10% – Types of Credit (Do you have a good balance of accounts or only CC’s?)
Having a good balance of credit accounts is a small but important portion of your credit score. There are 3 types of credit — Revolving, Installment, and Mortgage. It is ideal to have 3-8 revolving accounts as long as they are balanced with installment accounts such as an auto loan, student loan, or personal loan. Adding a mortgage gives the perfect balance of open/active/ positive credit. If you are one of those consumers who opens up a store credit card every time you are offered 15% off your purchase – you may want to rethink your strategy. I once had a client who had 51 store credit cards…yikes!
