Recipe for a “healthy” credit report

Kate MarroneInfo for Home Buyers, Info on Home Financing

What does a “healthy” credit report look like?

I’ve read very similar opinions on the “ideal” credit report from a variety of courses including Money magazine, the free annual credit report website, a few different finance books, Kiplinger’s, and others.  The general consensus from experts regarding a “healthy” credit report is as follows:

2 installment loans – home mortgage and auto loan are most common

3 revolving accounts with balances – credit card accounts

All balances should be kept at or below 30% of the maximum line of credit

Ideally, balances at or below only 10% of the maximum line of credit are best

It is better to have 3 cards, each using 20% of their max rather than one card using 60% of it’s max

Additional revolving accounts beyond 3 are okay, as long as not carrying balances

No collection accounts

Collections aren’t good but there are differences.

Medical collections are not as bad as other (utilities, etc.) collections

No public records

No foreclosures

No late payments