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Nick Kohlschreiber, Founder of AcuFi, on How to Navigate Building Credit Without Accumulating Debt

Tuesday, 29 November 2022 04:45 PM


IRVINE, CA / ACCESSWIRE / November 29, 2022 / While every person has had to borrow money from a bank at some point in their life, there is a dramatic difference between the experience of those with good and those with poor credit scores. One common misconception is that people need not concern themselves with their credit score if they have no intention to apply for loans. "This erroneous notion has placed countless individuals in difficult situations," notes Nick Kohlschreiber, founder of debt resolution platform AcuFi. "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."

People can have excellent credit scores even when they hold multiple credit cards and owe substantial amounts to their bank, Nick Kohlschreiber explains. 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, 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.

Credit cards are among 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 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, Nick Kohlschreiber points out. 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."

Nick Kohlschreiber is a seasoned entrepreneur who has devoted his efforts to developing solutions that enable companies to grow and address the challenges of doing business in the modern world. He is currently channeling his passion for innovation into AcuFi, a debt resolution platform dedicated to helping consumers achieve financial freedom. The company's team of certified debt consultants aims to deliver optimal outcomes through a personalized approach to its clients.


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Contact Information:
Nick Kohlschreiber
[email protected]


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