New-to-credit earners can begin with a salary-card, secured card, small-ticket EMIs or BNPL. Here is how to do it safely and what to watch.
India: If you just joined the workforce and were declined a loan or card due to no credit history, you are not alone. Lenders want to see a repayment track record, not just income. Here are four practical routes beginners use to open their first tradelines and build a credit score in roughly 3 to 6 months, plus steps to boost approval odds.
Why this matters and how it works
With no prior loans or cards, your bureau file is thin or absent, so automated underwriting often rejects applications.
You build a score by opening one or two low-risk credit lines, paying on time every month, and keeping balances low relative to limits.
Positive repayments are reported to bureaus such as CIBIL, Experian, CRIF High Mark and Equifax, which helps your score form and improve.
The 4 smart ways to get started
Salary-account credit card from your bank
How it works: Ask the bank where your salary is credited. Many large banks issue an entry-level card after 1 to 3 salary credits, even with no prior score.
What to expect: A modest limit at first and limited features. Limit upgrades usually follow 6 to 12 months of on-time payments.
Tip: Set autopay for the full amount, keep utilization under 30 percent, and accept soft limit enhancements when offered.
Secured credit card against a fixed deposit
How it works: Open an FD, the bank marks a lien, and issues a card with a limit that is usually 75 to 100 percent of the FD value. You cannot break the FD while the card is active.
Why it helps: Almost guaranteed approval, immediate reporting to bureaus, and a straightforward path to an unsecured card later.
Example: Some banks offer lifetime free secured cards. For instance, IDFC FIRST Bank issues secured cards like FIRST WOW! and FIRST EARN against FDs. Features and eligibility vary by bank.
Watch-out: Revolving balances attract very high interest. Aim to pay the full statement amount every month.
Small-ticket EMI for electronics or consumer durables
How it works: Banks, NBFCs and select fintechs offer 6 to 12 month EMIs for phones, laptops and appliances. Many approve first-time borrowers with stable salaries.
Why it helps: Each timely EMI is reported and builds your repayment history quickly.
Cost note: No-cost EMIs often embed the cost in the product price or forgo discounts. Check processing fees and foreclosure charges.
Buy Now Pay Later on trusted platforms
How it works: Amazon Pay Later, Flipkart Pay Later/EMI and Tata Pay Later offer small lines that can be repaid next month or converted to EMIs.
Why it helps: These are backed by partner banks or NBFCs that usually report to bureaus, helping you establish a score if you pay on time.
Tip: Keep only one BNPL line active, opt for autopay, and avoid maxing out the limit.
Impact on first-time earners
Faster access to mainstream credit once a score appears, often within 3 to 6 months.
Better approval odds for personal loans or higher-tier cards over time.
Lower borrowing costs as your score and limit rise, provided you keep clean repayment behavior.
India has four major credit bureaus. Lenders may check any one of them, so your first tradeline needs to report consistently.
Payment history and how much of your available credit you use are the biggest drivers of early score formation.
Opening too many accounts quickly can trigger multiple hard inquiries and lower early approval chances. Start with one or two lines.
Four starter routes to build your credit
| Route | Typical starting limit | Eligibility basics | Key costs | Pros | Watch-outs |
|---|---|---|---|---|---|
| Salary-account credit card | ₹15,000 to ₹75,000 | Salary credited with same bank, stable job | Annual fee on some cards, interest if revolving | Easy if salary with large bank, quick reporting | Small limit at start, upgrades need good usage |
| Secured card against FD | 75% to 100% of FD | Create FD, lien marked | FD opportunity cost, interest if revolving | High approval odds, can be lifetime free | Cannot break FD while card is active |
| Small-ticket EMI loan | ₹5,000 to ₹75,000 | KYC, income proof, employer verification | Interest or embedded cost, processing fee | Builds score fast with 6–12 EMIs | Foreclosure or late fees can be steep |
| BNPL on e-commerce | ₹2,000 to ₹50,000 | Good platform history, KYC | Interest on EMIs, late fees | Quick access, simple checkout credit | Multiple BNPL lines can clutter your report |
Starting a credit history is simpler than it looks. Begin with one easy-to-get line, pay on time in full, keep usage low and avoid too many applications. In 3 to 6 months you should see a credit score appear and improve, which can unlock better cards and cheaper loans. Compare terms carefully, use autopay, and build steadily.
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