Best First Credit Card for Young Adults in India 2025 : Starting your financial journey as a young adult in India can feel like a big step, especially with so many responsibilities piling up. Whether you’re a college student in Mumbai or a young professional in Bengaluru, getting your first credit card is a smart way to build a strong credit foundation. A credit card isn’t just for spending it’s a tool to establish your credit history, which is crucial for future goals like renting a flat, buying a two-wheeler, or even securing a loan. With the Indian credit market growing, choosing the right starter card can set you up for success.
In this guide, we’ll explain why a first credit card matters, what to look for if you have no credit history, and our top picks tailored for Indian students and young adults. Using insights from trusted sources like Money control and Paisa bazaar, we’ve selected cards that suit beginners, focusing on low fees and easy approval. We’ll also cover how to apply, use your card wisely, and avoid common mistakes. By the end, you’ll know exactly how to pick the best first credit card for young adults in India to fit your lifestyle. Let’s get started.
Why Get the Best First Credit Card for Young Adults with No Credit History in India?
Imagine You’re 21, just finished your degree in Delhi, and trying to rent your first PG. The landlord asks for a credit check, but you have no credit history because you’ve never used credit. This is a common issue in India, where many young adults are “credit invisible.” According to a 2023 CRIF High Mark report, about 20% of Indians under 25 lack a credit profile. A first credit card can change that by reporting your payments to credit bureaus like CIBIL, helping you build a solid CIBIL score (300-900 range).
A good starter card helps you create a positive payment history, which makes up 35% of your CIBIL score. Pay on time, keep balances low, and your score can grow fast. For students or young adults with no credit, student cards or co-branded cards from banks like SBI or HDFC are great options. These often require minimal documentation, like proof of enrollment or a PAN card. Plus, many offer rewards like cashback on Swiggy orders or fuel, which align with Indian lifestyles. The goal is to use it responsibly think of it as a stepping stone to financial independence.
Cards also teach practical money skills. You’ll learn about interest rates, billing cycles, and budgeting, which are key for navigating India’s fast-paced economy. Whether you’re a student in Chennai juggling college and internships or a young adult in Pune starting your career, a no-annual-fee card with simple rewards can make life easier while building your credit.
In short, the best first credit card for young adults with no credit history in India is your ticket to a stronger financial future. It opens doors to better loan rates and gives you control over your credit story from day one.
What is Credit Scores : How Your First Card Helps Build Credit as a Beginner in India
Let’s talk about credit scores in India. Your CIBIL score, ranging from 300 to 900, reflects your creditworthiness. As a young adult, you might start with no score, which is a blank slate. A credit card kickstarts your journey by building your credit file.
Using a card responsibly boosts your score in key ways. Payment history (35% of your score) grows with timely payments. Length of credit history (15%) starts the moment you open your account. Keeping your credit utilization your balance divided by your limit below 30% is critical. CIBIL data shows that young adults who maintain low balances see their scores rise within 6 -12 months.
For students, cards like SBI’s student specific options often require only a college ID. Non students might opt for secured cards, where a fixed deposit sets your limit. Both report to CIBIL, ensuring your efforts count.
Types of Best First Credit Cards for Young Adults and Students in India
Not sure which card suits you? Here are the main types for Indian beginners.
Secured Credit Cards for Building Credit with Low Deposits in India
If unsecured cards reject you, secured cards backed by fixed deposits are a solid choice. You deposit, say, ₹10,000, which becomes your credit limit. They’re low risk for banks, so approval is easier.
Perks include no credit checks and the chance to upgrade to unsecured cards after consistent payments. Paisa bazaar notes that secured cards can boost CIBIL scores by 30- 60 points in a year with good habits.
Student Credit Cards for College Students with No Credit in India
For students in Indian colleges, these cards are designed with you in mind. Banks like SBI and ICICI approve based on enrollment proof, no credit needed. Rewards focus on student needs, like discounts on Zomato or BookMyShow.
Moneycontrol highlights their low entry barriers and offers like 0% interest on EMIs for gadgets, perfect for students.
Unsecured Starter Cards for Young Adults Starting Out in India
If you’ve got a bit of income or a fair CIBIL score, unsecured cards from HDFC or Axis Bank skip the deposit. They offer simple cashback and no fees, ideal for young professionals.
Best First Credit Cards for Young Adults in India in 2025
Based on reviews from Moneycontrol, Paisabazaar, and BankBazaar, here are our top picks for 2025. We prioritized low fees, easy approval, and rewards suited for Indian lifestyles. Rates as of September 2025.
Best for Online Shopping Rewards in India SBI Simply CLICK Credit Card
No joining fee for students, ₹499 annual fee (waived on ₹1 lakh spend), APR around 42%. Earn 10X reward points on Amazon, Book My Show, and Swiggy, 5X on other online spends, 1X elsewhere.
Pros: Low joining threshold, milestone benefits like ₹2,000 gift vouchers. Cons: High APR, rewards limited to online.
Ideal for students shopping online or ordering food delivery.
HDFC MoneyBack+ Credit Card: Best for Simple Cashback in India
₹500 annual fee (waived on ₹50,000 spend), APR ~43.2%. 10X points on Amazon/Flipkart, 5X on EMI spends, 2X on dining, 1X others.
Pros: Easy approval, fuel surcharge waiver. Cons: Modest rewards.
Great for young adults in cities like Bangalore who spend on dining and fuel.
ICICI Bank Coral Contactless Card: Best for Dining and Movies in India
₹500 annual fee (waived on ₹1.5 lakh spend), APR ~40.8%. 2X points on dining, 25% off Book My Show tickets (up to ₹100/month).
Pros: Contactless payments, lounge access. Cons: High APR.
