Understanding FICO Scores - Types of Credit

The FICO score is based on a mix of credit cards, retail accounts, installment loans, finance accounts, and mortgage loans. It is not necessary to have one of each account. It is also not a good idea to open accounts that you do not intend to use. The more you can diversify your accounts, the more helpful it will be to present a more balanced credit profile. The idea is to have a credit profile which is being used, but also has a healthy degree of diversification. Types of credit in use usually account for approximately 10% of the FICO score.