1/5/22, 1:34 PM
Types of Credit and What They're For | Matthew Littlemore | Finance Blog
a
Types of Credit and What They’re For by matthewlittlemore | Jan 5, 2022 | Blog, Finance, Matthew Littlemore
When individuals are trying to establish or improve their credit, they may not be aware of all of the different types of credit available to them. There are three different types of credit, and to achieve the highest credit score possible, consumers need to have the proper mix on their credit repair. Here’s more information about them and what they’re used for. Open Credit This type of credit generally doesn’t appear on a consumer’s credit report. Open credit mainly consists of utility bills like cable, electric, gas, or water. However, if a consumer doesn’t pay these bills, it may end up on their credit report if their debt gets sold to a debt collection agency. Revolving Credit Credit cards are the most common type of revolving credit accounts. They consist of a credit limit that the consumer can borrow against. Most credit cards don’t require that the individual has to pay the total amount back quickly as they usually only have to make a minimum payment each month that’s just a fraction of the balance.
https://matthewlittlemore.net/types-of-credit-and-what-theyre-for/
1/2