What is the best way to build credit?

My parents told me something they had discussed with a associate of one of their friends. The associate worked in a credit bureau. He said people like to make it sound as if one has to buy a new car, and show that they can make monthly payments to prove they have good credit, to establish good credit. But in truth, the first thing 'they' look for is if the person pays their bills on time. The asociate said if a person pays their bills on time, most of the time that is good enough. That gives a person good credit all by itself.