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"Types of Credit - 10%
This 10% of your score is made up of criteria where almost nobody has
a correct idea of what to do. If you have ever heard those incorrect
statements such as: 'You should have at least three credit cards,' 'American
Express is a great revolving account,' or my favorite, 'You should have a 1
to 1 ratio between revolving and installment accounts' (this would mean
my sister, who at one point had every store card known to mankind and
would need to buy up half the real-estate in town to keep her
calculation requirements), this section is for you.
a correct idea of what to do. If you have ever heard those incorrect
statements such as: 'You should have at least three credit cards,' 'American
Express is a great revolving account,' or my favorite, 'You should have a 1
to 1 ratio between revolving and installment accounts' (this would mean
my sister, who at one point had every store card known to mankind and
would need to buy up half the real-estate in town to keep her
calculation requirements), this section is for you.
The best score is certainly not about quantity but rather quality. Ideally,
you want to have one account in every category. I'm not just talking
about Revolving, Installment and Other either. Installment accounts can
be broken down further than that. A close to perfect mix is going to be: a
credit card (R), an automobile loan (Auto), a mortgage loan (Mtg), a
student loan (I), and an "other loan" like American Express (O). American
Express that has no limit and is considered an "Other" account, not
revolving as one might assume, as it has no limit to calculate its
utilization.
you want to have one account in every category. I'm not just talking
about Revolving, Installment and Other either. Installment accounts can
be broken down further than that. A close to perfect mix is going to be: a
credit card (R), an automobile loan (Auto), a mortgage loan (Mtg), a
student loan (I), and an "other loan" like American Express (O). American
Express that has no limit and is considered an "Other" account, not
revolving as one might assume, as it has no limit to calculate its
utilization.
The reasoning behind all this is to show you can carry a variety of loans
(shows responsibility) but not too much of any one kind (too much risk).
This doesn't mean you should start opening and closing your loans left
and right to try to get this mixture correct. If you do, all of the other
sections are going to be impacted just as much, which could be good or
very bad. However, to receive guidance, you certainly may send your
referrals our way by using your URL PORTAL."
(shows responsibility) but not too much of any one kind (too much risk).
This doesn't mean you should start opening and closing your loans left
and right to try to get this mixture correct. If you do, all of the other
sections are going to be impacted just as much, which could be good or
very bad. However, to receive guidance, you certainly may send your
referrals our way by using your URL PORTAL."
Devil Norcross
Regional Director and Manager
National Credit Care
Cel: (303)500-7697
Office: (866)595-6313 Ext 403
Fax: (877)754-5724
Email: devin@nationalaecftcare.com
http://www.nationalaecftcare.coni/
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