If the letter to explain bad credit is for use in securing a home mortgage, Trulia recommends ordering a copy of the credit report and detailing the reason behind each negative remark listed on the report. However, if the letter is to ask a bank to consider a short sale of a property, the purpose is completely different, according to About.com.Know More
The purpose of the letter when applying for a mortgage is to show the lender that while the potential borrower has experienced credit problems in the past, he has tried to remedy those problems as quickly as possible, according to Trulia. Enclosing documentation, such as divorce decrees, court orders for child support, letters from employers or doctors, or records from the state unemployment office, helps to substantiate the claims.
When writing a letter to explain bad credit when asking a bank to approve a short sale of a home, the purpose is to explain the cause for the problem and that the situation is not likely to improve, according to About.com. This type of letter should show no hope for things getting better. If the lender reads the letter and sees disposable income or a chance for recovery, it is likely to refuse the offer.Learn more about Credit & Lending
A judgment remains on a credit report for seven years from the date of filing. A judgment is considered a public record and can adversely affect a credit score. Some public records, such as divorces, do not affect a FICO, or credit score.Full Answer >
A good sample credit report includes personal information, past and present credit status, information acquired from the federal district bankruptcy records, a current credit score and the names of individuals or organizations who have requested a copy of a person's credit report. According to the Federal Trade Commission, consumers are eligible to receive free copies of their credit reports each year to check for discrepancies and get an idea of their current credit status. These reports can be ordered through the official annualcreditreport.com site.Full Answer >
Dispute information on your credit report by documenting the error, writing a dispute letter and contacting the credit reporting company and the information provider. By law, the reporting company and information provider are responsible for investigating your claim promptly and correcting genuine mistakes.Full Answer >
To unfreeze a credit report, visit the website of the credit reporting agency that you used to freeze your credit report, research the requirements for unfreezing your report, and complete the designated online form. You can also unfreeze your report by certified mail or phone.Full Answer >