Do You REALLY Need To Get A Credit Card To Build Credit?

This month, our editors asked a team of experts the questions that have been on their minds. The below is in response to the question: “I don’t own a credit card—too terrified I’ll mess things up! If I pay rent, do I really need a card to build my credit?”

With credit card debt causing grief for so many Americans, your fear makes sense. However, not having a credit card means you can’t show you can responsibly use one, and this can have a negative impact on your FICO score, which is used in more than 90 percent of “lending transactions.” Without the plastic, your limited history could prevent you from getting approved for a home mortgage or for borrowing money at a good rate. (It could even sabotage your relationship.)