How to Get Your First Credit Card With No Credit History

For many people, having a credit card is a part of their lifestyle in today’s era. And why not? After all, a credit card gives them advance money. A credit card is like borrowing instant funds from a friend for your immediate needs. However, getting a credit card in India, especially your first one, is not easy. And if you lack a credit history, it becomes more difficult. Banks want a credit history to approve your card request, but you need a credit card or loan to build that history.

The good news is you can get a credit card with no income proof. The key is choosing the right card type and using it carefully.

• Opt for a secured FD-backed credit card: For people with no CIBIL score, getting a secured credit card against a fixed deposit (FD) is a great option. For this type of card, you open an FD with the bank, which gives you a credit card against it. Your credit limit will be linked to your FD amount. Being a secured low credit score credit cards, you may not even be required to provide income proof or an existing credit score.
• Get an add-on card: If any of your family members (spouse, children, sibling, or parents) have a credit card, you can get an add-on/supplementary card and enjoy the same benefits as a primary credit card. 
• Check out student cards: If you are a student, you may have additional card options specifically designed for individuals without a regular income or credit history. Some banks allow applicants aged 18 or above to apply for a no credit score credit card and do not even require income proof or previous credit history, subject to the lender’s eligibility requirements.
• Leverage existing bank relationships: Ask the bank branch where you have a savings account if they can offer you an entry-level card or a lifetime free credit card. 
• Don't apply for multiple cards simultaneously: First-time applicants often make this mistake. Do not repeatedly apply for cards to several banks if your first application is rejected. Instead, after one suitable application, wait for the response of the card issuer, and if the application is denied, try to understand why it happened before applying next time.
• Once approved, don’t use the entire credit limit: Suppose you have a credit limit of Rs. 1 Lakh for a credit card against a Rs. 1 Lakh FD, using the credit card without credit score for a monthly spend of up to Rs. 20,000 is perfectly adequate to build a credit record.
• Credit history takes time to establish: Your credit history will not be established overnight after getting the first credit cards for poor score. Keep using the card regularly, make timely payments and avoid excessive borrowing. You will see that over time you have established a track record. Once that happens, you can become eligible for conventional unsecured cards.
• Make total bill payment & not just the minimum amount due: If your bill is Rs. 20,000, pay Rs. 20,000 by the due date. Don't pay only the minimum amount on your no credit report credit cards, as doing this will make your remaining balance attract substantial interest. 

Strategy for first-time credit card applicants

• Look for a credit card for someone with no credit history. You can apply for an FD-backed secured credit card or an add-on card.
• Make small but regular purchases for around a year. For instance, if you get the best fuel credit card, you can use it regularly to fill fuel in your vehicle.
• Pay the full statement balance every month, without fail. 
• Avoid cash withdrawals and converting your purchases into equated monthly instalments (EMIs) on your no CIBIL score credit card.
• Once you build a credit history, check your eligibility for unsecured credit cards.
• After using unsecured cards for a while, upgrade to cards based on your spending requirements; for instance, you can apply for the best cash back credit card if you spend more on utility bills, entertainment, or shopping.

Steps to apply for a credit card for the first time

• Check eligibility requirements: Check the eligibility for the best RuPay credit card or other cards suitable for you as per your needs.
• Prepare basic KYC documents: Keep your documents handy for the best travel credit card or any card you prefer to apply for, such as PAN Card, Aadhaar Card, photographs, address proof, income proof, etc. If you are applying for secured cards, you may not require income proof.
• Open an FD account: If choosing a secured airport lounge access credit card or other cards, open the FD account with the required minimum amount to activate your limit.
• Submit application: Apply online through the card issuer's portal or mobile app for the best shopping credit card or whatever your preference is.

Getting your first credit card with zero credit history can be difficult, but it is often the first step in building a credit score and applying for the most suitable card in future.