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Not a stupid question at all. Paying bills does not create credit history. Using a debit card does not create credit history. Credit history is only created by credit (borrowing money and paying it back). Not paying your bills may impact your credit if the mrechant reports the delinquency, but they do not report if you pay on time. So, credit cards, car loans, mortgages, etc. will create credit history. Most people think of credit cards first because they are the most common and are easier to get. If your friend's dad has good credit, it is probably because of a car loan or a mortgage. If he didn't have some history of borrowing money and paying it back, he would have no credit history at all. Another myth is that carrying a balance will improve your credit. It won't, that just costs you interest.

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by R T

3 weeks ago

Asker's Rating: 

You can get a secured card. They are fairly easy to obtain through your local bank or credit union. Walk in and talk to a loan officer face to face. Paying your installment loans on time has probably built your friends fathers credit. You can get a good credit score with a good mix of installment loans(cars, real estate...) but to have the highest possible score you will need some type of revolving account.

by timothy p- 3 weeks ago

There's no such thing as "perfect credit" so you can immediately dismiss your silly friend's comments about credit. Most bills do not show up on a credit report unless you don't pay them. If you don't have any lines of credit, you don't have good credit or bad credit, you have no credit history--which is almost just like bad credit. Any adult without at least one credit card is irresponsible . . . unless they keep $10,000 - $20,000 in cash in the bank. Not coincidentally, adults without credit cards are extremely unlikely to have that kind of cash on hand.

by Gabriel- 3 weeks ago