Bank Routing Number
107001481
Bank by Mail/General Mail
PO Box 26458
Kansas City, MO 64196
Deposit Only Mailbox
PO Box 26744
Kansas City, MO 64196
Phone Number
1-877-712-2265
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If you are building credit, you have probably come across the term “credit mix.” But what does it mean? And why should you care about credit mix? Whether you are just starting your credit-building adventure or looking to level up your score, understanding credit mix is a must. Below, we will explore what credit mix is, how it impacts your credit score, and examples of different types of credit.
Your credit mix refers to the different types of credit accounts you currently have. It makes up about 10% of your credit score. And while 10% might not seem like much, it can make a big difference when you are working toward a better credit score.
Lenders like to see a variety of credit types because it shows your ability to manage different forms of debt responsibly. Imagine a lender reviewing two applicants. One has only a single credit card, while the other has a mortgage, car loan, and a credit card—all handled well. Guess who feels like a safer choice? You got it! Managing a variety of credit types often demonstrates your trustworthiness, or “creditworthiness.”
If your credit mix isn’t strong, you could miss out on having a higher credit score. And why does that matter? Your credit score influences your access to loans, better interest rates, and other financial opportunities—keeping more money in your pocket.
Broadly, there are three main categories of credit accounts making up your credit mix: revolving credit, installment credit, and open credit. Each has its own purpose and structure.
Revolving credit, also known as “open-ended credit” or a “credit line,” is a type of credit you can use repeatedly up to a set limit. It allows you to borrow, repay, and borrow again without needing to reapply. This type of credit is ideal for keeping your finances flexible.
Examples of revolving credit:
With installment credit, you borrow a specific amount of money and repay it in set monthly payments over a designated period. Also called “closed-end credit,” “installment loans,” or “term loans,” installment credit typically comes with fixed terms and interest rates. Borrowers like this type of credit because it offers clear, predictable payments, which makes budgeting easier.
Examples of installment credit:
Open credit refers to accounts that must be paid in full each month. These accounts are different from revolving credit because they don’t allow you to carry a balance forward—everything is due by the end of the billing cycle.
Examples of open credit:
By combining these three types of credit, you demonstrate to lenders that you can manage diverse financial obligations responsibly.
Having a healthy credit mix is one of the easiest ways to maximize your credit score, but where should you start? At Academy Bank, we offer a full range of financial products to help you diversify and build your credit profile, all under one roof.
Here’s how Academy Bank can help:
At Academy Bank, we are more than a bank—we are here to support your financial goals. Whether you are building credit, securing a loan, or managing your money, we have your back.
Visit Academy Bank and start building your credit mix today!