How to Build Credit History Fast ? I am Planning to get a Credit Card to my Son - Query & Discussion

[saver-user]

Any realistic idea guys?
edit - my wife with no income has a cibil score of 678 for some reason (never missed a payment) which path for her? like is it even possible to get her good cibil

 

[Umang85]

Get him a FD backed card for starters. That should jump start his credit history with timely payments for atleast 2-3 months. After that maybe get a base variant cc.
Also is your son salaried?

 

[saver-user]

Get him a FD backed card for starters. That should jump start his credit history with timely payments for atleast 2-3 months. After that maybe get a base variant cc.
Also is your son salaried?

yes he is but started working for hardly 2 months. earns well closer to 15LPA i mean its not bad for his first job

 

[Umang85]

yes he is but started working for hardly 2 months. earns well closer to 15LPA i mean its not bad for his first job

Then best would be to get a FD backed CC. And then after 2 months or so go for a Hdfc Millenia as he would have atleast 3 months payslips.

And after 5-6 months can apply for fancier cards.

 

[saver-user]

Then best would be to get a FD backed CC. And then after 2 months or so go for a Hdfc Millenia as he would have atleast 3 months payslips.

And after 5-6 months can apply for fancier cards.

how much should i back him up with like the amount matters? as construction is ongoing i think i can hardly shell out 1L in FD without risking any cost overruns in construction

 

[BVCBVC is verified member.]

yes he is but started working for hardly 2 months. earns well closer to 15LPA i mean its not bad for his first job

Which salary account he’s using? Axis, HDFC, ICICI salary accounts get pre approved credit card offers in 2-3 months. For time being take 50000 FD IDFC wow card and keep utilisation below 30%. Don’t get into fintech CC’s for now.

After getting mainstream cards 1 or 2 go for SBI Credit Card from any agent available, let him get good CL in the beginning itself without over leverage option.

 

[saver-user]

Which salary account he’s using? Axis, HDFC, ICICI salary accounts get pre approved credit card offers in 2-3 months. For time being take 50000 FD IDFC wow card and keep utilisation below 30%. Don’t get into fintech CC’s for now.

After getting mainstream cards 1 or 2 go for SBI Credit Card from any agent available, let him get good CL in the beginning itself without over leverage option.

alright.. thanks for the help mate.

 

[Umang85]

how much should i back him up with like the amount matters? as construction is ongoing i think i can hardly shell out 1L in FD without risking any cost overruns in construction

Haven't ever gone this route. But you can start with a 50k-75k FD. Use that for starters and then he can get unsecured Millenia after 2 months basis salary plus 2 months of credit history?

Just make sure to swipe and keep paying off immediately, should do wonders in pumping up that credit score. If you keep it at 0% utilisation then it will go up quicker.
Basically use the CC like a DC in the beginning.

And as he uses the CC more he can maybe get the credit limit increased.

 

[saver-user]

Haven't ever gone this route. But you can start with a 50k-75k FD. Use that for starters and then he can get unsecured Millenia after 2 months basis salary plus 2 months of credit history?

Just make sure to swipe and keep paying off immediately, should do wonders in pumping up that credit score. If you keep it at 0% utilisation then it will go up quicker.
Basically use the CC like a DC in the beginning.

And as he uses the CC more he can maybe get the credit limit increased.

alr thanks mate. i am wondering this same trick will work for my wife? she has no income has a score of 678 for some reason with not even a single delayed payment.

 

[kuchbhikuchbhi is verified member.]

alr thanks mate. i am wondering this same trick will work for my wife? she has no income has a score of 678 for some reason with not even a single delayed payment.

you can always open any account in hdfc gett pre approved offers take cc and increase credit score by less utilization

 

[saver-user]

hdfc will offer cc for no salary? i didnt quite get you

you can always open any account in hdfc gett pre approved offers take cc and increase credit score by less utilization

 

[jetesh]

Take two credit cards against FD.

