• Payment history is your record of paying your bills on time, and it accounts for the majority of factoring your credit score. Lenders will report your payments to the three major credit bureaus, which provide the data to calculate your credit scores.
• Credit Mix is whether you have both installment loans (with equal payments over a set period) and revolving credit (variable payments and no set end date, like with credit cards). If you have mostly (or only) credit cards, adding a car loan could help your score somewhat.

If you’re worried about approval, prepare by focusing on the positives in your financial history. Remember, people with major blemishes on their credit are routinely approved for car loans. If you worry that your credit score could keep you from buying a car, you underestimate how much we want to sell you one!