How to Use Credit Cards to Improve Your Credit Score (15 Steps)

7. Diversify Your Credit Mix

Having a mix of credit types — like credit cards, installment loans (auto, student, or personal loans), and retail accounts — shows lenders you can manage different types of credit responsibly.

However, you shouldn’t open new accounts just to diversify. Focus on maintaining one or two well-managed credit cards and consider other credit types only when you truly need them.

For example:

• A small credit-builder loan from your local credit union.
• A buy now, pay later plan (only if it reports to credit bureaus).
• A personal loan for consolidating debt responsibly.