Sample Letter of Explanation for January Account Payment and Credit

Have you had late payments or delinquencies on your credit accounts and need to explain them in writing? BizzLibrary.com provides a free downloadable letter of explanation template. This template will help you clearly communicate the circumstances that led to the payment or credit account issue. Our professionally designed document is downloadable in DOCX format and easy to use.

What is a Letter of Explanation?

A Letter of Explanation is a written statement that provides an explanation for any issues related to a payment or credit account. These letters are often requested by lenders, banks, or creditors as part of the loan or credit approval process. They help to clarify any potential concerns related to credit history or projections for the future.

When Do You Need to Write a Letter of Explanation?

You may be asked to provide a Letter of Explanation when there are issues with your credit worthiness. Here are some examples of circumstances that may require you to write a Letter of Explanation:

1. Late payments: Late payments on credit cards, mortgages, or loans can be a red flag for lenders. A Letter of Explanation can help to explain the reasons for the late payment and convey your commitment to making timely payments going forward.
2. Credit delinquencies: A poor credit history with multiple delinquent accounts can be a cause for concern. However, writing a Letter of Explanation can help to clear up any misunderstandings and show that you are taking steps to build a better credit record.
3. Change in employment status: Any significant changes in employment status, such as a job loss or change in income source, can lead to financial instability. A Letter of Explanation can communicate the reasons for the change and offer a plan for moving forward.
4. Identity theft: If you have been a victim of identity theft or fraud, a Letter of Explanation can help to clear up any issues related to fraudulent accounts or incorrect credit records.

Download Your Free Letter of Explanation Template

Writing a Letter of Explanation can be a stressful and complicated process, but our free downloadable template can help! Our pre-formatted document includes all necessary information and formatting for you to easily fill in the required details and create a professional letter. Remember that it is important to be truthful and concise while including only necessary information. Be sure to proofread your letter before submitting it to any lenders or creditors.

Visit BizzLibrary.com today to access a wide range of useful document templates, including legal contracts, sales agreements, and more. Download our free Letter of Explanation template in DOCX format and take control of your financial situation.