Is Applying For A Credit Card With New Job A Good Idea? - Kotak Bank
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19 DECEMBER, 2022

The excitement of landing a new job is exceptional, especially when it's your first job. It is a significant milestone in your life that shows the beginning of financial independence and the starting point of a new and exciting phase of your life. Amongst other things, building a corpus and managing daily expenses begins at this stage. In this article, you'll learn about the first job credit card benefits you can avail.

Having a credit card at this stage comes with various benefits that help manage expenses and lay a foundation for a credit score.

Credit Cards - an overview

When you are considering applying for a credit card with new job but are trying to figure out the credit card meaning, it is wise to take a step back. Banks provide credit cards to help individuals get a line of credit for a specific period.

A credit card offers an excellent way to manage finances during emergencies and otherwise. Credit cards are also a widely accepted mode of payment globally. One of the best features of credit cards is that they are not linked to bank accounts. Just swipe it without worrying about maintaining your bank balance.

Applying for a credit card with a new job

Now that we have a fair understanding of credit cards, let us focus our attention back on the first job credit card and the benefits it has in store for you.

Ability to spend now and pay later

Landing a new job is exciting in many ways, and there is no reason to curb this excitement once you receive your first salary. A credit card allows you to spend now and pay later. Credit card holders can analyse their future cash inflows and spend before the cash is received. Credit card holders have the advantage of receiving a credit line with zero interest for a brief period. However, credit card holders must be well versed in the penalties associated with late repayments and their impacts so they can improve their creditworthiness.

Manage different expenses

While a new job comes with financial independence, it also means additional responsibilities and bills. Managing various bills, such as utilities, food, gas, groceries and transportation can be overwhelming at times. Individuals can use a credit card to streamline these expenses and monitor them at the same time. Credit cards are a widely accepted mode of payment and can also save you the time involved in making cash transactions or other forms of bank remittances.

Offers and discounts

As a credit card holder, one can benefit from the various offers and discounts provided by the banks. These offers are designed exclusively for credit card holders and can help save costs. The cumulative effect of these offers and discounts can significantly impact individuals' monthly savings. Someone who has just attained financial independence can benefit from additional savings from the onset of their career just by utilising a credit card. Credit cards usually offer discounts on travel, food, online shopping, utility bills and movie tickets.

Build a good credit score

A healthy credit score is essential for taking loans, and a well-maintained credit card will help you in that aspect. Timely payments of credit card bills ensure that the credit line is not misused, and this way, the credit score is maintained over a period. As a new job holder, one would have many ambitions, such as buying a house, purchasing a new car or funding a family vacation. A good credit score can help them procure a home, car or personal loan very quickly. Additionally, a good credit score can help raise the credit limit banks offer.

Repay in Equated Monthly Installments (EMI)

Landing a new job may call for purchasing gifts for family members, throwing a party for friends or even making an expensive purchase for oneself. Events and situations that enable an individual to splurge are not restricted and can occur anytime. Holding a credit card can save you here as well. Many credit cards allow customers to split their huge spending into monthly EMIs at minimal interest rates. A significant amount that you have used via credit card can be repaid through EMIs. Credit card holders can use this to their advantage to manage big-ticket purchases.

Read Also: 6 Ways You Can Achieve Your Credit Score Goals

How to Assess A Credit Card

Applying for a credit card with a new job is beneficial in many ways. However, one may question what is the best credit card for first job. There are a large number of banks that offer credit cards to their customers. However, individuals should understand their requirements, spending structure and frequent spending areas before deciding on the best credit card for first job for them. Additionally, one can look into the following aspects that define a credit card to be the best.

  • It is widely accepted.
  • Cardholders are entitled to various discounts, rewards, offers and cash-backs on spending.
  • Credit cards offer additional discounts or redeemable points on the customer's frequent spending.
  • Cardholders have the flexibility to withdraw cash during emergencies.
  • Credit cards provide a hassle-free shopping experience for in-store and online purchases.
  • A credit card comes with a 24/7 helpline service and a minimal joining/membership fee.


Holding a credit card from the onset of your financial independence can be ideal for managing finances and building your credit card credit score. Good credit cards also facilitate cost savings through the various schemes designed specifically for their customers. Additionally, it is a strong financial tool to cater to emergencies requiring immediate funding.

Applying for a credit card along with your new job is always a good idea. However, credit card holders must be thorough with the terms and conditions mandated by the banks and comply with them throughout their association. Utilising credit cards by meeting the norms and ensuring timely repayments can offer individuals a wide range of benefits. On the other hand, misusing a credit card and not maintaining a timely repayment schedule can negatively impact an individual's creditworthiness.

Read Also: National Electronic Funds Transfer


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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.