 TITLE: How the Right Mix of Credit Can Boost Your Credit Score CONTENT: What Are the Different Credit Types?\n------------------------------------\nThere are two kinds of credit: revolving and installment.\n**Installment credit** has a fixed end date with a series of payments due every month. Installment loans include mortgages, student loans, auto loans, and personal loans.\n**Revolving credit** doesn't have a specific end date or set balance. Instead of spacing out the balance equally over a certain length of time, a minimum payment is due each month. Consumers can choose to pay more than the minimum but are not required to. Credit cards are the most common type of revolving credit. A home equity line of credit (HELOC) is another type.\nThere are two types of credit cards: bank cards and retail cards. Bank cards are issued by banks, while retail cards are from brick-and-mortar and online stores. Retail cards often come with higher interest rates and sneaky fine print, so be sure you are familiar with all the details before using a retail card.\nAn ideal credit mix includes a blend of revolving and installment credit. An easy way to use revolving credit is to open a credit card—and pay your bill on time every month. Ideally, charge only what you can pay off every month to avoid interest. If you don't have an installment loan and only have credit cards, consider opening a small personal loan or other types of secured loan. This will demonstrate your ability to manage different types of credit. END