I noticed that now I have a perfect "credit mix" score because I have some revolving accounts which aren't bank-issued credit cards.
Apparently my Care Credit card, and my closed Eddie Bauer card, are considered "charge" accounts rather than "credit card" accounts, and therefore rounded out my "credit mix" to "Exceptional".
I point this out because someone who currently has only 2 of the 3 classes (installment loan & credit card) might actually be able to pick up some points by adding an account which is a revolver but doesn't qualify as a "bank-issued credit card".
@SouthJamaica wrote:I noticed that now I have a perfect "credit mix" score because I have some revolving accounts which aren't bank-issued credit cards.
Apparently my Care Credit card, and my closed Eddie Bauer card, are considered "charge" accounts rather than "credit card" accounts, and therefore rounded out my "credit mix" to "Exceptional".
I point this out because someone who currently has only 2 of the 3 classes (installment loan & credit card) might actually be able to pick up some points by adding an account which is a revolver but doesn't qualify as a "bank-issued credit card".
Presentation does not equate to anything useful unfortunately. I keep harping on this point, none of the 3rd party services and this includes FICO Consumer's myFICO products, is reference for the algorithm.
FICO makes no distinction between any type of revolving account in any model since FICO NextGen (2001/2003 for v1/v2 respectively).
Don't know what service you've seen this on but I will emphatically state there's no difference as borne out by copious amounts of testing here and elsewhere.
This is good to know so that people don't go reaching for accounts they really don't need in an effort what they believe will max out scores.
@Revelate wrote:
@SouthJamaica wrote:I noticed that now I have a perfect "credit mix" score because I have some revolving accounts which aren't bank-issued credit cards.
Apparently my Care Credit card, and my closed Eddie Bauer card, are considered "charge" accounts rather than "credit card" accounts, and therefore rounded out my "credit mix" to "Exceptional".
I point this out because someone who currently has only 2 of the 3 classes (installment loan & credit card) might actually be able to pick up some points by adding an account which is a revolver but doesn't qualify as a "bank-issued credit card".
Presentation does not equate to anything useful unfortunately. I keep harping on this point, none of the 3rd party services and this includes FICO Consumer's myFICO products, is reference for the algorithm.
FICO makes no distinction between any type of revolving account in any model since FICO NextGen (2001/2003 for v1/v2 respectively).
Don't know what service you've seen this on but I will emphatically state there's no difference as borne out by copious amounts of testing here and elsewhere.
In the score factors on MyFICO.com there is a section for Credit Mix. Mine says "Exceptional" now.
It has 3 categories, "Revolving Accounts", "Bank-issued Credit Card Accounts", and "Installment Loans".
Revolving accounts are revolving accounts which aren't considered "bank-issued credit card accounts".
Digging down into my credit report I noticed that the Eddie Bauer card and Care Credit card were denominated "charge accounts" rather than "credit cards".
@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:I noticed that now I have a perfect "credit mix" score because I have some revolving accounts which aren't bank-issued credit cards.
Apparently my Care Credit card, and my closed Eddie Bauer card, are considered "charge" accounts rather than "credit card" accounts, and therefore rounded out my "credit mix" to "Exceptional".
I point this out because someone who currently has only 2 of the 3 classes (installment loan & credit card) might actually be able to pick up some points by adding an account which is a revolver but doesn't qualify as a "bank-issued credit card".
Presentation does not equate to anything useful unfortunately. I keep harping on this point, none of the 3rd party services and this includes FICO Consumer's myFICO products, is reference for the algorithm.
FICO makes no distinction between any type of revolving account in any model since FICO NextGen (2001/2003 for v1/v2 respectively).
Don't know what service you've seen this on but I will emphatically state there's no difference as borne out by copious amounts of testing here and elsewhere.
In the score factors on MyFICO.com there is a section for Credit Mix. Mine says "Exceptional" now.
It has 3 categories, "Revolving Accounts", "Bank-issued Credit Card Accounts", and "Installment Loans".
Revolving accounts are revolving accounts which aren't considered "bank-issued credit card accounts".
Digging down into my credit report I noticed that the Eddie Bauer card and Care Credit card were denominated "charge accounts" rather than "credit cards".
Not even myFICO.com is reference; FICO Consumer vs. FICO Business, Consumer doesn't have full access to the algorithm details and as TT correctly noted the pretty graphics are nice to see and that's why it's there.
It has no effect on the actual FICO scores, revolving is revolving and installment is installment at least on the Classic scores; industry options might do something a little different as we have had at least one quality anecdotal report that student loans didn't seem to reduce the first time buyer penalty seen in the auto industry option scores whereas straight personal loans, auto loans, and mortgages, did. Never been confirmed one way or the other, just the report from a dealership F+I guy who looks at hundreds of reports and scores.
ETA: it's not a feeling, it's effectively anecdotal fact - lots of evidence to support that from dozens if not hundreds of reports here.
@Thomas_Thumb wrote:My 3B reports have always listed my credit mix as very good and CK lists my mix as poor. I lack critical mass on total # accounts for top billing in mix.
I have a total of 9 or 10 open + closed accounts depending on the CRA. My one open installment loan meets the need for Fico 08 and Fico 09. VS3 is limiting my score do to mix and Fico 04 may prefer to see more accounts as well.
Clearly an Excellent mix rating is not critical for score. Nonetheless, many people, myself included, appreciate the ratings as a qualitative assessment on how they are doing.
Even if it's not critical it might mean a few points here and there; or it might not, as Revelate feels.