Use Credit Cards Frequently
The more you use your credit card the higher your credit card score will be. Every time you pay cash instead of using your credit card to pay for a purchase you are wasting an opportunity to boost your credit rating (that is provided you make your payment on time in the first place.)
The reason why you should use your cards as actively as possible is because lenders need to see that you can pay your bills on time. If nothing appears on your credit report for a period of time because you have only been paying with cash, you may be denied credit. This is also true if you insist on paying with a debit card that looks like a credit card but is not a credit card.
If you are trying to build a credit history it is especially crucial for you to use any available credit that you have and pay it back early. If you only use cash you may not even have the minimum credit history to be qualified to even receive a credit score from a credit-reporting agency.
The minimum information that you need on each credit report to keep it active is just one credit account that has been open for six months and one credit account that has been updated by a creditor within the past six months. Otherwise your FICO score may transfer your credit profile into a score group that does not qualify for credit.