Though it should be stated in the first paragraph what the credit trouble was in general. The second paragraph is where the specific details can be listed. Don’t be afraid to say the whole ugly truth. Lenders don’t want someone to tell them what they want to hear, they want the truth. Again, referencing and attaching documentation further proves the case. Anyone can get sick, or have a spell where they are down on their luck. It is what a person does after these times that is important to potential lenders. Here is a sample letter of explanation for credit problems that can be used to get a loan.
Sample Letter of Explanation for Credit Problems
7856 Sleigh Bell Way
Sunbury, Ohio 43895
XYZ Lending Company
89 Safire Drive
Worthington, Ohio 43081
Attn: Jacob Peters
Dear Mr. Peters,
This letter is written in response to the request for verification of the period bad credit by your lending institution. The loan in question is for a home on Raton Rd. in Reynoldsburg. My family is quite large, we have children, and we have been renting. Our current accommodations are too small and my children long for a yard to play in. This house we are wanting to purchase would be the perfect starter home for us. I understand there is some question about previous credit problems. I am sure we can address those issues and put the lender’s mind at ease.
In [YEAR], my husband was stricken with some serious illness. He began to have seizures and at times didn’t know who he was. He was in the hospital more than he was out. For two years, I had to carry the financial burden of the family. He was life lighted two times and it is a miracle that he is with us today. He has made a full recovery and is doing well. This temporary setback was the cause of great financial turmoil in our lives. Thankfully, he has been back to work for 3 years and we have made a full financial recovery.
If your lending institution is kind enough to grant this loan, we will ensure that timely payments are made. If you have any questions, please feel free to contact me at 555-896-5874.
By Andre Bradley