AcuFi, and Founder Nicholas Kohlschreiber, On How to Build Credit Without Accumulating Debt


IRVINE, CA / ACCESSWIRE / February 9, 2023 / A common misconception exists regarding the importance of having a good credit score. The majority thinks that if they don't plan on borrowing money from a bank, a good credit score is not needed. But the team at an innovating debt resolution firm founded by Nicholas Kohlschreiber, AcuFi, says that this erroneous notion has placed countless individuals in difficult situations. "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, according to AcuFi and Nicholas Kohlschreiber. 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.

AcuFi points to credit cards being 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," Nicholas 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, as explained by the team at AcuFi and Nicholas Kohlschreiber. 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.


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Contact Information:
Nicholas Kohlschreiber


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