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How do different types of debts (e.g., credit card, mortgage, student loan) influence my credit scor

Updated: Sep 13, 2023

Each debt type, known as a 'credit mix', comprises about 10% of your credit score. Lenders prefer to see a combination, indicating you can handle various credit types:

  • Credit Cards: Responsible usage and timely payments can boost your score. Conversely, high balances relative to your limit can hurt.

  • Mortgages: A home loan, when paid punctually, can substantially benefit your credit score given its size and installment nature.

  • Student Loans: Like mortgages, these are installment loans. Consistent payment can be positive, but delinquency can heavily weigh down your score.


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