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These credit products fall under two main categories: revolving credit and installment credit. Lenders like to see that you have both because it shows them you can manage the many different discover loan that come with borrowing all kinds of debt.
While these two kinds of credit are different, one is better than the other when it comes to improving your credit score. No matter the size of the balance, the interest rate or even the discover loan limit, revolving credit is much more reflective of how you manage your money than an installment loan.
To maintain a good credit scoreit's important to have both installment loans and revolving credit, but revolving credit tends to matter more than the other. Installment loans student loans, mortgages and car loans show that you can pay back borrowed money consistently over time. Meanwhile, credit cards revolving debt show that you learn more here take out varying amounts of money every month and manage discover loan personal cash flow to pay it discover loan. Lenders are much more interested in your revolving credit accounts, says Jim Droske, president of Illinois Credit Services.
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