Credit Variations: Letter of Explanation for Inquiries

Have you ever received a letter from your bank, mortgage broker, or potential employer asking you to explain your credit report? A letter of explanation can be a crucial document in situations where your credit history is being scrutinized. But, knowing how to write one can be overwhelming and confusing. Fortunately, BizzLibrary.com has you covered with our letter of explanation template!

The Importance of a Letter of Explanation

A letter of explanation is a formal document that provides a detailed explanation of any discrepancies or variations in your credit report. It is often required in situations where you are applying for a loan, a mortgage, or a new job. This document helps to clarify any negative information that may appear on your credit report and gives you an opportunity to provide an explanation for these issues.

When Do You Need a Letter of Explanation?

There are several situations where you may be asked to provide a letter of explanation:

• When applying for a mortgage
• When applying for a loan
• When applying for a credit card
• When applying for a job that requires a credit check

What Should be Included in a Letter of Explanation?

A letter of explanation should be clear, concise, and include relevant details about the issue in question. It should address the following:

• The date of the inquiry or variation
• The name of the company or individual who made the inquiry
• Details about the inquiry or variation and why it occurred
• An explanation of any extenuating circumstances that led to the inquiry or variation
• What steps you have taken or plan to take to resolve the issue

Get Your Letter of Explanation Template

Don't let the idea of writing a letter of explanation stress you out. BizzLibrary.com offers a professionally drafted letter of explanation template in DOCX format that you can customize to reflect your specific situation. Simply download the template, fill in the necessary information, and you'll have a document that will help you explain any discrepancies or variations on your credit report with ease.

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