Use different credit types to boost your score

Mar 23 2010 Credit types are many that are used by consumers every day. Car loans, card loans, house loans and other installment loans all fall under credit. While using any of them or all of them is not a problem and may in fact be good for your credit score if you can stick to repayment schedules, it is when you are unable to meet the repayment obligations that problems start arising and your credit score starts declining.

Lenders like to see consumers using a variety of credit types and making repayments on time. It increases the confidence in them about the consumer and encourages them to lend to such consumers. They know that anybody making is repayments on time is unlikely to default and hence go by the high credit score of such consumers while deciding how much to lend and at what rate of interest.

Factors like your current income, employment, place of residence, any alimony payments or marital status do not have any influence on the credit score. They are something that lenders would take into account on their own and come to a decision on whom to lend to.

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