No credit history? No problem! Get your first credit card now!

Congratulations Ananya! She, a recent graduate, just landed her first job. Excited about her newfound independence, she’s eager to manage her finances effectively. And while debit cards offer a convenient way to access funds, she wants to get her first credit card.

Should she get a credit card?

Credit cards are a great tool for managing finances, but they need to be used wisely, especially for someone new to the concept of credit. Read on to know how Ananya, or anyone else in her shoes, can get their first credit card and use it responsibly.

Why credit cards?
 

A credit card allows you to make purchases without having the funds immediately available in your bank account, offering more flexibility than a debit card. Here’s why you should consider getting your first credit card –

• Buy now, pay later

Let’s say you need a new phone, but don’t have the cash upfront. With a credit card (unlike debit cards, where money is directly withdrawn from your account), you can

• Enjoy a grace period (interest-free period) of 45–60 days
• Buy now and pay later (deferred payment)

This gives you time to save up the money to pay it off in full without any extra charges.

• Incentives

Credit cards come with incentives like reward points, cashback, and offers. You can earn these on everyday purchases, like groceries or petrol, add them up, and redeem them against purchases or vouchers.

• Big purchases made easier

Need a new washing machine? With the EMI facility on your card, you can split the cost into smaller monthly payments (instalments) that fit your budget.

• Convenience

Carrying a credit card is safer and easier than carrying a lot of cash. Plus, you get a detailed record of your spending each month, which can help you track your budget.

• Building a good credit score

Your CIBIL score is a three-digit number reflecting your creditworthiness. Using your credit card responsibly and paying your bills on time helps build a good credit history. This can be important when applying for loans in the future, like a car loan or a home loan.

However, if, like Ananya, you are just starting out your journey, you may not have a credit score yet. It becomes a hurdle for obtaining your first credit card. In such cases, secured credit cards come to your rescue and help you build your credit history. They require collateral, often in the form of a Fixed Deposit (FD).

Why FIRST WOW! Credit Card?
 

The FIRST WOW! Credit Card is a secured credit card issued by IDFC FIRST Bank. Unlike regular credit cards, it doesn’t require a credit score or income proof for approval. Instead, you need to invest in an FD and get up to 100% of your FD amount as your card’s credit limit.

The application process for getting your first credit card is a breeze. Just follow these steps –

• Visit the IDFC FIRST Bank official website and navigate to the Card sections
• Select FIRST WOW! Credit Card and click on ‘Apply Now’
• Enter your details
• Validate the OTP and submit
• Enter your address
• Proceed to open a fixed deposit linked to your credit card

Soon you will have your FIRST WOW! Credit Card, one of the best credit cards in India, is at your fingertips.

What are the eligibility criteria?
 

To be eligible for the FIRST WOW! Credit Card, you will need to meet the following criteria –

• Be over 18 years of age
• Be a resident of India with a current and permanent address
• Create an FD with IDFC FIRST Bank that meets the following criteria –
  • Minimum deposit of ₹5,000
  • Deposit must be in cumulative, re-investment, or auto-renewal mode

While you don’t need income proof and credit history for this card, the bank may perform some internal checks to determine your eligibility for your first credit card.

What are the benefits for first-time users?
 

The FIRST WOW! Credit Card is a great option as your first credit card because it offers several benefits, including –

• Zero hassle application

Here’s why –

• No documentation to apply for the card
• No joining fees
• No annual fees since it is a lifetime free credit card

These features on your first credit card make it easy to start building your credit history without any extra costs.

• Rewards

You get –

• An attractive interest rate of 7.5% p.a. on your fixed deposit
• 4X reward points on every spend of ₹150, which never expire
• Exciting offers at over 300 retail stores and 20% off at over 1,500 restaurants
• Additional roadside assistance worth ₹1,399 up to four times per year
• Personal accident cover of ₹2 lakhs and lost card liability cover worth ₹25,000
  
  

• Lower interest rates

Since it is a secured card, the FIRST WOW! Credit Card charges lower interest rates. It saves money on interest charges if you carry a balance on your card.

• EMI transaction

You can convert transactions above ₹2,500 into convenient EMIs. You will also get 5% cashback on purchases, up to ₹1,000 on your first EMI transaction. This is a great way to save money on your first purchase using EMI on credit card facility.

You can leverage these credit card benefits to build your credit score, earn rewards, and enjoy exclusive discounts while making purchases.

How to use your first credit card responsibly?
 

While a credit card is a powerful tool, if not handled carefully, it can lead to a debt trap. Here’s how to use it wisely and avoid common pitfalls –

• Avoid impulse purchases

Before you swipe your card, take a deep breath and ask yourself, “Is this a need or a want?” If it’s a want, consider saving up for it instead of swiping your card.

• Pay it back in full

This is the golden rule. Treat your credit card like a debit card, only buying what you can afford to repay each month. While paying the minimum is better than nothing, it keeps you in debt for longer. Aim to pay your entire balance each month, which will prevent interest charges from snowballing quickly.

• Track your spending

Download your bank’s app or set up alerts to monitor your spending. This helps you stay on budget and avoid overspending.

• Don’t max out

Your credit limit is the most the bank will lend you. It's tempting to spend it all, but resist! Experts suggest keeping your balance below 30% of your limit. This keeps your credit score healthy (important for future loans!).

How to build a credit score?
 

Here’s how to build and maintain a positive credit history with your­ first credit card –

• Always pay your credit card bill on time
• Keep your credit card balance below 30% of the limit to show responsible borrowing
• Use your credit card regularly for small purchases and pay them off in full each month to build your credit history
• Apply for new credit cards only when necessary to avoid lowering your score with inquiries
• Don’t cancel your first credit card, as cancellation harms your credit score

Develop your financial future!

This comprehensive guide will help Ananya, and anyone else looking for their first credit card, understand the process. With financial discipline and the knowledge, you’ve gained here, you can manage your card responsibility. The FIRST WOW! Credit Card, with its focus on responsible credit building, is a great option as a credit card for salaried individual who just started earning. Apply now to kick