Archive · 6 Oct 2026
How Young Workers Can Build Credit Without Unnecessary Debt
When you start your first job, you can begin building a record of how you handle borrowed money.
You do not need to take out a big loan just to do this.
A small credit card, including one backed by a fixed deposit, may be a starting option.
Use it only for things you can afford and pay the full bill by its due date.
Some loans or buy-now-pay-later plans can also help create a credit record, but only borrow when you have a real need.
If a lender says no, find out why before applying elsewhere.
Paying on time and not using too much of your available credit can help over time.
The goal is to build good habits without putting pressure on your finances.
A secured credit card backed by a fixed deposit or an eligible entry-level card can help a first-time borrower start a credit history.
Using a card for manageable routine expenses and paying the full balance on time can support a positive credit profile.
Loans or buy-now-pay-later plans may build credit when used for a genuine need and repaid on time, but borrowing solely to create a score is discouraged.
After a credit application is rejected, applicants should understand the reason before considering products designed for people new to credit.
Experts advise avoiding maxed-out cards, unnecessary borrowing, and multiple credit applications at once.
- Who
- Young people starting their first jobs, including those with no established credit history.
- What
- Guidance on building a credit history with manageable credit products and responsible repayment.
- When
- When beginning a professional life at around age 21.
- Why
- A responsible credit history may make it easier to access credit for later expenses such as a car or home.
Build credit cautiously
Use credit products when appropriate
Borrowing to establish credit
Build credit cautiously
Do not take unnecessary debt simply to create a credit history; it can put pressure on a young borrower's finances.
Use credit products when appropriate
A credit product can help establish a record when there is a genuine need and the borrower can comfortably manage repayments.
Options for new borrowers
Build credit cautiously
Repeatedly applying to several lenders after a rejection is not advisable.
Use credit products when appropriate
A secured card or another product designed for new-to-credit consumers may be considered after understanding the reason for rejection.
- Suggested starting point
- A secured credit card backed by a fixed deposit, or an eligible entry-level unsecured card.
- Card repayment
- Pay the total outstanding amount by the due date each month.
- Credit use
- Keep spending within what can be comfortably managed and avoid maxing out a card.
- Possible alternatives
- Consumer durable loans or buy-now-pay-later facilities may contribute to credit history when repayments are timely.
- After rejection
- Understand why an application was rejected before considering products intended for new-to-credit consumers.
- Expert quoted
- Santosh Agarwal, CEO of Paisabazaar.