Here’s the frustrating part: to get credit, lenders want to see a credit record, and to get a record, you need credit. It’s a normal position for students, people in their first job, and anyone who’s always paid by cash or UPI. You have a few sensible ways out, and also a few expensive ones to avoid.
What your report is telling you
Your score may show as NH, NA or -1 rather than a three-digit number. According to CIBIL, an NA or NH score isn’t negative. It generally means one of three things:
- you have no credit history, or not enough of one to score
- you’ve had no credit activity in the last couple of years
- you hold only add-on cards, with no credit exposure of your own
Check first with your free credit report, since a report may exist even if you don’t know about it. Paying rent, phone bills or subscriptions on time is good discipline, but don’t assume it will build your credit history. Only reported credit normally does that.
Your options compared
| Route | How it works | Main risk | Fits best if |
|---|---|---|---|
| Secured credit card | Issued against a fixed deposit | Card interest and fees if you carry a balance; the FD can be used to clear unpaid dues | You have some savings to lock away |
| Entry-level card from your bank | Your bank assesses your income and relationship | It may be declined, and it adds an enquiry | You have a regular income and an account |
| Small consumer or two-wheeler loan | Fixed EMIs reported to bureaus | Interest and fees on something you might not need | You were going to buy this anyway |
| Add-on card | Uses another person’s limit | May not establish your own exposure | It’s convenient, but not a starting point for credit |
We don’t recommend specific issuers. Our guide to FD-backed cards explains what to compare.
A worked plan with a secured card
These numbers are only an illustration, and each issuer sets its own terms.
Suppose you book a ₹20,000 fixed deposit and get a card with a limit of ₹16,000, which is 80% of the deposit.
- Keep usage modest. 30% of ₹16,000 is ₹4,800, so you might aim to spend below that on the card in a month.
- Use it for something you were buying anyway. A mobile recharge or a utility bill, say. This isn’t the time for extra shopping.
- Pay the full statement amount by the due date. Set a reminder or auto-debit for the total due, and make sure your bank balance covers it.
- Check your report after a few months. Confirm that the card is there and the payments show correctly.
The FD doesn’t protect your credit score. If you don’t pay, you can still get late marks, and the bank may use the deposit against what you owe.
Before you apply, read the most important terms for any annual fee, joining fee, and how interest works if you pay late. Some cards charge much more than they appear to at first.
Common mistakes in the first year
- Paying only the minimum. It avoids a missed payment, but interest builds up on the rest. High-interest debt at the very start of your credit life is hard to shake off.
- Applying everywhere after one rejection. Each application can add a hard enquiry to your report.
- Going over or close to your limit. A small limit fills up fast, so a single big purchase can push your credit utilisation very high.
- Treating BNPL as a free pass. Pay-later dues can be real credit with real late fees, and a missed payment could hurt your record.
- Closing the card as soon as a better one appears. Older accounts usually help. Consider keeping your first card if the cost is reasonable.
A warning about instant loan apps
New-to-credit borrowers are a favourite target of illegal loan apps. Warning signs include asking for access to your contacts and photos, charging upfront fees, and threatening you if you delay payment. They may offer money quickly without any check at all, and their charges can be crushing.
Before borrowing, confirm that the lender is genuine, and read our guide on how to spot fake loan apps. Never share an OTP, PIN or card details with anyone who phones you about a loan. If you’ve been defrauded, call 1930 or report it at cybercrime.gov.in.
What happens after six to twelve months
Provided your record is clean, you may be able to consider a regular card or small loan around this stage. That’s a possibility, not a promise. Lenders also look at your income and existing debts, and each sets its own rules. Don’t rush to upgrade the day a score appears. Take a look at what your report says, and ask whether you need more credit at all.
Bottom line
Start small, in your own name, with credit you can repay in full. Choose a route you’d be comfortable with even if it did nothing for your score, and let time and on-time payments do the rest. Card and loan terms change, so check the current details with the issuer before you sign.
Frequently asked questions
Is an NH or NA score bad?
CIBIL says it is not a negative in itself. It usually means you have no credit history or not enough to score, no credit activity in the last couple of years, or only add-on cards. Some lenders' policies may still decline applicants who have one.
How long before I get a usable credit score?
It usually takes some months of reported credit activity before a score appears, and often six to twelve months of careful use before you may qualify for a regular card. No one can promise a timeline, as it depends on the bureau and your lender's reporting.
Will an add-on card on my parent's account build my credit?
Don't rely on it. CIBIL lists having only add-on cards with no credit exposure as one reason for an NH or NA score. A card or loan in your own name, which you are responsible for repaying, is what normally starts a history.
Should I take a small loan just to build my score?
Only if you need the item and can comfortably pay every EMI. A loan you don't need costs interest and possibly fees, and a missed EMI hurts more than having no history. Avoid unknown instant loan apps in particular.
