Are you a well-balanced credit consumer? This last factor looks at your mix of credit. It asks if you are using credit the way creditors want you to use it. It also give a glimpse into how well you understand your options.

Are your credit accounts active?
Most creditors want you to use the credit they extend you. If you don’t use an account regularly, that means you really don’t need that credit. You are usually better off closing an unused account.

Is your Credit Portfolio diverse?
Again, types of accounts (bank cards, retail and installment) are important in this category. Establishing diversity in credit use should never be taken on a short-term basis. This should be carefully-considered and implemented over a period of time, like six months to a year. Again, don’t get credit you don’t need.

Actions for Better Credit:

• Closing an account does not mean it won’t be scored. Remember, it takes a while for an account to go away entirely.
• If you don’t own a home (have a mortgage), that may not affect your score if you pay your rent on time and if the landlord reports the payments. Maybe you stay away from retail cards, but take personal loans regularly from a bank.