 TITLE: Why a Credit Card Alone Might Not Be Enough to Build Your Credit CONTENT: Don't Ignore Credit Mix When Building Credit\n--------------------------------------------\nThere are multiple factors that make up a credit score:\n*   Payment history\n*   Amounts owed\n*   Length of credit history\n*   Credit mix\n*   New credit\nCredit mix, or types of credit, considers the kinds of debt you've taken on, such as installment loans and revolving lines of credit. Lenders like to see that you're a versatile borrower, so credit mix accounts for 10% of your credit score.\nRevolving credit, such as credit cards, can revolve with or without a balance on an ongoing basis. Credit cards offer flexibility because you can use them up to the maximum credit limit—or not at all. Revolving credit generally requires a minimum monthly payment, but other than that you can pay off as much or as little as you'd like.\nInstallment loans, on the other hand, have a fixed schedule of payments over a predetermined length of time. Once the loan is taken out, the borrower is obligated to make payments according to the payment schedule.\nExamples of installment loans include mortgages, auto loans and personal loans.\nTo lenders, a diverse mix of installment loans and revolving lines of credit indicates you can responsibly handle both types of products. For example, if you apply for a loan like a mortgage, the lender will want to see how you've handled other installment loans, and whether you can pay a fixed amount back on a regular schedule.\nIf you've only had credit cards and not installment loans on your credit report, you may have a harder time getting approved or getting a low interest rate. END