Mega Contributor
RobertEG
Posts: 18,527
Registered: ‎03-19-2007
Re: Do the Type of Creditors Affect your Score?
[ Edited ]

From my readings, all would seem to indicate that FICO does consider the type of creditor involved with various accounts.

Store cards, for example, appear to be assessed a bit differently than major bank cards, with recommendations in credit mix to have at least one major bank card.

Consumer credit loans also appear to indicate lack of creditor ability to secure a loan with a major bank at more favorable terms.  The same appears to be the case with secured vs unsecured revolving accounts, as secured accounts are not really the grant of a line of a discretionary credit limit based on proven history, but rather the revolving use of one's own deposit.

 

The answer lies within the hidden folds of the FICO algorithm, but all I have read indicates that creditor types have their own different indications of risk repayment and credit worthiness, and are thus scored differently.