Credit Age And Credit Mix

Credit Age

Credit age refers to how long you’ve been using credit. Lenders feel that they’re able to trust you to use credit wisely again if you’ve proven that you’ve already been using credit wisely for a long time. One of the best ways to raise your credit score is to use a little credit early in life and consistently pay it back without missing or making any late payments, but if you’re just starting out you may still have a low credit score. This is normal and your  credit score will go up as you continue to use credit wisely. It’s important, however, to leave your credit accounts open, even if you’re not currently using them, since closed accounts will disappear from your credit reports making it appear as if you haven’t been using credit for as long as you have.

Credit Mix

There are many ways to borrow money including credit cards, personal loans, student loans, car loans, and home loans. Lenders feel that you can be trusted more if they’ve seen that you’ve wisely borrowed, and paid back, money in a number of different ways. One of the best ways to raise your credit score is to start using a little credit early in life and pay it back without missing or making any late payments, but if you’re just starting out you may still have a low credit score. This is normal and your credit score will go up as you continue to use credit wisely in different ways. Because of this, it’s important to leave your credit accounts open, even if you’re not currently using them, since closed accounts will disappear from your credit reports making it appear as if you haven’t been using credit in as many ways.