Tag Archives: credit portfolio

 

Dec03

Credit Diversity: How Much Does It Really Matter?Mixing It Up Can Have a Major Effect on Your Credit Rating

Credit Diversity: How Much Does It Really Matter?

Posted: December 3, 2012 by Rachel Shepard

Credit diversity. What is it? Does it really matter? I know, you’re probably thinking, “Credit is credit … right?” The truth, however, is a little more complicated than that. There are actually many different types of credit, and in order to have a higher credit score and get lower interest rates on loans, you need to have a variety of forms of credit in your portfolio.

You hear some people warn against having too many lines of credit. While it’s true that being in this situation can be bad if you aren’t paying your various credit lines off or if you are making late payments (or not making payments at all), the fact is, having a few different types of credit can really help out your credit score in the long run, especially when you’re ready to purchase big-ticket items such as a new vehicle or a home.

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