Can someone explain different types of credit usage to me?

[Anonymous]

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)

[oracles]

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654 start with this

[Anonymous]

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

[Anonymous]

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?

[fused]

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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?

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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.

[Anonymous]

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.

[MidnightVoice]

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

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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

[fused]

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

[MidnightVoice]

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fused111 wrote:

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

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I was just trying to be polite 

[fused]

Read my lips...bank (major) credit cards carry more weight than store cards not issued by banks.