Credit lending can be a strange and mystical industry.
With so much competing information, a lot of us are stuck operating completely on the basis of rumor.
But is it true?
Tina Russell/The Penny Hoarder
And what exactlyisa credit mix?
The answer to the first question is… its kind of true, but theres a catch.
And thats all because of the answer to the second question.
What Is a Credit Mix?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help… ## Did you know?
Open Credit Accounts
These must be paid off in full every month.
Some of these products, like an American Express card, are obviously credit accounts, but others arent.
What Is a Good Credit Mix?
Heres where it all comes together.
All that to say:yes, a goodcredit mixcan improve your credit score.
Should You Open More Accounts to Improve Your Credit Mix?
Yourcredit mixonly makes up about 10% of your score.
This is especially true with an installment credit account.
Are Closed Accounts Bad for Your Credit Mix?
The Bottom Line: Stick to the Credit You Need
Be responsible with your credit!
The most important rule of thumb isonly to get a credit product if you need it.
Most of us arent running around with multiple cars and multiple houses, so this should be self-explanatory.
(If you do have multiple cars and houses, you might be on the wrong site.)
When it comes to revolving accounts though, it depends on your definition of need.
Do youneeda second credit card?
Do youneedthe first one?
Curtis Westman is a writer who, while drafting this article, checked his credit score six times.
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
