For financial security, balance is a very important thing to focus on for healthy financial status. A nice mix of diversified blend in investments and saving goals and budgeting priorities are good habits. Prioritizing the important things and observing the spending habits and trying to mend them if necessary are the very basics of becoming financially fit.

Being financially fit also means having a good blend of all the financial tools, but it is often overlooked. When it comes to credit, people are not majorly aware of how good of a benefit it can do. A financial blend or Credit Mix referred to the multiple types of financial aid you have taken so far.

How can Credit Mix Boost Your Credit Score Post Blog

What is a Credit Mix?

Credit Mix is denoted for the types of financial accounts that make your credit report. The credit mix determines the 10% of your credit score and different types of credit might also be part of your mix. This can also include the installment loans like credit cards, student loans, mortgages, automobile loans, and personal loans. The credit mix also has a large impact on your credit score if your credit history is not very diversified. This is because when you have a larger credit history, the lenders get a larger view of your ability to manage your credits.

How can Credit Mix Help Your Credit Score?

As stated earlier, credit mix determines the 10% of your Credit score, and having a not-very-large credit history will do you no good. In an elaborated manner, multiple factors determine your credit score.

Generally, four mainstream categories impact your credit and the most influential is payment history. Your history is the largest part of your credit report and makes up 35% of your Credit Score or CIBIL Score. To give the lenders a sense of surety regarding the risk factors revolving around credit, your credit history should be diverse. If you also make your payment on time every month, your history will present your responsible behavior and it will also increase your credit score. The opposite of this situation is when you do not make your payments, then the creditor can report the payment as late and because the credit scoring models put weight on payment history, your credit score suffers.

The next big component is your credit utilization ratio and it takes up to 30% of your credit score. Credit Utilization means how much of the given credit you are using. Low Credit utilization means that you are a responsible borrower whereas, with high credit utilization, you might not sound responsible enough. The average or ideal credit utilization ratio should be 30% to 40% of the credit limit.

Thirdly, the length of your credit history. The more diverse and clear your credit history will be, the more chances you will have to show your credibility. The credit history includes the list of credits you have taken so far from the day you have opened the account also including the ones presently open.

The final component is your Credit Mix which is determined by how many different types of revolving and installment credit you have. Maintaining a credit mix demonstrates that you can handle the multiple financial aid or credit you have taken. Improvising your credit mix can help you reach an excellent score.

Lastly, having too much debt will also drag your credit score down, and on top of that, the loan is not free, you have interest and different financial charges applied on that loan which becomes a huge amount while repaying.

How can you improve your Credit Mix?

In case you have no credit accounts, the easiest will be to have an account open and apply for a credit card. Use your credit card where you find it necessary and make your minimum payments on time. This will also help you boost your credit history part. A diverse credit mix will also be good in case you wish to buy something big like a house or a car. Here, rather than saving for years and then paying for it, you can directly take a loan and return the loan on a timely basis.

Credit Mix has a 10% share of your credit score, although not a very large percentage it has its importance. A good credit mix will help you create a diverse credit report which will include your mix. This will also further assist you in showing your credibility to the lender.


Credit Mix revolves around your credit taken, revolving, or installment. It also determines a part of your credit score. A good credit mix will help you boost your credit report and credit score. It will also create a portfolio for you showing your buying and repaying behavior and deciding on your future financial status. A good credit mix is a great thing that can trigger your credit score in a good way.

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