How to write a credit report explanation letter

You can use our sample letter as a guide if you asked to write such a letter.

How to write a credit report explanation letter

how to write a credit report explanation letter

Share on Facebook Your mortgage application must pass an underwriting process before you can get a loan. Lenders require you to explain risky aspects of your credit history and any discrepancies on your application. They request written letters of explanation for late payments, bankruptcies and foreclosures to determine whether circumstances beyond your control led to your financial troubles and whether your credit problems are likely to recur.

Lenders may also require an explanation for conflicting information, such as different names, addresses or employers that appear on your credit report. A man is typing on a keyboard. Your mortgage loan officer or a loan processor who prepares your application for underwriting, can provide you with a copy of that request.

Take note of the exact accounts or discrepancies the lender asks you to explain, as you must reference these in your letter. For example, "I am writing to explain the late payment reported in Jan. Base your answers on facts, not speculation, assumptions or falsehood.

Be specific about events -- job loss, injury, illness, divorce -- and their dates. For example, you can explain that you saved money and paid off the account after the late payments; that you have saved money and kept up with all new credit obligations since the bankruptcy; or that you have lived beneath your means and saved enough for a down payment and reserves since the foreclosure.

Step Write "Sincerely," followed by your name.Since, according to Consumer Report, about half of credit reports have errors, the consumer should verify their credit score before they write a letter explaining credit problems.

Letter of Explanation sample - myFICO® Forums -

A good letter of explanation needs to follow certain guidelines if it is to be effective. In this guide, we’ll go over how to write a letter of explanation. What is a letter of explanation? If you have derogatory marks or gaps on your credit report, you may be asked to submit a letter of explanation to your loan underwriter that describes, clearly and concisely, the circumstances that led to those negative entries.

Many potential employers check credit reports today, so if your credit is dinged, adding a word letter of explanation to your credit report can set the record straight Job hunting? 7 tips for adding a word explanation letter to your credit report - Jan 20,  · This letter provides explanations for each derogatory item on my credit report obtained in connection to my mortgage application.

1. Late payments dated 12/07 and 01/08 in regards to current ACME Credit Union (Auto loan) –.

Write a short introductory paragraph explaining the purpose of the letter. Use facts to explain the credit issues State the explanation for each issue as factually as possible.

A credit explanation letter should be clear about each incident, include the date and amount, give a concise explanation and what is being done to prevent it from happening in the future.

how to write a credit report explanation letter

A credit explanation letter is often requested by entities, such as a potential employer or mortgage lender, who.

How to Write a Letter of Explanation for Credit Problems