Types Of Credit Used

Having a large number of credit cards may prove that you are able to handle credit card responsibility, but many lenders like to see how you can handle other types of credit accounts as well. They refer to this as the "credit mix", and this is the way you handle different types of credit accounts. Some of these accounts include:

• Credit cards
• Retail accounts
• Installment loans (Car loans, student loans, etc.)
• Mortgages

NOTE: Make sure to slowly build a mix of credit accounts and maintain them with care. Remember, a good credit score can get you a long way in the modern American dream.