Building Credit – Which Lines of Credit are Best?

What lines of credit are best for building credit? Find out here!

These days there are many lines of credit available for consumers. The question asked though is what lines are best for building credit? There are a number of factors to consider when taking the steps towards applying for the right type of credit. Over the next couple of weeks we’ll be sharing information and tips on how to distinguish the right lines for you.

Installment Lines of Credit vs. Revolving Lines of Credit

The first important thing to know is the difference between installment and revolving lines of credit. Your lines of credit will fall under one of these two categories. Each one will work and reflect differently on your credit report. An installment line of credit is a consumer loan in which the principal and interest are paid on a regular (usually monthly) schedule. The payments are called “installments” and are all for the same amount. Installment lines of credit will consider loans such as your mortgage, car loan, and any other loan account. A revolving line of credit is an account on which payment is any amount less than the total balance and the remaining balance carried forward is subject to applicable finance charges. Revolving lines of credit will consider credit such as major bank credit cards, department store credit cards, and any other credit cards. Be sure to also consider that debit cards do not fall under either of these categories as debit cards do not reflect on your credit report.

To start building credit, a revolving line is best.

So what is the best line for building credit? It’s important to understand that all lines will help establish history, but when considering someone who is just starting to build credit, or is recovering and needs new credit to reflect, a revolving line of credit is best. So now that we have set a goal to obtain a credit card, what kind is needed? Visit our blog next week as we will be covering the different types of revolving credit and how they affect your scores and reports. Have any questions or comments? Share them with us below!




MSI NEW LOGOMSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.

 *The information in this article has been provided strictly for educational purposes.


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