What is Credit Mix? How Good Mix of Credit Can Boost Your CIBIL Score?

Many financial institutions check your credit score whenever you apply for a loan. Your CIBIL score provides complete information about your creditworthiness and repayment ability. As a result, if you are having a good credit score, then your lender will consider you as a low-risk borrower and will instantly approve your loan application.

Additionally, a good credit score will help you in availing of a higher loan amount at a lower interest rate. On the other hand, a low credit score can reduce the chances of your loan approval. In general, several factors affect your credit score and one amongst them is your credit mix.

What is a Credit Mix?

A credit mix refers to the holding of various types of secured and unsecured loans. It is one of the factors that is usually taken into consideration while determining your credit score. Having a diverse credit mix is advantageous to your CIBIL score. So, ensure that your yearly credit report is free from errors.

Types of Credit

There are two types of credit – Revolving and Instalment. 

  • Revolving credit – For this credit type, there is no set balance or end date. You can pay the minimum amount every month or even more than the minimum amount, but it is not mandatory. The most common type of revolving credit is the credit card.
  • Instalment credit – This type of credit has an expiry or end date and has a payment due every month. Examples of instalment credit include mortgages and other types of loans.

How Can a Good Credit Mix Help in Boosting Your Credit Score?

If you are having both revolving and instalment credit, then you are having a good credit mix. For example:

If you are having a personal loan, credit card and auto loan under your name, and making monthly payments, your credit score increases easily. Along with that, you should use your credit card at a 30% utilisation rate. So, remember to judiciously use your credit card, by making payments on time. This way you can improve your credit score.

You can also use your credit card more than the utilisation rate, but it is not considered optimal as it can pose a risk factor for your credit profile.

By being punctual with your payments, your lender will get to know about your creditworthiness and how well you have managed your credit accounts. Furthermore, your lender will report your good credit behaviour to the credit bureaus. This will help the credit bureaus to analyse your repayment behaviour and will therefore provide a detailed report on the way you have managed your credit accounts.

Before applying for any additional credit accounts, you must be aware of the purpose behind availing the credit. A good credit mix of accounts along with your timely repayment behaviour will let your lenders know how financially responsible you are! But on the other hand, if you fail to repay the borrowed amount on time, then your credit score will be negatively impacted.


Maintain a healthy credit score, and ensure that you are reviewing your credit and keeping track of your credit report. Also, it is highly recommended to check your CIBIL score for any errors and keep track of your records.

Moreover, if you are trying to seek any financial assistance, FlexSalary is there to cater to all your financial needs. FlexSalary is a loan offering from Vivifi India Finance Private Limited, a non-banking finance company (NBFC) registered with the Reserve Bank of India (RBI). With FlexSalary, you can repay the borrowed money in flexible payments at your convenience.


1. How to maintain a healthy credit mix?

By keeping your account open and using it occasionally, you can maintain a healthy credit mix. 

2. Why is it important to have a mix of credit types?

Credit mix is important because it shows lenders that you are capable of managing multiple credit accounts at the same time.

3. What are some examples of credit mix?

Diversify your credit mix with a combination of installment accounts and revolving credit accounts. Examples include:

  • Revolving – Credit cards and retail accounts.
  • Installment – Personal loan, business loan, and auto loans.

4. How often does a credit score change?

A credit score can change as often as the information in your report changes, as it is calculated based on the information that is available in your credit report.

5. Does checking my credit score lower it?

No! Checking your credit score will never lower it, but inquiries such as “hard inquiry” can affect your credit score. A hard pull happens when you authorise your lender to check your credit score related to a credit application.