Before you treat your discrete variables as categorical, consider whether you should at least evaluate the linear component by treating it as continuous. For variables with partial orderings, or with both linear and nonlinear components, consider combining continuous and categorical variables together.
Believe it or not, your credit score will be higher if you have 6-10 credit accounts than if you have just one or two. Here are action items to consider to improve this section of your credit report: 1  Pay on time. 2  Credit cards. 3  Utility bills. 4  Library dues.
Credit Cards and Loans. Credit cards and loans can help you establish and improve your credit score while helping with unexpected purchases. But if not handled responsibly, you can get into a lot of debt. Understanding Credit Cards. Remember, a credit card is not free money. It's a loan with an interest rate attached to it. The longer you take to pay off the balance, the more interest you pay. So before you use your card, know the real cost of the item.