This is one of the most overlooked and easily manipulated areas of your credit profile. The “ideal” credit profile is a person who has one or two mortgages, one or two installment loans (student loans, car loans, personal loans, etc.), and 3-5 credit cards. The reason for this answer is because it is better to have a potential borrower who has experience with all three types of credit: mortgages, installment loans (loans with regular repayment plans), and credit cards.

Most people with “challenged” credit don’t have 3-5 credit cards or therefore do not have the ideal “mix of credit”. By obtaining some secured credit cards or merchandise cards, you can hit that ideal range of 3-5 credit cards and start maximizing your score.

This section of the pie accounts for 10% of your score.  I hope you found this credit help section useful about the ideal mix of credit!