CIBIL score in India works on the same principles as the American FICO system. Here is why that matters.

The American credit score system was built in 1956 by Fair Isaac Corporation specifically to standardize lending. India adopted the same model through CIBIL in 2000. Both systems reward the same behaviors. Maintaining multiple debt products simultaneously. Keeping old accounts open. Using credit regularly. Neither system rewards saving, investing, or building net worth outside the debt system. For Indian middle class workers trying to build wealth this creates a specific problem worth discussing.