Types of Credit Use Tips

• Apply for and open new credit accounts only as needed.
  Don't open accounts just to have a better credit mix - it probably won't raise your credit scores. However, since credit is categorized, a good mix should be a plus over a period of time.
• Have credit cards - but manage them responsibly.
  In general, having credit cards and installment loans (and making timely payments) will raise your credit scores. Someone with no credit cards, for example, tends to be viewed as a higher risk than someone who has managed credit cards responsibly.
• Note that closing an account doesn't make it go away.
  A closed account will still show up on your credit report and may be considered in your score. A well-paid item generally can stay on your report for up to seven years, just as a poorly paid item.