Credit cards for first timers: How to get approval and use them responsibly? | Mint

Getting the first credit card is a major financial milestone. When it is used rationally, it can help you build a strong credit history, offers rewards, and convenience to daily expenses. But when it comes to beginners, it is easy to get overwhelmed by eligibility criteria, and the risk of falling into debt.

Here’s a simple to follow guide to help you with getting approval for your first credit card and use it responsibly.

How to get approved for your first credit card

1. Check your eligibility: Before applying, check the bank’s basic requirements such as age (usually 18+), income and employment status (salaried or self-employed)

2. Start with a beginner friendly card: It is recommended to start with a beginner friendly card. You can choose from entry-level cards with low annual fees. It could be secured cards (backed by a fixed deposit) or student cards.

3. Apply with the right bank: You are more likely to be approved by a bank where you already have a savings account or salary account or banks that offer pre-approved cards based on your profile.

4. Keep documents ready: All you will need would be a PAN card. Address proof (Aadhaar/Utility bill) and income proof (salary slip or bank statement).

How to use a credit card responsibly

1. Always pay your bill in full: It is recommended not to pay just the minimum amount. Paying in full each month avoids high interest charges and helps build a strong credit score

2. Low credit utilisation: For instance, if your limit is ₹20,000, you should try not to spend more than ₹6,000 – ₹7,000 monthly. This helps maintain a healthy credit utilisation ratio, which improves your creditworthiness.

3. Set auto pay and reminders: Since missed payments can hurt your credit score, it is recommended that you allow auto-debit from your bank account. You can set calendar reminders for due dates

4. Use rewards wisely: You can use the credit card for essentials such as groceries or mobile bills and take advantage of cashback, reward points and Fuel or dining discounts.

5. Avoid cash withdrawals: Using a credit card at ATMs attracts instant interest (no interest-free period), cash advance fee. Common mistakes which first timers should avoid include applying for too many cards at once, ignoring the fine print (fees, interest rates, penalties). Overspending just to earn rewards and lending your card to others.

A credit card can be a powerful tool if used with discipline. For first timers, the key is to start simple, spend smart, and always pay on time. Over time, this helps build your credit profile and opens the door to better financial opportunities.

Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.

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