Credit mix refers to having different types of credit accounts on your report. It accounts for 10% of your FICO score.
Having both installment loans (car loan, student loan, mortgage) and revolving accounts (credit cards) is beneficial. A diverse mix shows you can manage different types of credit.
Don't open new accounts just to improve your mix. The hard inquiry and new account will hurt more than the mix benefit helps.
What Credit Mix Means
Credit mix evaluates the variety of credit accounts you have. A healthy mix includes both revolving accounts (credit cards, lines of credit) and installment accounts (loans with fixed payments).
Score Impact
Credit mix is 10% of your FICO score. It's a relatively small factor. Payment history (35%) and utilization (30%) are much more important to focus on.
Types of Accounts
Revolving: credit cards, retail cards, home equity lines. Installment: car loans, student loans, mortgages, personal loans. Having at least one of each type is beneficial.
Don't Over-Optimize
Opening a new account to improve mix creates a hard inquiry (temporarily drops score) and reduces average account age. The net effect is often negative. Focus on payment history and utilization instead.
Other Factors Matter More
If your credit profile is thin (few accounts), time and responsible use will naturally build your mix. Don't rush to add accounts you don't need.
Strategies for Thin Files
If you have no installment loans, don't take one out just for credit mix. If you have no revolving accounts, one secured credit card used responsibly can help build mix over time.