New Delhi, June 1 -- Recently, when the Reserve Bank of India (RBI) extended the moratorium on repayment of term loans till 31 August 2020, it said that availing of the facility will have no adverse impact on the credit scores of borrowers.

A credit score is a three-digit number that reflects the creditworthiness of a consumer. "Lenders use the score to understand the probability of the consumer being able to repay the loan," said Ashish Singhal, managing director, Experian Credit Information Co. India, a credit bureau. Factors such as total debt, repayment history, credit utilization, credit type and total credit accounts determine one's credit score. Typically, a score above 720 is considered very good and anything under 300 is conside...