Imagine graduating from college, getting a great job offer, and walking into a bank to buy your dream bike or car, only to be rejected. Why? Because you have "No Credit History."
In India, having "No Score" (represented as -1 in CIBIL) is almost as bad as having a bad score. Banks don't trust you because they don't know you.
Most students think, "I can't get a credit score because I don't have a job or a credit card."
This is wrong. You do not need a salary slip to start building your financial reputation. In fact, your college years are the best time to start. By the time you graduate, you could have a CIBIL score of 750+, which means cheaper loans and instant approvals later in life.
Here is exactly how Indian students can build a solid credit score from scratch in 2026.
1. Use "Buy Now, Pay Later" (BNPL) Accounts
This is the easiest hack for students. Services like Amazon Pay Later, Flipkart Pay Later, or Paytm Postpaid are technically small loans.
When you activate these services to buy a book or order food, a lending partner (like IDFC or Aditya Birla Capital) opens a small credit line in your name.
The Strategy: Activate Amazon Pay Later. Buy something small (like a ₹200 notebook). Pay the bill on time next month.
The Result: The lender reports to CIBIL that you paid your "loan" on time. Your score starts going up.
2. Get a Secured Credit Card (FD Backed)
Regular credit cards require a job. Secured Credit Cards only require a Fixed Deposit (FD).
How it works: You give the bank ₹2,000 or ₹5,000 as an FD. They give you a credit card with a limit of 90% of that amount.
Best Options for Students:
IDFC First WOW Card: Great for students, no income proof needed.
OneCard (FD Variant): Very popular with Gen Z, metal card design.
Kotak 811 Dream Different: Links to your zero-balance account.
Why do this? If you use this card for small recharges and pay the bill by the due date, your score shoots up fast. Plus, your FD still earns interest!
3. Consumer Durable Loans (No Cost EMI)
Planning to buy a new smartphone or laptop for college? Don't pay the full cash upfront.
The Strategy: Buy it on "No Cost EMI" using a Bajaj Finserv EMI Card or similar consumer loan.
Even if you have the cash, put it in your bank and opt for a 3-month EMI plan.
The Result: Paying 3 EMIs on time creates a "Closed Loan Account" on your report, which looks fantastic to future lenders.
4. Authorised User (Add-on Card)
If your parents have a credit card with a good history, ask them to make you an "Add-on" member.
You get a card with your name on it, linked to their limit.
Note: Not all banks report add-on cards to the child's CIBIL, so check with the bank first. HDFC and ICICI often do.
5. Don't Ignore Your Education Loan
If you have taken an education loan, you are already building a score!
If your parents are paying the interest while you study, make sure they never miss a date. A single missed payment on an education loan can destroy your score before you even start your career.
Crucial Mistakes to Avoid
Building credit is like building trust—it takes months to build but seconds to break.
Never Miss a Payment: Even a delay of 2 days is reported as "Late Payment." This stays on your record for years.
Don't Apply Everywhere: Don't apply for 5 credit cards in one week. Each rejection lowers your score.
Keep Utilization Low: If your credit limit is ₹10,000, don't spend ₹9,000. Try to spend only ₹3,000 (30%). High spending makes you look "Credit Hungry."
How to Check Your Score for Free?
You don't need to pay. Use apps like GPay, Paytm, or OneScore to check your CIBIL score for free every month. It won't harm your score to check it yourself.
Conclusion
A CIBIL score is your financial CV. If you start building it today using a simple BNPL account or a Secured Card, you will be miles ahead of your classmates when you graduate.
Remember, credit is a tool, not free money. Only spend what you can afford to pay back from your pocket money or earnings.
Need money to pay those credit card bills? Check out our guide on [7 Legit Ways Students Can Earn ₹500 Daily] to ensure you never miss a payment.
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