By John Campbell

The types of credit accounts you have open will be taken into consideration by the credit bureaus when they compute your credit score. Your revolving credit accounts and any installment loans in your name will account for roughly 10 percent of your overall credit score.

Unfortunately, there is no Golden Rule as to how many accounts will have a positive impact on your credit score. Depending on your own credit history, some accounts may be weighed more heavily in determining your score than others. Even the percentages of account mixes aren’t set in stone. Nobody seems to know the exact formula the credit bureaus use to determine our scores and the credit bureaus aren’t sharing that information either.

Although the ideal credit mix is somewhat elusive, having three or four credit accounts that you use in rotation and one or two loans that you make regular payments on may be a good idea. The credit bureaus want to see that you can manage debts, both large and small, before they’ll ever raise your credit score.

It may take years for you to find the ideal balance of credit accounts that will have the most positive impact on your credit score. Be patient, pay your debts on time, and avoid opening too many credit accounts at once. A better credit score will eventually be your reward; a reward that will pay off even better than you may realize today.

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John Campbell is the writer and editor of CashBuzz, A financial portal for the rest of us. Check out cashbuzz.com for the latest articles on money management and tips and tricks that can help improve your finances. This article may be reprinted on your Web site if the copyright, author information and active link are included.