If you’ve had credit problems in the past, you may be worried about how they will affect your ability to get a loan. A letter of explanation can help to clear up any misunderstandings and show potential lenders that you are now taking steps to improve your credit. This sample letter can be used as a guide when creating your own. The letter provides an overview of the credit problems that have occurred, explains what has been done to address them, and offers assurances that they will not happen again. It also includes contact information for reference purposes.
But don’t worry; we have an excellent Sample Template that you can use to create your Letter of Explanation for Credit Problems.
[Your Name]
[Current Address of Your Apartment, unit ###]
[City, State, Zip Code]
[Date]
[Landlord Or Apartment Company’s Name]
[Address as Printed on Your Lease]
[City, State, Zip Code]
Re: Letter detailing my credit history
Dear [Name of landlord or manager],
As you can see from my credit report, I made late payments on my student loans and credit cards. I experienced financial hardship during this time, as I was laid off from my job. I have since regained employment and have made timely payments on all my accounts. I have also been working with a credit counseling service to help me get back on track.
I would like to assure you that I am now in a stable financial situation and am able to make all future rent payments on time. I hope that you will consider my current circumstances when reviewing my application.
Thank you for your time and consideration.
Sincerely,
[Your Name]