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Whats the best overall credit mix?

Contributor

Whats the best overall credit mix?

As part of my rebuilding process, I want to grow my reputation with different accounts.
 
I currently have a student loan that has never been late, so thats positive for an installment account.
I also have 2 cards with $300 limits.( First Premier Bank and the other is HSBC/Orchard Bank - now owned by Capital One.) I believe these would be considered revolving.
 
Should I open a secured credit card with a major credit card company or my credit union? I understand that having a higher amount of credit shows more responsibility than just dealing with $600 worth of credit. Ive already tried credit limit increases, and it's a no go for now.  
(By the way, my current utilization is only about 2% with each card.)
 
Other than a mortgage, are there any other types of accounts that would help boost my score? Like retail cards, etc...if so is there a magic number for each?
Message 1 of 4
3 REPLIES
Established Contributor

Re: Whats the best overall credit mix?

i think auto loans are usually considered pretty good within the mix



Starting Score: EQ 609, EX 633(Fako), TU 700
Current Score: EQ 699, EX 758, TU 733
Goal Score: 720 across the board
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Message 2 of 4
Valued Contributor

Re: Whats the best overall credit mix?

Auto loans are primarily to satisfy the mix of credit installment loan factor. The OP has an installment loan with the student loans. FICO does like to see a "major bank" card but the Capital One qualifies in that regard. FICO is not concerned with what your credit limits are in particular but simply what portion of them is being used (credit utilization). The only reason to have higher limits is in the event that life makes it necessary to carry a balance then the higher limit means utilization is not as affected.

 

There is an ongoing debate which has not truly been proven as to whether a retail / store card has any effect in adding to the mix. I believe the last consensus was that it makes no difference. Similarly there is debate whether 2 or 3 credit cards is better. Anything over 1 seems to make a difference. Having three and carrying a balance on only one means less than half have a balance. With 2 cards it is half have a balance.

 

These little tricks are only for pulling the last few points available for a maximum credit score and don't matter if you are not currently applying for credit. Utilization can be manipulated before an application and FICO has no memory of it for scoring. The best thing to improve your score is NEVER NEVER NEVER be late and let time age your credit accounts.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
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Message 3 of 4
Contributor

Re: Whats the best overall credit mix?

Thanks so much for clearing this up for me!

Message 4 of 4