back is the age of my credit history--it's still very young. I'm confident that once I've had my cards for just a few more years, I will be in the 800+ score range. So, by the time I graduate dental school and actually need to be taking out non-government loans (car, house, practice, etc.), I should be able to get awesome interest rates.
Though I bet this is a long shot because they seem averse to credit cards for you (which, like I said, is what I consider to be totally unfounded), your parents could add you as an authorized user on their card. This would get you an instant credit score.
Do not even consider doing this unless your parents have EXCELLENT credit and no delinquencies. I am not an authorized user on my parents' card because I don't really need the boost in score, but I was talking to them yesterday about adding my younger brother so he could more easily qualify for a card at some point. He's just 18.
Basically, as I understand it, you can get on your parents' card for a month or two, get an excellent credit score, and then easily qualify for a card of your own. At that point, your parents could drop you as an authorized user. Your score will drop, but at that point, you'll have a card and will be able to build credit just like anyone else. Do some Google searching on this, and talk to your parents about it.
Maybe I am unusual, but I have
never been tempted to charge too much money to a credit card. I have never even come remotely close. I have never missed a payment, and I pay off everything. Also, I've read that making multiple payments throughout the month on your credit card can help boost your credit limit, so I do that, too--and I think it has worked. It's incredibly easy... though I have automatic payments, anytime I go online to check my card statement, I just click a button and it pays it.
I have credit limits that are honestly sort of ridiculous for someone with my income, but like I said, it has caused no problems for me. It is also
very helpful because my credit utilization ratio is extremely low. This is one of the biggest determinations in your credit score. You want your utilization to be very low.
My parents have helped me with my score over the years by allowing me to make purchases on my cards for things they will pay me back for, and then just transferring me the funds so that I can pay off my cards. So, instead of giving me 50 bucks for groceries, I instead just charge that 50 bucks to my card... and then they transfer the 50 bucks to my BofA account. I use the money to pay off my statement. Hassle free, especially since no cash is ever dealt with.
Unlike lots of other things in finances, credit cards are actually pretty easy to research and understand. I'd begin by making an account at creditkarma (yes, they are legit). Though they can only estimate your credit score, they are a fantastic tool and are free! I find that the score they estimate for me is always within 5-10 points of my actual credit score.
I also would apply for just one card to begin with. If you apply for a card for which you are not pre-approved, the credit company is going to do a "hard pull" on your credit history. This negatively impacts your score, but it is a necessary thing in the beginning. Conversely, if you apply for a card for which you are pre-approved, they only do a "soft pull" and your credit score is not negatively impacted. So don't just go crazy with the applications--the hard pulls stay on your credit report for 3 years, but I think they are only figured into your score for 2. I applied for a Belk card (and was approved) 2 years ago before I knew any better, and there that hard pull sits on my credit report, making me annoyed.
Once you have good credit, you'll get pre-approved offers in the mail ALL the time. I do, at least.
Sign up for something with good rewards and no annual fee. I
highly recommend the Discover it! card. (
https://www.discover.com/credit-cards/student/) The cashback bonus is fantastic (1% back on everything, 5% back in categories that revolve quarterly, and the shop discover store which allows you to get cashback on online purchases). Beginning recently, they even give you your FICO credit score for free on your monthly statement. I have had a Discover card for longer than anything else... and in the beginning, they were the only card that would approve me.
I am not a guru on this by any means, but I think credit cards--and particularly the rewards you get by using them and having a good credit score--are really interesting. Feel free to shoot me any more questions! Oh, and if you want a referral for the Discover card, I'd be more than happy to help!! I've never done it before, but I think they might actually give you money or something.
