How to write a credit report explanation letter

When consumers experience financial difficulties that cause their credit rating to go down, they may have trouble getting new credit, a new job or insurance at a reasonable rate. Many lenders are willing to help a consumer in financial trouble if he or she can give a clear and reasonable explanation for the missed payments, and offer assurances that the problems have been remedied. The first thing the consumer should do is check his or her credit score.

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.

How To Write Letter Of Explanation To Mortgage Underwriters. This BLOG On How To Write Letter Of Explanation To Mortgage Underwriters Was UPDATED On September 6th, By Gustan Cho. When home buyers apply for a mortgage with prior questionable items on credit report, mortgage underwriters may need clarification. This BLOG On How To Write Letter Of Explanation To Mortgage Underwriters Was UPDATED On September 6th, By Gustan Cho When home buyers apply for a mortgage with prior questionable items on credit report. 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. A good letter of explanation needs to follow certain guidelines if it is to be effective.

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.

How to Write a Letter of Explanation for Credit Problems

Step Write "Sincerely," followed by your name.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) –.

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.

How To Write A Good Letter Of Explanation To My Lender

A good letter of explanation needs to follow certain guidelines if it is to be effective. Here is a sample letter to explain late payments when you are applying for credit.

Credit. Credit Repair. Credit Repair Overview; The basic premise of this explanation letter is to address: Free credit report audit on all your accounts;.

Letter of Explanation for Credit Inquiries (please use additional forms if needed for more account inquiries) Date: This letter is to address all credit inquiries reporting on my credit report .

how to write a credit report explanation letter

A letter of explanation is a word letter that sits on file at the three major credit bureaus; TransUnion, Experian and Equifax. This letter then gets sent out to anyone requesting a copy of your credit report, providing context for any negative credit entries. This BLOG On How To Write Letter Of Explanation To Mortgage Underwriters Was UPDATED On September 6th, By Gustan Cho When home buyers apply for a mortgage with prior questionable items on credit report.

How to Write a Letter of Explanation for Credit Problems