Your credit score can have a major impact on your life these days. It can affect what loans and credit cards you qualify for. It can even influence your potential employers or landlords when you’re looking for a job or a home.

Ideally, your credit profile will include a mix of installment and revolving credit. Your mix makes up 10% of your credit score, so it’s important to understand both categories.

What is installment credit?

With installment accounts, you receive the funds up front, have a set starting balance and make a fixed number of monthly payments until a specific end date. These types of accounts include:

• Student loans
• Mortgages
• Auto loans
• Personal loans

What is revolving credit?

With revolving credit accounts, you are approved for a specific amount (your credit limit). Then you can borrow as much as you need and pay it back for as long as the loan is open.

Common types of revolving credit include:

• Credit cards
• Home equity lines of credit (HELOC)
• Personal lines of credit

Mix it up

To make a positive impact on your credit score, make sure you have a good mix of both types of credit. Then, for your installment accounts, be sure to make your full payments on time each month. On your revolving accounts, make sure you only charge what you can pay off in full each month so you don’t carry a balance and pay interest.

The best way to start is to look at your credit report. It will show all your credit accounts, their balances and payment histories. If you’re a Veridian member, you can see your TransUnion credit report with Credit Central in online banking and our mobile app.

For a larger overview, you may request reports from all three credit bureaus at annualcreditreport.com.