Credit glossary
Credit mix
The variety of account types in your file, such as cards, auto loans and mortgages, worth about 10% of a FICO Score.
FICO counts credit mix as one of its five categories, at roughly 10% for the general population. It looks at whether you've handled both revolving credit, like cards, and installment loans with fixed payments. FICO also says you don't need one of each type and advises against opening accounts you don't need just to improve your mix.
Mix mostly matters at the margins, once payment history and balances are in good shape. A reason code like lack of recent installment loan information tempts people into loans they don't need, and each new account adds an inquiry and lowers your average age. When a loan is paid off and closes, the mix narrows a little, and Experian says that dip is usually small and short-lived.
Guides that go deeper
- Credit mix: how much it counts and when to leave it aloneCredit mix is 10% of a FICO Score, and FICO says you don't need one of each account type. The math on taking a loan just to improve mix rarely works.
- Why paying off a loan can drop your score (and why it's still fine)You made the last car payment and your score fell. What changed on your report, how long the dip lasts, and when the timing of a payoff matters.
- Credit score reason codes, decoded: what each one is telling youReason codes list what held your score back the most, in order. What the common ones mean, which you can act on, and which to leave alone.
Sources
- Credit Mix: What Types of Credit Should You Have?, myFICO
- Types of Credit, myFICO
- What's in my FICO Scores?, myFICO
- Why Did My Credit Score Drop When I Paid Off a Loan?, Experian
This is education, not legal or financial advice. Spot an error? Tell us and we'll fix it.