What is a Credit Mix and How Can it Affect Credit Scores? | Intelligent Finance Guide

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Founded by a group of Stanford alumni with a strong background in banking and technology, MyMoneyKarma has been revolutionizing the Indian Fintech sector and ushering in the future of personal finance. Committed to a social mission of creating a measurable impact on people’s lives, MyMoneyKarma has empowered millions of people to reclaim control over their finances by addressing the 3 biggest issues and barriers in the sector:

Low financial literacy means most people applying for loans, mortgages or credit cards have never checked, nor heard of, their credit scores. By this time, the damage has often been done
Low information transparency means it can be difficult to know the best interest rates for each customer’s unique profile, the financial providers that offer the best terms, and how to maximize one’s chances of being approved (where a rejection further worsens the credit score)
High effort and hassle means one is too hard-pressed to shop around, try multiple options and find the best fit, instead ending up with sub-optimal decisions and a whole lot of wasted time and sweat

MyMoneyKarma’s fully online loan optimization technology helps customers with an extensive range of financial products, delivering the lowest interest rates and comprehensive service at the touch of a button.

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Credit mix simply refers to how many different types of credit a borrower has. But why does it affect your credit score? Isn’t it enough if you regularly repay a single credit line?
Well, while repayment history is the major factor in credit score calculation, lenders also like to consider how good you are at managing different types of credit. For instance, you might be really good at managing simple personal loan EMIs - a form of Installment Credit, but struggle with repaying the entire outstanding balance on your credit card bills - Revolving Credit. Similarly, you may have taken Secured Loans, like a Car or Home loan, but shied away from getting an Unsecured personal loan. Regular EMIs on an unsecured loan and properly planned credit card payments, or credit card payments mixed with EMIs on car and home loans can instill a sense of confidence in banks with regard to your ability to manage money. So for a proper boost to your credit score, it is best to have as many of these as possible, but of course only as much as you can repay responsibly.

Need to check your credit score for the first time?
Well, all you need to do is sign up at the mymoneykarma website. We provide you free access to your credit score, detailed credit report, and personalized advice on how your credit can be improved. Moreover, checking your score with mymoneykarma is a soft inquiry, meaning it does not have any impact on your credit score. You can get started right away by following the link below.