Have a Healthy Mix of Credit
In the surreal world of FICO scores there is a secret formula that calculates whether or not you are holding a healthy mix of credit. A healthy mix is a balanced mix meaning you do not use too many department card store cards only or only have one personal loan and no credit cards.
According to FICO, the ideal scenario for credit holders is supposed to be the borrower who maintains one to two installment loans (mortgage and car usually), at least three of the major credit cards (usually Visa, MasterCard and American Express) and just one or two retail cards (grocery store, Wal-Mart etc.)
Penalizing you for not having enough or the right kind of credit is how these companies can also encourage you to buy more credit products. If you only have one kind of credit then this imbalance can reflect as a negative comment in your credit report which of course then spurs you on to buy more products from the clients of the credit bureau – the lenders!