Few Important Tips :

1. Consider taking advantage of an EMI offer on one of the cards. Taking a loan on a credit card can significantly improve your CIBIL score in a short period of time.
2. It is important to make payments at least 3-4 days before the due date to avoid any late fees.
3. It is important to keep credit utilization below 70%.

After 6-9 months, he may be eligible to apply for a premium credit card from any bank, especially if you have a salary account with that bank.

 

[saver-user]

Take two credit cards against FD.

Few Important Tips :

1. Consider taking advantage of an EMI offer on one of the cards. Taking a loan on a credit card can significantly improve your CIBIL score in a short period of time.
2. It is important to make payments at least 3-4 days before the due date to avoid any late fees.
3. It is important to keep credit utilization below 70%.

After 6-9 months, he may be eligible to apply for a premium credit card from any bank, especially if you have a salary account with that bank.

thanks mate will remember these

 

[kuchbhikuchbhi is verified member.]

hdfc will offer cc for no salary? i didnt quite get you

you can open regular 10k savings account and get pre approved offer for credit card in 6- 12 months

 

[Quantum]

yes he is but started working for hardly 2 months. earns well closer to 15LPA i mean its not bad for his first job

As he is salaried and getting 15LPA, ask him to check following too in his office.
Many companies/orgs have salary tie ups with banks. These banks relax many criteria for such employees/customers.
For example, for my company, an employee with even 1.5LPM salary gets Burgundy salary account.

Ask your son to check in his office (from HR/Payroll team) about the list of banks the company has a tie up with.
He can then reach out to the PoCs of these banks that are designated to serve your son's company's employees' banking requests.
These bank PoCs could help a lot in getting a good CC if he opens a salary account in the desired bank. Negotiate, get a confirmation, and then open the salary account and proceed for credit card application. No need to rush. If he gets any doubt, better to get it clarified here in this forum. The PoCs may push for personal loan offers, overdraft account, investment product, etc but don't fall for that. Just a salary account and a decent CC with good credit limit.
As the employee maintain a salary account, most of the time they don't even ask for the payslip, as even one month salary credit to the account is enough or just sharing the monthly in-hand salary amount is enough.

If the HR/Payroll team says that they don't have any tie up with any bank as such, then that doesn't mean that your son cannot open a salary account with the desired bank. Most banks allow to open a salary account even without a corporate tie up.
For example, if I ask my HR/Payroll team for the list of banks the company has a tie up with, then they say that we don't maintain a tie up with any bank as such. However, the company is in the tier 1/A/premium list of many banks. So yeah, even if tie up is not there, the company could already be in the bank's list of employers to provide special treatment and relax some criteria.

Sharing this as I have seen this personally as how the New College Grads get a good credit card with decent credit limit (usually 3x of monthly salary) as soon as they join the company and open a salary account and apply for the credit card too with the application.
Even interns get the credit card and limit of 3x of monthly stipend. 🙂

He could also check for some banks' CC offerings for alumni of some reputed institutes if his institute name is present in the list. You could check this forum for alumni CC offers.

 

[coolguy1]

There are multiple steps that you can try:

- Get an FD. Wait for a pre-approved card.
- Get an LTF card from his bank account.
- Get a supplementary card for him so he starts learning.
- Get him a loan, teach him ways to pay back on time.

All of this will eventually help him better a better grip of finance and even if he fails, the damage won't be too bad.

These lessons are very important to be taught early on to ensure they don't get lured by high-limit CCs later on and default on them.

 

[BMR]

How long should we wait for the first application after CIBIL is generated ?

My wife had supplementary cards for almost all my cards and have a history of 1.5 years on CIBIL but nil score. So I got her a secured CC from IDFC in Nov 2024. Now her cibil got generated, its 780 and I applied for an Amex card for her, but amex denied it saying they were "unable to do a hard pull" , probably because the CIBIL report is of 3 months. They have asked me to wait for 3 more months.