Chapter 10: The Credit Score: Your Real Social Identity

In India, your social identity is your Family Name, your Caste, or your Degree. In America, it is a 3-digit number between 300 and 850.

Your Credit Score is your Reputation.

10.1. The Three-Digit God

Your Credit Score determines:

If you can rent an apartment.
How much you pay for car insurance.
The interest rate on your loans.
Sometimes, whether you get a job (if it involves security clearance or finance).

10.2. The Paradox: You Must Owe to be Trusted

In India, “being debt-free” is a point of pride. In America, if you have no debt, you have No History. To the system, a person with no debt is just as “risky” as a person with bad debt.

The “Credit Card Game”: You must get a credit card, spend a little, and pay it back in full every month. This “proves” to the system that you are a reliable cog in the machine.

10.3. Starting from Zero

When you first arrive, you are a “Ghost.” You have a high salary but no credit history.

You will be asked for massive deposits (2 months’ rent up front).
You will be rejected for simple phone plans.
The Struggle: It takes about 2-3 years of “boring reliability” to build a score above 700. Don’t rush it by opening 10 cards at once—that actually hurts your score.

Practical Takeaway for the Indian: Protect your Credit Score like your life depends on it. One late payment on a $20 bill can haunt you for 7 years. Set every bill to “Auto-Pay.”