Skip to main content
Stesso

Optimize Credit Mix (10%)

0:16
1:23
6.6K views

At 0:16 in

Money Monday credit score

Watch on YouTube

What happens here

The video then explains 'Credit Mix,' another factor that contributes 10% to your score. The speaker clarifies that you don't need to purchase new items like a truck or an ATV to diversify your credit mix. A healthy credit mix involves having a combination of revolving credit (like credit cards) and installment loans (like car loans or mortgages), but the emphasis is on not taking on unnecessary debt for the sake of mix. The advice reiterates that simply managing one credit card effectively can contribute to this factor. The wooden block labeled '10% Credit Mix' is subsequently removed with the hammer.

Goal: Achieve a healthy credit mix without incurring unnecessary debt.

Tools and materials

  • Hammer — Used as a prop to visually 'remove' the credit factor block
  • Wooden Block — Represents the 'Credit Mix' component of the credit score
  • Credit Accounts Various Banks — Represents various types of credit (revolving, installment)

What they say

Hide

credit cards because they offer you 10% of that one-time purchase when you're at Home Depot. Just one credit card, get it over with. The next 10% is credit mix. Don't think you need to go out and buy a new truck, you need to go buy a new ATV, you have to have that payment. Absolutely not. It's only 10% of your credit score, just get one credit card and pay it off. 15% of your credit score is length of credit history. Just let time do its thing. That's it. Just let time compound, do

Auto-generated from the video audio.