Mix of Credit

Mix of credit, also known as account mix, refers to having different types of credit. For example, having a credit card and a student loan, rather than just a credit card, will increase your score. 

Lets take a look at the different types of credit:

• Installment Credit: When you receive money or something of value (like a car) in exchange for a promise to repay in installments. This includes car loans, student loans, home loans, etc.
• Revolving Credit: This is credit that "revolves" when you pay it down. For example, with a credit card, your available credit revolves back to its original value when you pay off your bill. This type mainly includes credit cards. 
• Mortgage: While home loans are installment credit, they count in this area too.
• Open Credit: This type of credit has no limit, but you must pay its balance at the end of the billing period. This mainly includes charge cards. 

Note: While having a mix of credit will help your credit score, not having a mix won't hurt it. So don't go out and get a new loan just to help you in this category.