Yep. I am debt free, yet still have an extremely high credit score. I charge every little thing (as well as all the big things) on my credit cards, but pay in full every month. For years and years, my credit history shows me as "paid or paying as agreed". Yet, I have no debt. The cars are paid, the boat is paid, the toys are paid and the mortgage is paid. Yes, you must take on "obligations" in order to build your credit score, but you most certainly do NOT have to take on debt. In fact, that is how most people ruin their credit and often, their entire lives.
Like mentioned above, someone (as most Americans do) could accumulate massive debt while paying the bare minimum requred, and still be given additional credit to accumulate additional debt, simply because they have shown a history of paying. Yet their debt load continues to increase, they pay incredible finance charges, and creditors line up to extend more credit.
I, on the other hand, seek out the best reward cards that carry no annual fees, and pay in full every month. I get to use their money free of charge each month to purchase what I would purchase anyway...then get additional cash back for doing so. All the while, my credit score remains excellent and my debt load zero.
Like was also mentioned above, young people in their 20s, who have yet to develop good financial sense and experience, are the targets of these creditors. They will make tons of money off this demographic and by the time these 20-somethings are 30-somethings, they will be scrambling to remain above water.
So go ahead, take on debt. After all...how else are you going to "build your credit"?
BTW, Crizz...you are most certainly the exception, and I applaud you for being educated and responsible at your age. I know there are many like you, but unfortunately, I think you would agree that you are probably in a minority when you consider most Americans...and especially most younger people who have yet to acquire this education and skill of being financially responsible. Heck, many people NEVER acquire this responsibility, so perhaps I am being overly critical of younger people. But again, you are to be congratulated for being driven enough to succeed in this area.
One last edit....while I might have been overly simplistic in saying you don't have to take on debt to get a good credit score...obviously you have to take on some type of debt in order to repay it...even if it is only the credit card you pay in full every month. It is the accumulating debt that continues to increase due to finance charges and additional debt load that buries most people. And many of these people continue to "pay as agreed". So yes, you have to have an obligation to pay in order to do so, but you do not have to accumulate loads of debt.