I've always thought that credit mix includes open and closed accounts.
This MyFICO blog post suggests that closing an account takes it out of the credit mix calculation.
@SouthJamaica wrote:I've always thought that credit mix includes open and closed accounts.
This MyFICO blog post suggests that closing an account takes it out of the credit mix calculation.
Closed installment accounts definitely count toward mix. That was specifically mentioned in Liz Weston's National Bestseller book: Your Credit Score, How to Improve The 3-Digit Number That Shapes Your Financial Future, 4th edition. The same statement suggests that revolving accounts must be open (I interpret this as including PLOC/HELOC and open accounts in addition to credit cards). [statement on page 25 of the updated 5th edition]
She acknowledges the following Fair Isaac sources:
Craig Watts, Ryan Sjoblad, Lamont Boyd, Barry Paperno, Anthony Spauve, Christina Goethe and David Shellenberger. Another "go to" source was John Ulzeheimer. John did stints at Fair Isaac and Equifax before starting is own business.
@Anonymous wrote:I'm going to go with whoever wrote that either misspoke or just got it wrong.
I think it's easy enough to prove looking the "rating" you get from Experian. All you need to find is someone with many different types of closed credit accounts on their report, but only (say) revolvers open. My guess is that they'd still have an "exceptional" rating.
I tend to agree with you, but the source of the blog post is MyFICO.
@Thomas_Thumb wrote:
@SouthJamaica wrote:I've always thought that credit mix includes open and closed accounts.
This MyFICO blog post suggests that closing an account takes it out of the credit mix calculation.
Closed installment accounts definitely count toward mix. That was specifically mentioned in Liz Weston's National Bestseller book: Your Credit Score, How to Improve The 3-Digit Number That Shapes Your Financial Future, 4th edition. The same statement suggests that revolving accounts must be open (I interpret this as including PLOC/HELOC and open accounts in addition to credit cards). [statement on page 25 of the updated 5th edition]
She acknowledges the following Fair Isaac sources:
Craig Watts, Ryan Sjoblad, Lamont Boyd, Barry Paperno, Anthony Spauve, Christina Goethe and David Shellenberger. Another "go to" source was John Ulzeheimer. John did stints at Fair Isaac and Equifax before starting is own business.
All right then, since you and BrutalBodyShots agree with my earlier supposition, I'll disregard the MyFICO blog post.