Does More Accounts Mean Better Credit Mix?

I used to think credit mix was this complicated thing where you needed like seven different types of loans to max out your score. Student loan, auto loan, mortgage, personal loan, credit cards - the whole shebang. Turns out I was totally wrong, and I bet a lot of you are making the same mistake.

Credit mix is actually pretty simple

Here's the deal: FICO basically just wants to see that you can handle two different types of credit. That's it. You need one revolving account (think credit card) and one installment loan (car loan, student loan, mortgage, whatever).

And get this - they don't even have to be open. You could have paid off your car loan years ago and closed a credit card, and you'd still hit the credit mix requirement. So if you've got one credit card and finished paying off student loans, congratulations - you've already nailed credit mix.

More isn't always better

I know what you're thinking: "But what if I have a student loan AND a car loan? That's gotta be better than just one, right?"

Nope. Once you've got that basic combo of revolving + installment credit, adding more types doesn't really move the needle on your credit mix score. FICO has already checked that box.

Now, I'm not saying having more accounts is bad - there are definitely some benefits.

Why you might still want more accounts

Having more accounts can help in other ways:

Thicker file: Lenders like seeing more history. It's like the difference between a one-page resume and a detailed work history. More data points make you look more established.

Payment history: More accounts mean more opportunities to show you pay your bills on time. And payment history is the biggest chunk of your score anyway.

Manual underwriting: When a human actually looks at your application (not just the automated score), they might be impressed by your diverse credit management skills.

Industry scores are different

Here's where it gets a bit more interesting. There are specialized FICO scores for different industries, and these DO care about specific account types:

Auto scores: If you're buying a car, the auto-enhanced FICO score puts extra weight on how you've handled car loans before. So yeah, having car loan history helps here.

Bankcard scores: For credit card applications, they look more closely at how you've managed other credit cards. Multiple well-handled cards can boost these scores.

But notice that's not about general credit mix - it's about showing you can handle the specific type of credit you're applying for.

Don't overthink it

Look, I've seen people take out personal loans or open store cards thinking they need to diversify their credit mix. Most of the time, you're just paying interest for no real benefit.

If you've already got a credit card and any kind of loan (even one you paid off years ago), you've probably satisfied the credit mix requirement. Focus on the stuff that actually matters - paying your bills on time, keeping your credit card balances low, and not applying for credit you don't need.

The credit mix thing is way simpler than the template to write a letter industry wants you to believe. Don't let anyone convince you to take on debt just to "improve your mix."