How to Get Your First Credit Card with Low Income in India (2025 Guide)

Getting a first credit card with low income in India can feel like a closed door, but it doesn’t have to be. Many banks and card issuers now offer entry-level products, secured options, and simple paths for people who are new to credit or earn modest salaries.

With a little planning and steady habits, you can easily build a credit history, get approved for a basic card, and then move up to better cards over time. This guide will walk you through practical steps, including:

• How to check credit health
• Fix mistakes
• Pick the right starter card
• How to use a credit card to boost your credit profile

What Is Creditworthiness (CIBIL) and Why It Matters

Creditworthiness means how reliable you look to banks and lenders. In India, the best-known number is the CIBIL score (a three-digit figure between 300 and 900). A higher score means lenders see lower risk.

A score above about 700 is generally considered good and makes approval for cards and loans easier. The credit report itself (called a Credit Information Report, or CIR) lists past loans, credit cards, payment history, and enquiries. In this credit report, lenders can read all the raw data.

Why does it matter for a first credit card?

Banks and credit card companies use your credit report and score to decide whether to issue a card, what limit to offer, and whether to require extra safeguards (for example, a fixed deposit). 

For someone with little or no credit history, there are offerings like secured cards, add-on cards, or certain entry-level products with a low credit limit.

But the underlying aim remains the same: demonstrate reliable repayment and low credit hunger.

Common Mistakes People Make with Credit Card (and why they hurt)

Not paying bills on time

Missed or late card payments are the single biggest reason your credit scores may fall. Even one late payment can damage approval chances for months. Lenders follow RBI guidelines before reporting defaults. Unpaid amounts reflect in credit reports and make future approvals harder.

Using too much of the credit limit

If the applicant uses a large portion of the available limit every month, it looks like they’re dependent on credit. A high utilisation ratio can pull the score down even when payments are on time. As a rule of thumb, keeping usage well under 30% of the total limit is a sensible target.

Applying for too many cards at once

Many hard enquiries in a short period may signal desperation and can lower the probability of approval. It’s better to space applications and apply only where there’s a reasonable chance of success. The CIR records enquiries, and lenders see them.

Mini case study
Ravi is a 24-year-old with a take-home pay of ₹20,000. He has no loans, no credit card history, and rarely uses formal credit. He checks his CIR, finds no score (not unusual for first-time borrowers), opens a small fixed deposit to get a secured card, and uses the card for a predictable monthly bill (mobile recharge). He pays the bill in full every month and keeps utilisation below 20%.

After six months, his credit report shows regular repayment, and lenders begin sending pre-approved offers. This simple pattern of a predictable small spend, full repayment, and patience is the fastest way to become “credit-visible.”

Step-by-Step Guide to Getting the Credit Card with Low Income in India

This is the practical bit. Each step includes examples that the applicant can act on today.

Step 1 — Check current credit status

• Obtain the CIR and determine whether a numeric score is available. Some new borrowers simply won’t have a score yet; that’s normal. The applicant should request a free report from the official bureau or use a trusted finance app that displays a free CIBIL score.
  
• Look for incorrect accounts, wrong balances, or mistaken enquiries. Note down anything that looks wrong. Copy dates, account numbers and the exact text shown.

Practical tip: take screenshots of the CIR pages and keep copies of any bank statements that contradict the report. This makes disputes faster.

Step 2 — Fix errors or raise disputes (official route)

• If the report contains errors, dispute them with the credit bureau. TransUnion CIBIL has an online dispute form for consumers and a stated process for rectification. Follow the instructions and upload supporting documents. The bureau must respond and has timelines for corrections.
  
• If the issue involves the bank (for example, a wrongly reported loan), contact the bank’s grievance desk and ask them to confirm the correction to the bureau. RBI rules mean banks must follow a process before reporting a default. Keep records of every call and email.

Practical tip: dispute early, especially when you are planning to apply for a card. Corrections can show up in 30–60 days after the bank reports the change.

Step 3 — Adopt smart spending and repayment habits

• Start with a small, predictable monthly charge like a recurring bill, mobile recharge, or grocery run. The applicant should pay it in full before the due date. On-time full payments build the most positive impact.
  
• Keep utilisation low. Aim for under 30% of the limit; if possible, below 10% is even better. If the applicant expects a high spend for one month, they should pay the card early. The balance that gets reported at statement close is what matters.
  
• Avoid cash withdrawals on the new credit card. They attract higher interest and fees, and do not help the score.
  

Example: With a card limit of ₹20,000, keeping monthly spends around ₹2,000–₹6,000 (10–30%) and repaying fully shows both restraint and reliable repayment.

