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30Y FIXED6.85%↑ 0.02·15Y FIXED6.12%↓ 0.01·REFI 30Y6.78%↑ 0.01·HELOC9.20%0.00·JUMBO 30Y7.05%↑ 0.03·HYSA TOP4.85%↓ 0.05·12M CD5.10%0.00·24M CD4.85%↓ 0.02·5Y CD4.40%↑ 0.01·MMA TOP4.65%0.00·AUTO 60M NEW7.10%↓ 0.02·AUTO 60M USED8.45%↑ 0.04·PERSONAL EXC.8.20%0.00·10Y TREASURY4.32%↑ 0.01·30Y FIXED6.85%↑ 0.02·15Y FIXED6.12%↓ 0.01·REFI 30Y6.78%↑ 0.01·HELOC9.20%0.00·JUMBO 30Y7.05%↑ 0.03·HYSA TOP4.85%↓ 0.05·12M CD5.10%0.00·24M CD4.85%↓ 0.02·5Y CD4.40%↑ 0.01·MMA TOP4.65%0.00·AUTO 60M NEW7.10%↓ 0.02·AUTO 60M USED8.45%↑ 0.04·PERSONAL EXC.8.20%0.00·10Y TREASURY4.32%↑ 0.01·
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Glossary term

Credit Mix

What credit mix means in the context of your FICO score, which types of credit count toward it, and whether you need to add types of credit specifically to improve your score.

What Is Credit Mix?

Credit mix refers to the diversity of credit account types in your credit history. FICO includes credit mix as one of five factors in its scoring formula, accounting for approximately 10% of your score.

The two main categories of credit:

Revolving credit: Accounts where you can borrow, repay, and borrow again up to a set limit. Credit cards, home equity lines of credit (HELOCs), and personal lines of credit are revolving accounts.

Installment credit: Accounts with a fixed loan amount, fixed payment schedule, and defined end date. Mortgages, auto loans, student loans, and personal loans are installment accounts.

Having both types in your credit file generally produces a better credit mix score than having only one type.

How Much Does Credit Mix Matter?

At 10% of the FICO calculation, credit mix is the smallest of the five factors. Compare to payment history (35%) and credit utilization (30%), which together account for two-thirds of your score. Credit mix matters, but it is not worth taking on unnecessary debt just to diversify your credit types.

Do You Need to Open New Accounts to Improve Credit Mix?

Generally no. If you have no installment debt at all (no auto loan, mortgage, or student loan), adding a credit-builder loan from a credit union might marginally improve your score. But this is a minor benefit and should not be the primary reason to take on debt.

For most people, maintaining existing credit accounts of both types and managing them well produces better results than deliberately acquiring new account types.

Credit Mix for First-Time Credit Builders

If you are just starting to build credit, a single credit card is a reasonable starting point. The credit mix penalty for having only one account type is minor compared to the much larger impact of establishing payment history and keeping utilization low.

As your credit life naturally evolves (auto loan when you buy a car, student loans if applicable, mortgage eventually), your credit mix improves automatically.

See credit score and FICO score for the full breakdown of all scoring factors.

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