Perfect for social students in metros loving movies and dining out.
Axis Bank MyZone Credit Card: Best for Entertainment in India
₹500 annual fee (waived first year), APR ~ 49.36%. 10X points on weekend dining, 25% off movies.
Pros: Easy approval, Paytm movie discounts. Cons: High interest rates.
Suits young adults in urban areas who enjoy weekend outings.
SBI Card Against Fixed Deposit: Best Secured Option in India
No annual fee, APR ~ 40%, ₹10,000 min deposit. No rewards but builds credit.
Pros: Easy approval, upgrades possible. Cons: No perks.
Ideal for those with no credit needing a low risk start.
HDFC Secured Credit Card: Best for Low Deposit in India
No fee, APR ~ 43%, ₹5,000 min deposit No rewards, auto limit reviews.
Pros: Low entry deposit, CIBIL reporting. Cons: No cashback.
Perfect for budget conscious beginners in India.
How to Apply for the Best First Credit Card for Young Adults Without Credit in India
Applying is simple. You’ll need your PAN card, Aadhaar, proof of income and for students, college ID. Banks like SBI and HDFC offer online pre qualification tools that don’t impact your CIBIL score.
BankBazaar suggests checking eligibility online to boost approval odds. If denied, try secured cards with fixed deposits.
Tips for Using Your First Credit Card Responsibly to Build Good Credit in India
Treat your card like cash. Set up auto-debit for full payments to avoid interest. Use apps like CRED to track spending.
Keep utilization below 30% if your limit is ₹20,000, don’t exceed ₹6,000. Pay multiple times a month if needed. Use rewards for essentials like fuel or groceries, not impulse buys. Check your CIBIL score free via bank portals.
Common Mistakes to Avoid with Your First Credit Card as a Young Adult in India
Don’t max out your card it hurts your CIBIL score. Avoid paying just the minimum due; interest rates in India are steep, often 40%+. Skip cash withdrawals fees are high. And don’t apply for multiple cards at once; inquiries lower your score.
Paisa bazaar warns that late payments can stay on your CIBIL report for 7 years.
Building Long-Term Credit: Next Steps After Your First Card in India
After 6- 12 months of good use, your CIBIL score might hit 700+. You can then upgrade to premium cards with travel or lounge benefits. Keep accounts diverse but manageable. CIBIL advises focusing on consistent habits over multiple cards.
Choosing the Right First Credit Card for Your Future in India
The best first credit card for young adults in India depends on your needs, but options like SBI Simply CLICK or HDFC Money Back+ offer great starts with rewards tailored to Indian lifestyles. Start small, pay on time, and your financial future will be stronger. Ready to apply? Check bank websites for pre qualification today.
FAQs
What is the easiest credit card to get approved for as a young adult in India with no credit history and low income?
SBI Simply CLICK and HDFC Money Back+ cards are among the easiest to get, requiring minimal income proof (like ₹10,000 monthly) or student status, per SBI and HDFC eligibility criteria.
How can college students in India apply for their first credit card without a full-time job or salary proof?
Students can apply for cards like ICICI Student Coral with just a college ID and PAN card, as banks accept enrollment proof instead of salary, according to ICICI guidelines.
Which credit card offers the best cashback rewards for everyday spending like food delivery and online shopping for beginners in India?Â
SBI Simply CLICK offers 10X reward points on Amazon and Swiggy, ideal for food delivery and online shopping, per SBI’s rewards structure.
Is a secured credit card better than an unsecured one for building credit as a first-time user in India under 25?
Secured cards like SBI Card Against Fixed Deposit are better for those under 25 with no credit, as they require a ₹10,000 deposit and report to CIBIL, ensuring score growth.
What documents are required to apply for a first credit card in India if you’re a student living in a hostel?
You need a PAN card, Aadhaar, college ID, and proof of address (like a hostel letter), as outlined by HDFC and ICICI for student card applications.
How does applying for and using a first credit card impact my CIBIL score as a young adult in India?
Responsible use, like paying on time and keeping utilization below 30%, can boost your CIBIL score by 30-60 points in a year, per Paisa bazaar, but hard inquiries may temporarily dip it.
What are the top lifetime free credit cards for young adults starting their career in metro cities like Mumbai or Delhi?
Axis Bank My Zone and HDFC Millennia offer lifetime free options with no annual fee (if spending thresholds are met) and rewards for urban spends, per Axis and HDFC terms.
Can I get approved for a credit card in India at 18 years old, and which beginner-friendly options are available?
Yes, 18-year-olds can get student cards like SBI Simply CLICK or ICICI Coral with enrollment proof; no prior credit needed, as per bank eligibility rules.
What tips should young adults follow to avoid debt traps when using their first credit card in India?
Pay the full balance monthly, avoid cash advances, and keep spending below 30% of your limit to dodge high interest (up to 43%) and fees, per Money control advice.
How to compare SBI and HDFC credit cards for beginners in India based on fees and rewards?
SBI Simply CLICK has a ₹499 fee (waivable) with 10X online rewards, while HDFC Money Back+ has a ₹500 fee with 10X Amazon rewards; compare based on your online vs. offline spending, per bank terms.
Which first credit card in India is ideal for part-time working students with monthly spends under ₹20,000?
ICICI Coral Contactless is ideal, offering 2X points on dining and 25% off Book My Show, with a ₹500 fee waivable on ₹1.5 lakh spend, fitting low budgets, per ICICI details.
What are the hidden fees to watch out for when choosing your first credit card as a young professional in India?
Beware of cash advance fees (2.5% plus interest), foreign transaction fees (up to 3.5%), late payment charges (₹300-₹500), and over-limit fees (₹500+), as noted by HDFC, SBI, and Paisa bazaar.
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