Updated: Aug 17
There are three major types of credit that you may encounter:
Revolving credit: Revolving credit accounts have a set credit limit that you can draw upon, pay back, and draw upon again. A common example of revolving credit is a credit card.
Installment credit: Installment credit is debt that you borrow and pay back in fixed monthly installments. This includes personal loans, student loans, auto loans, and mortgages.
Service credit: Service credit includes accounts where you are provided a service and are billed monthly. This includes utility and cell phone bills.
VIVA Tip - Keeping a broad mix of different types of credit is great for your credit score!