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 about Personal Loans
According to Investopedia, a signature loan is a personal loan that does not require collateral to secure, typically issued by a bank or other financial institution. The loan is issued based on the customer's signature on the loan papers and his word that the loan is to be repaid. Because the loan is unsecured, it is also sometimes called a character loan or good faith loan.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 >
To write a promissory note for a personal loan, start with the borrower's details, following up with the lender's name and the terms of the loan, according to SampleNote.org. The signing of this note by the lender and the borrower completes the process and legalizes the document.Full Answer >
All subjects related to business, such as accounting, finance and management, are among some of the most popular fields of study throughout the world because of the high demand of business graduates. A business degree touches almost every aspect of the modern society, and careers associated with business are diverse and highly paid.Full Answer >