Your credit is financial leverage and should be utilized strategically.
In order to have what FICO considers a solid foundation in Credit Mix, you want to have:
5 primary revolving tradelines & 3 primary installment tradelines.
Primary tradelines simply mean that you are responsible for that line or installment credit.
It is your responsibility to pay these credits on time.
Now, why is it important to structure your credit? It’s simple.
You can get money in several different places but if you’re like me and you didn’t come from trust funds, then the best way to get money is from the bank.
And the only way you can get money from the bank is if you have good credit.
Learn more about it by watching this video. Click here.