Some Americans adhere to the belief that maintaining a single credit card is the optimal approach for credit scoring and financial management. However, the reality is that cultivating a variety of credit types can be more advantageous for enhancing your credit score, and having more than one credit card often maximizes your potential rewards. Your credit mix constitutes its own category within the FICO score, accounting for 10% of the overall score. Demonstrating your ability to responsibly manage different types of credit, including installment loans, credit cards, and retail accounts, can lead to an improvement in your score. In a similar vein, possessing diverse types of credit cards that offer rewards in various categories like groceries, gasoline, or streaming services can optimize the overall benefits derived from your cards.
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