Want to get your first credit card but have no CIBIL score? This beginner’s guide covers everything you need to know to successfully apply for your first credit card, even with zero credit history.
Nowadays, credit cards are no longer a luxury but a necessity. It is a great financial tool that unlocks a series of benefits and privileges across shopping, dining, entertainment, travel, etc. In FY24 alone, over 16.5 million new credit cards were issued in India. Yet getting a first credit card with no credit history is still daunting for many. In this blog post, we will talk about how to get first credit card with no credit score.
So, if you’re someone looking to get a credit card for the first time to unlock a new world of rewards and facilitate building a strong credit history, this post is for you. As a beginner, choosing the right 1st credit card will not only offer you financial freedom but also the opportunity to build a strong credit history.
Why You Should Get Your First Credit Card?
A credit card is a financial tool that allows you to access funds immediately to make any purchase within the predetermined credit limit, and pay it later. It is a widely used form of payment that is accepted worldwide. Here are the reasons why you should get your first credit card
1. Building a Credit History
No credit history means no access to the best loan or credit card offers. A CIBIL score is a three-digit number ranging from 300 to 900 which reflects your creditworthiness. The higher the CIBIL score, the quicker the approval and the better deals you get when applying for a new credit card or a loan. Therefore, as a ‘New-to-credit’ borrower, you just got the opportunity to build a strong CIBIL score with your first credit card.
2. Benefits & Privileges
Credit cards come with exclusive benefits and privileges like reward points, cashback, shopping discounts, lounge access, etc. There are also various joining and annual benefits, milestone rewards, gift vouchers, fuel surcharge waivers, movie ticket benefits and much more to make every financial journey even more rewarding.
3. Interest-Free Period (Grace Period)
A credit card’s interest-free period, also known as the Grace Period, is the time between the date of transaction and the payment due date. It is usually between 18-55 days, depending on the date of transaction. When you get your first credit card, you can also enjoy this interest-free period of 18-55 days.
4. Flexible Payments
Need a new television or a washing machine? Credit cards also offer a flexible payment feature (EMI facility), thus enabling you to split the cost into small monthly payments or instalments that fit your budget.
Best Credit Cards to Start Building Credit for the First Time
If you want to apply for your first credit card with no credit history, you can opt for one of these secured credit cards that requires reasonable eligibility criteria and an easy application process. GoPaisa has listed various first-time credit card options for you to choose from.
1. IDFC First WOW Credit Card
The IDFC First WOW is the best secured credit card option you can choose as a first credit card. Unlike other credit cards, this card does not require any income proof or a credit score for approval. Also, you can apply for this IDFC First WOW credit card with a minimum FD of Rs.5000 only. The higher the amount you’ll invest in FD, the higher your credit limit you’ll get. It offers up to 100% of the FD amount as your credit card limit.
Applying for IDFC First WOW credit card is a simple and straightforward process. Just apply via GoPaisa and earn extra Rs.300 GP Rewards on your card approval.
Eligibility Criteria For IDFC First WOW Credit Card
You must meet the following criteria to get eligible for IDFC First WOW credit card:
- You must be 18 years old or above
- You are a resident of India
- Need a FD (Fixed Deposit) of Rs.5000 or above
- Deposit must be in cumulative, re-investment, or auto-renewal mode
- Bank may perform some internal checks to determine your eligibility
2. SBI SimplyCLICK Credit Card
The SBI SimplyCLICK is another best secured credit card that you can apply as your first credit card online. It is one of the most used credit cards for earning rewards on online shopping. Apart from regular rewards, the card also offers milestone based rewards, annual fee reversal and fuel surcharge for each transaction between Rs.300 to Rs.3000. You can apply for this credit card with a minimum FD of Rs.25000.
Eligibility Criteria For SBI SimplyCLICK Credit Card
The following criteria must be fulfil by you to get eligible for SBI SimplyCLICK Credit Card:
- Your age must be 18 years old or above
- You mst be a resident of India
- You need a FD (Fixed Deposit) of Rs.25000 or above
- Bank may perform some internal checks to determine your eligibility
3. IndianOil Axis Bank Credit Card
IndianOil credit card co-branded with Axis Bank is another best secured credit card best-suited for individuals with no credit history. It offers seamless benefits across IndianOil fuel purchases, accelerated rewards on online shopping, discount on movies, dining and much more. The best thing about this credit card is that you get 90% of the FD amount as your credit limit. Also, minimal documents are required for this credit card at all.
