Credit inquiry explanation letter template

If you wish to know about the credit policy of a bank then you write credit inquiry letter and what you receive in return is credit inquiry explanation letter which kind of explains the credit inquiry. The purpose of credit inquiry explanation letter mortgage is for the mortgage company to decide whether the applicant qualifies for a loan or not. We have come up with credit inquiry explanation letter template along with guidelines on writing a credit inquiry letter of explanation example to create your own letter.

We are writing this letter in relation with your loan application for car. Thank you. This letter has been penned down to explain the reasons and problems that caused delinquency in my credit record.

Before going further, I would like you to look at the enclosed documentation of the applied loan and my eligibility score as a potential borrower. The delinquent credit inquiry shows that the potential borrower is not a trustworthy person and thus the institution does not find it appropriate to credit the borrower with funds. Therefore, I intend to explain to prove my competency and capacity as a reliable client.

The delinquency in my credit record took place because of a sudden change in my financial schedule. Therefore, I could not give back my credit funds that caused staining my credit report. I persuade the concerned authorities that this shall not repeat again, and my credit funds shall be paid back precisely and inevitably on the proffered schedule. Thank you for providing me this chance to explain.

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. According to the Fair Credit Reporting Act , consumers have the right to receive correct and complete information about their credit status from the credit bureaus.

Consumers have the right to know what is reported on their credit report, and if there are mistakes, the credit bureaus must investigate a challenge. Accurate adverse credit information remains on the credit report for seven years, and bankruptcy remains for 10 years.

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.

The facts should be accurate — the consumer should not exaggerate their financial troubles or tell an untruth. The consumer should take responsibility — if the reason for the financial difficulties are mistakes made by the consumer, he or she should clearly state that they were at fault. If the consumer was a victim of a scam or really did innocently get behind in payments, they should clearly explain the situation and to whom they reported the incident.

The creditor may not feel positively inclined to someone who censures a fellow creditor. When consumers get into debt that they have difficulty repaying, they may become angry and try to blame others.