Each of us have various open accounts in our credit files from time to time. Well, whether we want it to be the case or not, the credit scoring system applies 85.0 credit scoring points to the types of accounts. This represents 10% of all credit scoring points.
Keep in mind that it doesn't matter for this portion of the score (85 points) whether we have paid these accounts well or not. It only matters "what" type of accounts we have. The scoring system likes to see a balanced credit file.
Ideally a consumer should have 5 open accounts. One Mortgage, two Personal loans, and two Credit cards. Anyone with no mortgage....no 85 points (you will get some but cannot get all 85). Anyone without two personal loans (car loans, bank loans, student loans, etc.) will not get all 85 points. Anyone who has closed out all their credit cards and does not keep two open credit cards....will not get the full 85 points.
The reality is that the scoring model is much like a spoiled little brat. It gets what it wants (5 open accounts, balanced how it deems to be perfect)...or it takes away your credit scoring points.
What a spoiled little brat!