Eligibility Criteria For IndianOil Axis Bank Credit Card
The following criteria must be fulfil by you to get eligible for IndianOil Axis Bank Credit Card:
- Your age must be 18 years old or above
- You mst be a resident of India
- You need a FD (Fixed Deposit) of Rs.20000 or above
Also read, 7 Best Lifetime Free Credit Cards in India You Must Know
Eligibility Criteria You Need to Fulfil to Get Your First Credit Card
Before applying for a credit card, verify that you meet the card issuer’s eligibility requirements to improve your first credit card application approval with most banks. It will save a lot of time, and you can avoid unnecessary credit checks.
Age: To qualify for a credit card, you must be at least 18 years old, have a stable income source, and maintain a healthy credit history. While 18 is the minimum age criterion, certain card issuers prefer applicants to be at least 21 years old.
Income: Most banks and credit card issuers ask for a stable income source, with a minimum pay scale that ranges from ₹15,000 to ₹25,000 per month to get the approval.
Credit Score: No credit history, no problem. As a first-time applicant, you may not have a credit history, but maintaining a good credit score (750 or above) will increase the chances of approval.
Nationality: You must be an Indian citizen or a Non-Resident Indian (NRI) to apply for a credit card in India.
Documents Required When Applying For First Credit Card
Before applying for your first credit card in India, you must submit the following key documents along with your application. Gather all the essential documents to streamline the process.
- Identity Proof: Aadhar card, PAN card, passport, voter ID, or driving license.
- Address Proof: Aadhar card, driving license, utility bills, passport, or rental agreement.
- Income Proof: Salary slips (last 3 to 6 months), bank statements (last 3 to 6 months) or Income tax returns.
- Photographs: recent passport-size photographs.
How to Use Your First Credit Card Responsibly?
As a first-time cardholder, it is important to utilize your credit card responsibly to create a positive credit history and to avoid falling into debt. Smart usage of a credit card is the key to managing your credit card effectively:
Set a Budget: Smart spending starts with a plan. Your credit limit should not be your spending target. Before purchasing, determine how much you can manage to transact every month to adhere to your budget. A credit card is not free money. So, it is necessary to set a personal expense cap (20-30% of your credit card limit) that aligns with your repayment capacity.
Pay your bills on time: Always make credit card payments on time to avoid costly mistakes. Pay your credit card bill in full by the due date every month to avoid late fees and interest charges. Late payments can hurt your wallet, so be ensure to set an automatic payment or reminder to ensure timely payments.
Always pay in full: The golden rule of having a credit card is to always pay in full to keep your card purchases interest-free. If you are not able to pay in full in one go, try to pay as much as possible to avoid higher interest rates. In case you only pay the minimum due, you will be heavily charged with late fees, which can cost you a fortune.
Monitor your monthly statement: Most banks usually demand notification for fraudulent transactions within 30-60 days. Late reporting can make you liable for losses. Regularly review your credit card transactions to monitor your spending and any suspicious transactions. Immediately report any discrepancies to the bank to maximize fraud protection.
Avoid cash advances: Cash advances generally come with higher interest rates compared to regular transactions. Don’t go for cash advances unless it is required.
Smart card utilization: Set your credit utilization under 30% of your total credit limit. Exceeding this threshold can negatively impact your credit score. To stay under 30%, you need to know your total credit limit, and you can set SMS or phone alerts at 25% usage. Additionally, mid-cycle payments can help.
How to Build a Good Credit Score?
Want to build a strong credit card score with your first credit card? Here are some key habits to maintain a positive credit history –
- Always pay your credit card bills on time. You can set up autopay for the minimum due to avoid missing the payment.
- Try to manage the credit card utilization under 30% of the credit limit to signify to your lenders that you are a responsible borrower.
- Use your credit card consistently to make small and manageable purchases and pay them off in full every month.
- Avoid applying for multiple credit cards at once, as multiple applications can trigger a hard inquiry that can reduce your credit score.
- Account longevity is mandatory. Never cancel your first credit card – managing it for the long term strengthens the credit age, which is one of the major factors in a credit score.
Conclusion
Credit cards are great financial tools, not liabilities when used wisely. With responsible habits like timely payments and monitoring spending, they offer far more than just payment convenience.
Getting your first credit card in India assists you in building healthy financial habits while offering exciting rewards on everyday expenses. However, you can consider the card as a financial milestone and use it in a disciplined way to avoid debt. For a seamless start and to make your credit card more rewarding, apply for your first credit card with GoPaisa. GoPaisa can be a smart choice for first-time credit card applicants. Apply for your first credit card today!
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