A: Your credit score is based on your credit payment history. The best way to build good credit is to consistently pay any loan or credit card bills you may have on time. Of course, without a credit score, you may have difficulty getting approval for your first loan or credit card. But there are several ways to establish creditworthiness without having a credit history.

Fair Isaac Corp. (FICO), the leading provider of credit scoring systems, has recently introduced the FICO Expansion score, which takes into account your entire financial history, not just your credit history. So, your first step should be to pay all your bills on time. That includes not just credit bills but also your rent as well as phone, cable and utility bills. You can then ask if your mortgage lender will evaluate you using this Expansion check.

Your second step could be to seek retail credit, which is often easier to obtain (albeit at higher interest rates) than a national credit card. Or you might obtain a secured credit card, which involves depositing a certain amount of money into a savings account or CD, for example $500, as a reserve to guarantee repayment of your credit limit on the card.

Once you have demonstrated that you can reliably pay off your monthly balances, you will have two benefits: you will have established a positive credit history while at the same time keeping your savings intact.

The next step is to apply for a consumer loan or mortgage. It’s always good to have a mix of debt in your credit history. It shows you can handle various forms of indebtedness.

Do not, however, try for the largest possible loan or credit card balance in order to make your credit score more impressive. Creditworthiness is a relative concept: it’s partially based on your debt-to-income ratio. It’s not simply the size of your obligation that counts but also your repayment capacity.

Check your own credit report. Request your free credit report and score from LendingTree.