Greentext

Yall are making this more complicated than you need to.

-Using credit does lower your score, yes, because if you already have loans you are less able to pay off additional loans. However, once you are done paying off those loans you will have a higher credit score than when you started

-Not using credit will only lower your credit score because it turns you into an unknown quantity

-Paying back late does lower your score, duh

-Paying back early does NOT lower your score. The only thing is if you take out a loan and then immediately pay it back they will recognize that you didn't really need a loan in the first place. But Paying back mortgages/car finances quickly is a great way to build credit

-Simply checking or looking at your credit score does not affect it. However, making a "hard inquiry"-actually going to the bank or dealership and asking them if you can afford X thing-can lower your score because it's a clear sign you're about to take on more debt. That won't actually hurt you for that particular inquiry though, it only hurts you if you walk away.

-Taking out loans does lower your score because you have burdened yourself with debt, duh

-Repaying loans does NOT lower your credit score, it raises it, unless you no longer have any debt at all and they no longer have a feel for how good you are at repaying.

Having an excellent credit score is not hard. Use a credit card and pay the full balance every month - thats a good idea anyway since the cash back is free money. Take out loans only when you need to and repay them as quickly as you can (also a good idea, since the guaranteed ROI of repaying debt is going to be better usually than when what you can make guaranteed by investing).

Now is America over-reliant on debt? Oh yeah absolutely. But avoid revolving credit card debt and don't get in over your head with mortgages and car loans and you can easily "game the system" and take advantage of cheap credit.