Creditors like to see a long history of responsible credit use, which is why 15% of your FICO score is based on your credit history. The better it is that your credit card accounts and other types of revolving credit are older.
At the same time, opening too many accounts in a short amount of time will not only lower the average age of your credit, but it will also show lenders that you might be desperate for more credit. So, 10% of your FICO score is based on how much new credit you have.
If you apply for revolving credit and are turned down, think about what went wrong and try to fix it before you try again. Or look for a product that is more likely to be accepted.
Your credit mix makes up the last 10% of your credit score. Lenders like to see that you have experience with different kinds of debt, like a good mix of installment loans and revolving credit.
So, if you don't have much credit history—maybe you only have student loans from when you were a young adult—it might be a good idea to add a credit card or other revolving credit account to your portfolio.
So, if you don't have much credit history—maybe you only have student loans from when you were a young adult—it might be a good idea to add a credit card or other revolving credit account to your portfolio.
At the same time, opening too many accounts in a short amount of time will not only lower the average age of your credit, but it will also show lenders that you might be desperate for more credit. So, 10% of your FICO score is based on how much new credit you have.
If you apply for revolving credit and are turned down, think about what went wrong and try to fix it before you try again. Or look for a product that is more likely to be accepted.
Your credit mix makes up the last 10% of your credit score. Lenders like to see that you have experience with different kinds of debt, like a good mix of installment loans and revolving credit.
So, if you don't have much credit history—maybe you only have student loans from when you were a young adult—it might be a good idea to add a credit card or other revolving credit account to your portfolio.
So, if you don't have much credit history—maybe you only have student loans from when you were a young adult—it might be a good idea to add a credit card or other revolving credit account to your portfolio.