Which of the following contributes to building a positive credit history?

Using a variety of credit types is beneficial for building a positive credit history because it demonstrates to lenders that you can manage different kinds of credit responsibly. This includes a mix of credit accounts, such as credit cards, auto loans, installment loans, and mortgages. When lenders see that you can handle various types of credit, it builds trust and can positively impact your credit score. A diverse credit portfolio reflects your experience and reliability as a borrower, which is a key factor in credit scoring models.

In contrast, paying bills late negatively affects your credit history, as timely payments are essential for good credit. Having many open accounts can be misleading; while having some credit diversity is good, too many open accounts can actually raise concerns about your financial management. Not using credit at all would limit your credit history, as lenders require a track record of credit usage to assess your reliability as a borrower. Therefore, the most effective way to build a positive credit history is through the responsible use of various types of credit.