New Delhi, Oct. 15 -- While your credit score is primarily a function of your credit repayment habits, it is also impacted by a slew of other factors. One such factor is 'inflation'. While one would suspect that inflation does not directly impact your credit score but it certainly has some bearing on it.

As prices of food and other items increase over a period of time, your purchasing power tends to fall. As a result, it is not uncommon to use a higher amount of credit to be able to maintain the same lifestyle. Because of higher credit utilisation, your credit score takes a beating.

There is another reason why inflation could impact your credit score. As a result of inflation hovering beyond the RBI's comfortable range of 4%, repo rates...