New Delhi, June 12 -- Recently, when the Reserve Bank of India (RBI) extended the moratorium on repayment of term loans, it said that availing of the facility will have no adverse impact on the credit scores of borrowers.
A credit score 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 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 under 300 is considered very poor.
Your score could be affected by factors such as r...