Is There Any Way of Improving My Credit Score?

Question:

I have credit union loans- one of approx 5k and one of 6k. I heard about the 3 letter process but I actually work in one of the credit unions. So I can stop paying. I tried to apply for a credit card to pay of the loans and then eventually do the 3 letter process but I cannot get a credit card because of my income and credit score. I also have another purchase I’m paying off at 120 per month.

Is there any way of improving your credit score? Or any loans or credit cards that would approve this.

Denise

Answer:

Denise,

I am aware of the “3 letter process” and that is something that is more of a legal matter, or would require legal advice. In addition, there are some questions as to if this process is something that is accepted, and/or legal.

I have a few questions:

• Can you afford to repay the loans in question?
• If not, when what has changed to affect the affordability?
• If you can afford to repay the loans, why try to have them removed or not paid?
• If you work for the Credit Union you owe money to, and not paying the loans, it may affect your employment. You need to read your work contract, and any loan terms and conditions you have.
• Trying to not pay loans, but yet improve your credit score, do not go hand-in-hand. They are opposites.
• What is your current credit score?

Trying to do a balance transfer or to consolidate the loans, may be a way to reduce the monthly payments, but it does not address the underlying issue(s), or magically get you out of debt. However, it can be a way to improve your monthly finances.

There are ways to improve your credit score, and one is to repay the accounts you have in accord with the terms and conditions outlined for the loan.

One is to get on the Rental Exchange, you may wish to read this to see the factors that you can use to increase your credit score.

If you can get back to me with some answers to my questions, and some additional information, such as what is your goal, I’ll look more into this for you.

Regards,

Jon