Final answer:
A consumer with a mortgage loan, student loan, car loan, and credit card account may score higher in the credit score category of credit mix.
Step-by-step explanation:
- A consumer with a mortgage loan, student loan, car loan, and credit card account may score higher in the credit score category of credit mix.
- Credit mix refers to the different types of credit accounts a person has, such as mortgage loans, student loans, car loans, and credit cards.
- Having a diverse mix of credit accounts shows that a consumer can handle different types of credit responsibilities.
- This can positively impact their credit score as it demonstrates their ability to manage various types of loans and credit cards.
- In contrast, if a consumer only has one type of credit account, such as a credit card, their credit mix is limited, and this may negatively impact their credit score.
- It is generally recommended to have a mix of different types of credit accounts to enhance creditworthiness.