I just passed year two of my car loan and I'm planning to use my tax refund to pay it down. This will most likely shorten the loan a year.

I'm thinking about how I can keep my credit score and such going up after I finish this loan because this is the only account at the moment that I have opened.

I have a good friend that has struggled with short credit history costing him more though he has good credit and I really don't want to be in that boat when the time comes to signup for a mortgage.

I plan on keeping my car as long as possible so is getting a credit card a good solution? I have made it this far without opening a credit card account.

  • What other bills do you pay on a regular basis? Cell phone? Rent? Student loans?
    – Freiheit
    Mar 26, 2018 at 20:38
  • Also consider reading up on Dave Ramsey. He advocates for a no-credit and no credit-cards lifestyle. His approach is not perfect but if your desire is to not have a credit card then the Ramsey plan may work for you.
    – Freiheit
    Mar 26, 2018 at 20:39

3 Answers 3


Yes, get a credit card, or even two or three. Especially since it seems as though you have the self-discipline needed to pay off the balance in full every month. (If you don't, get one with a low credit limit.) They're a considerable convenience for things like on-line purchases.

  • Your second sentence is key.
    – TTT
    Mar 26, 2018 at 22:08

You can build credit without a credit card. Some examples are listed in this article . The two main things you need are:

  1. To be paying for something you already received. For example paying an electric bill after you used the electricity or paying off a credit card after you got the money for a purchase.
  2. For the entity you're paying back to actually report those on time payments to the credit bureaus.

Some utilities and some landlords will report payments. Lenders will. Some bank accounts or transactions are reportable. Cell phone payments and ISP contracts should be reportable too.


Don't get a credit card. Do you own cell phone or pay other utility bills? Those are also included in your credit history. Don't worry about maximising your credit score. It's not as important as the credit card companies would have you believe.

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