Debt settlement or negotiation allows borrowers to work with creditors to lower interest rates or settle outstanding balances.
Payment history is the most significant factor affecting a credit score, as it reflects how consistently debts are paid on time.
The debt avalanche method prioritizes paying off high-interest credit card debt first, reducing overall interest costs and speeding up debt repayment.
Credit analysis evaluates a borrower’s financial history and ability to repay debt, helping lenders assess risk and make informed decisions.
The DTI ratio helps determine a borrower’s ability to manage and repay debt by comparing total debt obligations to income.
A good credit score improves access to favorable loan terms, lower interest rates, and better financial opportunities.
