Workshop Thirteen

Lenders like to see that you can responsibly handle different types of accounts over time— not just one credit card. This is where credit mix and age of accounts come in.

A healthy profile may include a combination of revolving accounts (like credit cards) and installment accounts (like auto loans, student loans, or personal loans), managed carefully and paid on time.

Length of history also matters. Older, well-managed accounts are valuable, which is why closing your longest accounts without a good reason can actually hurt your score.