Boost your credit score by blending you credit:
Lenders like to see that you can manage different types of credit and handle multiple accounts at once. Suppose you have only two major credit cards. You can apply for a small installment loan (one with fixed payments and an established due date) from your bank and pay it back over 12 months. One person who added installment credit to his already established revolving (credit card) credit lines boosted his credit score by about 30 points!
Lenders like to see that you can manage different types of credit and handle multiple accounts at once. Suppose you have only two major credit cards. You can apply for a small installment loan (one with fixed payments and an established due date) from your bank and pay it back over 12 months. One person who added installment credit to his already established revolving (credit card) credit lines boosted his credit score by about 30 points!