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CHAPTER 6
WINNING AT CREDIT MIX
BELIEVE IT OR NOT, if you’ve followed the steps in the previous chapter,
you have already won at credit mix! But this is an important part of
your credit score, so it’s important that you now understand exactly
how you did that.
“Credit mix” refers to having different types of credit lines that you
are successfully paying off each month. Think of it as demonstrating a
variety of different skills in the game of credit. If you are a coach
recruiting for a team, you want a player who has shown that they can
successfully execute many skills and techniques. A player who is very,
very good at a wide range of skills will likely be offered a better
contract than someone who is very good at just one skill. The same is
true when it comes to loans and credit cards.
How do you demonstrate a variety of skills in the game of credit?
Well, you do it by paying off credit lines with different sorts of
payment terms. Here are some different types of credit accounts you
can get to demonstrate that you have a diverse skill set. You may
recognize these terms from the previous chapter:
