<p>Hmmm, TD, I’ve <em>always</em> paid off my credit card balance in full every month, and I’ve always had good credit. In fact, when you apply for the large ticket items later in life (car, mortgage), they want to know whether you pay off the balance every month. </p>
<p>A credit card creates credit history, and if you’re not too much in debt (either paying off every month or doing as TD suggests), you get good credit, as long as you meet that monthly minimum and then some. The substance of a credit report, however, comes when you buy a car or house, and THEN pay on time every month. That’s when you have lenders falling over themselves to take out loans and to give you better rates.</p>