In the world of finance and economics, a letter of explanation is a formal letter to a financial institution that gives specific details regarding an incident or circumstance that is outside the normally accepted scope of business. In some circumstances, the letter of explanation is given directly to the major credit reporting bureaus to be given out with a person's credit report any time one is requested.Know More
A letter of explanation can be expected any time a prospective borrower is applying for a large sum of credit, such as a mortgage, and the lending institution recognizes the presence of defaulted or late payments on the purchaser's credit report. The purpose of the letter is to give specific details explaining the individual circumstances of the default and offers an opportunity to mitigate its impact on the applicant's chances for approval. A letter of explanation cannot be expected to salvage a history of bad credit but can offset the presence of a questionable section of history. The letter should use the standard business letter format, give specific details and be free of spelling and grammatical errors.
A letter of explanation is also the term used for a letter written by a job seeker to a prospective employer explaining the presence of a past criminal conviction.Learn More
A credit-explanation letter is written to a potential creditor or a credit bureau providing rationale for situations beyond a person's control that led to a late payment, according to the Credit InfoCenter. The letter should detail why the payment or payments were late.Full Answer >
To acquire a loan at 18 years of age, individuals should contact a lender, provide proof of income, complete a loan application, and submit a record of expenses to the financial institution. Proof of age may also be required by certain lenders, according to About.com.Full Answer >
Business agreement letters should include sections with specific details of which services are provided and not provided, the expected final product, fees and terms, according to About.com. Language should be simple and relatively informal.Full Answer >
Dinner invitation letters should be written with specific details, including the date, the event, names of senders, whether it is an adult-only reception and a request for guests to RSVP to a specific number. The letter's other specific contents should be tailored to the sender's party.Full Answer >