Here's the formula to work the credit scoring system without changing your spending habits, paying any finance charges, or accumulating credit card debt.

Step 1: Identify a monthly recurring bill (i.e. your cell phone bill w/ Verizon that charges you $100/month)

Step 2: Use your "credit card #1" that has a zero balance to automatically pay your $100 Verizon bill in full each month (requires you to instruct Verizon to use this credit card for your monthly payment)

Step 3: Contact your credit card company and set up an autopay for your FULL BALANCE each month (to be paid from your checking account automatically). If the Verizon bill is the only charge you make each month, then your autopay of $100 will be paid from your checking account to your credit card.

Results are as follows:

1) You use your "credit card #1" each month (which keeps this trade line in a reporting phase - which influences 15% of your credit score)

2) You pay your credit card debt on time (which helps 35% of your credit score)

3) You keep a low ratio of utilization on this credit card (i.e. $100 balance divided by $5K+ credit limit - which influences 30% of your credit score)

4) By paying your debt "in full" each month, you don't pay any finance charges to your credit card company.

Bonus:

You can do the exact same thing with "credit card #2" on a different recurring monthly bill (i.e. your gym membership).

By default, your credit scores will continue to rise even though you didn't change any of your spending habits! Thanks for tagging me on this question Thomas J. Nelson, REALTOR ® CRS,ABR,PSA,RCS-D, ePRO 

Jason E. Gordon taught me years ago how to play the Credit Score Game. 
Here's a taste: To beef up your credit score, remember that cash isn't king—credit management is. Start by consistently using your credit cards, ensuring that you keep long-held accounts open and maintain low or zero balances. A key strategy is to make purchases and then promptly pay them off. This demonstrates responsible credit use and boosts your score over time. Additionally, aim to keep your credit utilization below 30% of your available limit and avoid closing old accounts, as a longer credit history positively impacts your score. By taking these steps, you’ll be on your way to a stronger financial profile.

That's actually why we haven't paid off our mortgage.  We could, but we want the "credit"

I have never been totally out of debt.

I will always use my credit card...and pay it off to avoid added costs.

Seems to work for me.

I am at the top of the heap in credit ratings Richie Alan Naggar . I have no mortgage and I pay my CCs off every month. You would think you and I would be in the same boat but I've never had the experience you are having.

I've always have carried a little debt, regardless! 

Like I've said before "Borrow money to purchase items that Depreciate, use YOUR OWN money for items that Appreciate!"

"The system" is rigged that way, Richie Alan Naggar 

     If you don't borrow money, and stay in debt, the Credit Bureaus will drop your credit score.  As you have learned, that affects everything from internet service to your automobile insurance rates.

    How can we beat them at their own game?   LMK if you find a way!

Yes Richie, debt is good, lol. Banks and other credit institutions like to see a history of consistent payments. 

Personally, I believe if people can live on their income with no need for credit, they should be rewarded - not penalized. I am not a fan of the current credit check/score system at all. That being said, using credit in the way Jason indicated is a great idea.

The wife and I have a number of bills on auto pay, some to credit cards which are paid in full monthly. It works for us and we have high credit scores. I have one credit card with no limit and it pulls my score down below my wife's even though I pay it off monthly on the billing date long before the due date. Go figure!

Being debt-free should be everyone's #1 financial goal, Richie Alan.

I agree that paying cash should be more meaningful in achieving a perfect credit score. Sadly, I learned long ago that you need to demonstrate responsible use of credit rather than cash.

By paying your bills on time (MONTHLY) and utilizing only 25% of your available credit on your card, you can reach that perfect credit score very quickly. 

On another note, I had a buyer once that the lender and I both instructed her (she was a CPA!!) NOT to cancel her credit cards, simply PAY THEM OFF! She did not listen, cancelled them and no longer qualified to buy in the price range she had been looking - and found her dream home!!

842 FICO. Being 'debt free' is not ideal as you've evidenced. Being in control of debt is. Have a little used credit in case you ever need it!

I use a credit card(s) for most every purchase and we pay them off every month so our credit rating is very high. I only use cards that provide a cash back or points provision. EXCEPT for my BJ's Wholesale card that provides a 15 cent per gal discount on gasoline (and well placed products that offered 10 cents per gallon off fuel)) Yesterday I got 45 cents off, per gallon of gas. I paid $2.529/gal.

Credit is a vicious beast, I dont agree with the rules, unfortunately they dont ask for my opinion when making the rules.

My Credit is EXCELLENT - I use credit cards and pay them off in full each month.  That keeps the "system" working for me. 

I had a client who was much the same way.  They did not own a credit card and they subscribed to the philosophy that if you can't pay for it then and there you either don't need it or shouldn't buy it.  Great philosophy!  They had zero debt, several kids with more on the way, and lived very well.  They did have to go into debt, but it is a good type, to purchase a house, and since they had no credit what-so-ever they went to the credit union where they banked and were able to get a loan through them.  It was trickier, but it happened.  It wouldn't surprise me if they've paid off the house by now too.

While I do subscribe in part to their philosophy prior to knowing that was their philosophy (long time friends), I do believe in having credit cards and paying them off each month.  My credit score is very good and that is actually something of importance to me and I'd want anyone I married to have a good score as well, as they combine scores when you marry and I don't want to lose mine.

That happened to me too, Richie. When my husband passed away, I decided to live debt-free. I canceled the credit cards and had no debt. When I went to rent a car during a travel trip, I discovered they don't take anything but credit cards... not debit cards, nor cash. It was embarrassing to ask a friend to use his credit card for the car. I also found out my credit score wasn't very good because I didn't use credit. So, when I got home from that trip, I ordered a credit card and another one.  I have been using them and paying them off in full each month. My credit score is now in the exceptional range.

We had an Insurance Company deny us coverage because we haven’t had car payments for more than 5 years ??? Liberty Biberty 

I'm in the system but pay things off as well. I've had clients who don't have credit because they're debt free and don't use credit at all. If they have enough cash they can usually get some kind of loan but not as much as what they might qualify for if they had a great credit score.

I always pay all my business expenses with a designated credit card with a coordinating account to pay back. I pay food and misc personal expenses with another one and hotels, flights, trip related with a separate one. I almost never pay cash since I'm not paid with cash, also I like a document trail of all my spending:) 

I'm "close" to debt free, but never carry a balance of credit cards, but I do use them so sometimes a balance is reported which I think is a good thing.  Some of my cards are decades old.

I am debt-free as well, and did see my credit score decrease when I paid the house and car off.  I do keep 2-3 credit cards active, and charge monthly, and pay them off monthly.   These days I still have a very high FICO score.