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Valued Member
Posts: 44
Registered: ‎05-31-2007
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Can someone explain different types of credit usage to me?

This is currently my biggest confusion in FICO scoring. Let's say I don't have any installment or mortgage loans. How much variety can I have with without those? I heard dept store cards help. Does it really help to have a Visa, MC, Discover, and AMEX? (is each one important)
Valued Contributor
Posts: 1,746
Registered: ‎08-18-2007
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Re: Can someone explain different types of credit usage to me?

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654 start with this
Established Contributor
Posts: 905
Registered: ‎05-09-2007
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Re: Can someone explain different types of credit usage to me?

[ Edited ]
Payment history: 35%, Amounts owed: 30%, Length of credit history: 15%, New credit: 10%, Types of credit used: 10%
 
Hope this Helps.
 
As you can see only 10% of your score is dependent on the mix...  The big ones are Hx and revolving debt to available credit (Utilization)
 
Hit my signature links for additional info.
 
Rob


Message Edited by FICO_Focused on 08-24-2007 01:58 PM
Valued Member
Posts: 44
Registered: ‎05-31-2007
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Re: Can someone explain different types of credit usage to me?

I understand that credit mix is 10%, but I want an in depth explanation of that. No one has answered my questions:
 
- Will it affect my score to have a Visa, MC, Discover, and AMEX, as opposed if I had 4 Visas?
 
- Should I get a dept store card to help with my mix?
Moderator Emeritus
Posts: 16,381
Registered: ‎03-12-2007
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Re: Can someone explain different types of credit usage to me?



Jack_Sparrow wrote:
I understand that credit mix is 10%, but I want an in depth explanation of that. No one has answered my questions:
 
- Will it affect my score to have a Visa, MC, Discover, and AMEX, as opposed if I had 4 Visas?
 
- Should I get a dept store card to help with my mix?


Visa, MC, Discover and Amex (revolving, not charge cards) are bank cards and it doesn't matter if you have three of the same or one of each...they're equal and in FICO scoring carry the same weight.
 
Store cards are not bank cards and having 1 or 2 does help with your credit mix. Bank cards carry a lot more weight in scoring than do store cards. How much, well nobody really knows...it's FICO's secret.
Credit Profile - FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 27 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: TU 1


Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring World Mastercard ~ Chase Freedom Signature Visa ~ CITI Dividend World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
New Member
Posts: 3
Registered: ‎08-29-2007
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Re: Can someone explain different types of credit usage to me?

People are forgetting that store cards are issued by banks as well. The bigger issue to think about is how much credit one has available relative to their debt. So, to answer the question, having a mix of credit counts, but remember that ALL accounts add up to the pot. Jack_Sparrow: Depending on how much credit you have available to you, consider that you don't want too many accounts, but it doesn't hurt to have a retail card. However, don't get one unless you use it because you will get hit for an inquiry for nothing. Only get credit you will use.
Super Contributor
Posts: 8,198
Registered: ‎03-25-2007
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Re: Can someone explain different types of credit usage to me?



metalboy50 wrote:
People are forgetting that store cards are issued by banks as well. .

True - but a store card can only be used in a store, a true CC can be used anywhere.  That is possibly why FICO gives more weight to CCs and less to Store Cards.
 
And there are store cards and CCs issued by stores - these are different.  I have a gas card that can only be used in the company's gas stations.  I also have a CC issued by a gas company (via Juniper) that is a true CC
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Moderator Emeritus
Posts: 16,381
Registered: ‎03-12-2007
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Re: Can someone explain different types of credit usage to me?

[ Edited ]
Smiley Indifferent


Message Edited by fused111 on 08-29-2007 07:11 AM
Credit Profile - FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 27 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: TU 1


Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring World Mastercard ~ Chase Freedom Signature Visa ~ CITI Dividend World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Super Contributor
Posts: 8,198
Registered: ‎03-25-2007
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Re: Can someone explain different types of credit usage to me?



fused111 wrote:
Smiley Indifferent


Message Edited by fused111 on 08-29-2007 07:11 AM


I was just trying to be polite  Smiley Very Happy
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Moderator Emeritus
Posts: 16,381
Registered: ‎03-12-2007
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Re: Can someone explain different types of credit usage to me?

Read my lips...bank (major) credit cards carry more weight than store cards not issued by banks.Smiley Very Happy
Credit Profile - FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 27 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: TU 1


Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring World Mastercard ~ Chase Freedom Signature Visa ~ CITI Dividend World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa

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