New Delhi, Oct. 6 -- For a 21-year-old entering the workforce, building a credit history may not seem important when loans or major purchases are still years away. But establishing a responsible credit track record early can make it easier to access credit later, when borrowing for a car, home or other large expenses becomes necessary.

The first step does not necessarily have to involve taking a large loan. Starting with a credit product that can be managed comfortably and demonstrating consistent repayment behaviour can help a young borrower establish a credit profile.

A secured credit card backed by a fixed deposit can be one option for someone with no credit history. An entry-level unsecured credit card may also be suitable for those...