Step 4 — Apply for the right type of credit card (options for low-income applicants)

For first cards on low income, consider these routes:

1. Secured (against Fixed Deposit)

Several banks allow a credit card against a pledged FD. The FD remains an asset and usually earns interest while it supports a card limit. This is ideal for someone with little formal income proof but some savings.

2. Entry-level / starter cards

Some banks issue low-fee or no-fee starter cards aimed at first-time users or low balances. For example, SBI’s Unnati card targets new-to-credit customers and has a low cost structure and easier eligibility for many retail customers. These cards sometimes accept a low average balance as proof of a relationship.

3. Add-on / supplementary cards

If your husband or father has a credit card, you instantly get an add-on card. This gives immediate access to credit while the applicant builds their own record. The primary holder remains legally responsible, so it works best when the primary trusts the add-on user.

4. Pre-approved / co-applicant routes

People with bank relationships may receive pre-approved offers. Sometimes, a co-applicant or small salary top-up via employer documentation helps meet minimum income thresholds. Industry lists show entry-level cards often state monthly income expectations in the ₹25,000–₹30,000 band. But secured and Unnati-style routes lower the practical barrier.

Practical tip: apply only where eligibility is realistic. A rejected application creates a hard enquiry; several rejections in quick succession reduce approval chances.

Step 5 — Track progress monthly

Note the statement closing date and when the bank reports to bureaus. Improvements usually reflect once the lender reports positive behaviour. Many experts say changes can start showing in 30–60 days, but meaningful improvement often takes 3–12 months of consistent behaviour.

Use an app or a simple spreadsheet: record statement balance, payment date, running utilisation, and any rewards. If a dispute is pending, record dates and correspondence.

Tools and Resources That Can Help

• Official TransUnion CIBIL

Here, you can get free score pages and a consumer dispute form. Start here to get the CIR and learn about score drivers.

• Moneyview

This is an Indian app that offers free monthly credit-score checks and a credit-tracker feature. Useful for simple monitoring.

• ET Money

It’s a widely used finance app that also shows credit health and has tools for budgeting and bill reminders. Good for combining investment and credit tracking.

• Bank product pages

For secured cards and entry-level products, check issuer sites (for example HDFC’s card-against-FD page, SBI Card Unnati brochure). These pages explain eligibility and the documents required.

• Comparison sites

You can go to Paisabazaar, BankBazaar to apply for entry-level cards within the typical income bands; helpful for choosing the right starter card.

FAQs about Getting a First Credit Card with Low Income

Can someone get a credit card with a low CIBIL score or no score?

Yes, you can get your first credit card with a low income. The options include secured cards (against an FD), certain entry-level cards aimed at new-to-credit users, or add-on cards. Secured cards are suitable for you if you don’t have a credit history. Examples include bank FD-backed cards and starter products like SBI Unnati.

How long does it take to rebuild or build a CIBIL score?

Small positive changes may appear in the report within 30–60 days after the lender reports them. However, steady, meaningful improvements usually take several months (3–12 months) of consistent on-time payments and low utilisation. Major recoveries after defaults can take longer.

Will closing old cards hurt the score?

It can. Closing a long-held card reduces the total available credit and shortens average credit age, which may raise utilisation and lower the score. If the card has zero fees and is not causing harm, keeping it open is usually better for score building.

Final Tips to Succeed Faster

• Keep credit utilisation comfortably below 30% (and aim for 10% if possible). This helps the score and shows lenders’ restraint.
  
• Always pay on or before the due date: Even small late payments have big negative effects. Set up auto-pay or reminders.
  
• Choose a card that matches spending habits: A low-fee card for groceries or fuel is better than a rewards card that encourages overspend. Compare fee waivers and milestone benefits.
  
• Use secured or FD-backed cards to start: They’re the most reliable path for someone with low income or little formal proof.
  
• Don’t apply for many cards at once: Give gaps between applications and focus on building a single good record first.

Conclusion

Getting a first credit card on a low income in India is very possible. The sensible route is simple: check the credit report, fix errors, choose the right starter product (secured or entry-level), make small, predictable spends, and pay them off in full and on time.

Over a few months, that behaviour turns into a visible credit history and opens the door to better cards and higher limits. India’s card market has grown rapidly. There are now over 100 million credit cards in circulation, and banks offer more starter options than ever.

When ready, you should first check eligibility and compare starter cards carefully. For a quick next step, check the official CIBIL free report and dispute page, compare secured and entry-level cards on a comparison site, and then apply or request an add-on from a family member if that route exists.