What type of credit is typically considered sustainable for a healthy credit history?

A variety of credit types is considered sustainable for a healthy credit history because it demonstrates to creditors that an individual can manage different forms of credit responsibly. This includes a mix of revolving credit, such as credit cards, and installment loans, like auto loans or mortgages. Such diversity in credit types shows a broader experience with managing debt and payment obligations, which can positively influence a credit score.

Moreover, lenders often view individuals with diverse credit portfolios as less risky, as they have proven their ability to handle various financial products. This balanced approach can lead to better loan terms and interest rates, further contributing to financial health. Managing different types of credit effectively can indicate financial stability and responsibility, crucial for building and maintaining a strong credit history.