do I need a credit card to build credit?

I have an excellent credit score (726-830) and I haven't had a credit card in over two years. Before that I had one for maybe 3 years and rarely used it. I am living proof that you do NOT have to have a credit card. I refuse to get a credit card and I've talked to so many people who say they wouldn't use one but they "need to have one to build credit."

image from fearlessmen.com

My wife had a credit card before we were married. When we got married, we combined accounts and she cancelled her card. She's never had late payments on anything, but now her credit is worse than mine just because she cancelled her credit card. However, her score is still really good. How does it make sense to lower her score when she cancels her card? I see that as a commitment to stay out of debt and live within her means. I guess the credit bureaus have a different opinion.

Roy E. Christensen, founder of Beverly Enterprises, Inc., GranCare, Inc. and Covenant Care, Inc. and current Chairman of the Board for Ensign Group,  once taught me that I am building credit with any rent and bills that I am paying regularly. As long as I pay in full and on time, my score will stay up. If I get behind on my payments, my score will drop. See the similarity to credit cards?

The reason I say no to credit cards is because of this simple principle:

I spend money when I have it.

My dad taught me this principle when I was a kid. I would see something I wanted in the store and I would beg, "Dad, this is a really good deal! Will you please get it for me now and I can pay you back later!?" He would never let me do it and it was so frustrating.Now I am more grateful for this than ever.

Just think about it people. You can't spend what you don't have. Credit cards give you the sense that you just received free money. Credit card companies want you to spend what you don't have. Why? Let me tell you. According to indexcreditcards.com the average consumer credit card rate for the overall market is 16.89 percent. So when you reach your $5,000 limit and only pay half of it on time, you won't just need to pay the other $2,500 later. You will be fortunate enough to get to pay an extra $422.25 for a total of $2,922.25. Talk about free money, right?

Folks, tell me why you need a credit card. You don't. If you have one, it might take a change in lifestyle to get rid of it, which could be painful. It will be worth it though. Tell me what you think.