New Delhi, May 13 -- In India, there is a strong belief that avoiding debt is the best way to stand out and stay away from financial problems. Such a practice also keeps an individual financially healthy. Given this can work for personal budget planning, still it can backfire when it comes to your credit score and your overall credit profile.

According to Bhushan Padkil, SVP and Head - DTC ( Direct-to-Consumer), TransUnion CIBIL, "Building a strong credit score is not about avoiding debt, but about demonstrating consistent and responsible credit behavior. For new borrowers or borrowers without any debt history in the past 36 months, it's important to understand that you won't have a credit score."

"However, this does not mean that you a...