These two types of credit affect your credit score differently. With revolving credit, it’s important to keep your credit utilization low-or, in other words, don’t use up too much of your credit limit. Borrowing usage will generally have a greater impact on your credit score than the debt you owe on an individual installment account. However, making timely and regular payments on your installment loan can also improve your credit score over time.
As we mentioned above, length of credit history accounts for 15% of your FICO score. (more…)