IRVINE, CA / ACCESSWIRE / May 5, 2023 / There are very few people who didn't borrow money from a bank. Those who took out a loan had and still have a different experience based on their credit scores. The most widespread misconception is that one doesn't need to worry about their credit score if they don't plan on getting a loan. "This erroneous notion has placed countless individuals in difficult situations," notes founder of California-based innovative debt resolution platform AcuFi, Nick Kohlschreiber. "A good credit score goes beyond securing favorable terms on a loan - it will also affect a person's ability to rent accommodation, lease a car, get insurance, or purchase certain goods or services. While it is true that the modern economy runs on borrowed money, a person can build a solid credit score without accumulating debt as long as they know what options are available to them."
According to AcuFi experts, people can have excellent credit scores even when they hold multiple credit cards and owe substantial amounts to their bank. This has to do with the fact that such borrowers make their payments on time, thus maintaining a stellar credit history. Therefore, one way for a person to build a good score is by consistently meeting their payment deadlines, be it for rent, utility bills, or existing loans. To maximize the effect of such fiscal discipline, AcuFi experts advise including these payments in one's credit file when the option is available - some credit scoring services provide this opportunity, enabling consumers to improve their scores.
AcuFi experts identify credit cards as one of the primary drivers of household debt in the United States, as well as a key factor in calculating credit scores. According to the Federal Reserve Bank of New York, U.S. credit card debt reached $890 billion in the second quarter of 2022, which represents an increase of $49 billion from the previous quarter. "People trying to build a credit score or improve their existing one are routinely advised to pay down their credit card debt and, if possible, cancel all but one card. Since the length of a person's credit history plays a major role in determining their credit score, it would be best to keep open the oldest account," Nick Kohlschreiber says. "In addition, consumers can greatly benefit by signing up for a zero balance credit card, which can help them lower their overall credit utilization ratio and thus improve their credit score."
Another option offered by AcuFi experts for people looking to build or repair their credit score without accumulating debt is a credit-builder loan - contrary to what the term suggests, this is more of a savings arrangement. Experian, one of the three main credit reporting companies in the U.S., offers the following simple explanation: "A credit-builder loan isn't a loan in the traditional sense. When you apply, a lender puts the loan balance you choose into a savings account. You'll make fixed payments toward it over several months, and the lender will return to you the total balance (plus the interest you paid, potentially) at the end of the loan term. That means you're building credit and saving money at the same time."
About AcuFi:
AcuFi is a company dedicated to advocating for consumers burdened with unsecured debt to help them develop viable repayment plans and strategies. It provides debt resolution services to those looking for an alternative to bankruptcy, making it possible to reduce the amounts owed and settle the debts faster. AcuFi representatives work on behalf of the consumer with experts to create personalized debt relief plans.
AcuFi: http://acufi.com
Nick Kohlschreiber of AcuFi Explains the Reasons for Choosing Debt Consolidation over Bankruptcy: https://www.yahoo.com/now/nick-kohlschreiber-acufi-explains-reasons-023000546.html
AcuFi and Founder Nick Kohlschreiber Offer the Best Way to Weather a Recession Through Debt Relief: https://www.yahoo.com/now/acufi-founder-nick-kohlschreiber-offer-162000783.html
Contact Information:
Nick Kohlschreiber
AcuFi
support@acufi.com
949-992-2834
http://acufi.com
SOURCE: AcuFi
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