What is a “Healthy Credit Mix?”
Your FICO score has many different factors that come together to generate your score. One is your Credit Mix and it makes up to 10% of the FICO score. The score wants to see a “healthy mix” of credit. What is does that mean?
They like to see you using many different forms of credit. Using just credit cards is not an example of this. It is better for your FICO score to have some credit cards, an auto loan, and a mortgage. It is not the number of account either just what types you do have. Things like installment weigh heavily here because lenders spend some time researching and reviewing you before giving you a loan. Also, you are seen as more responsible being able to handle any type of loan.
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