Address & Credit Provider: Effective Letter of Explanation

If you've ever applied for credit and had your application rejected, you know how frustrating it can be. Rejection can impact your credit score and make it difficult to secure credit in the future. Fortunately, the process doesn't have to end there. Writing a letter of explanation to your credit card provider can increase your chances of being approved. At BizzLibrary.com, we've got you covered with a free letter of explanation template that you can download and use today.

What is a Letter of Explanation?

A letter of explanation is a document that outlines the reasons behind a particular credit-related event, such as a late payment, a sudden decrease in income, or a high level of credit utilization. It helps provide context to your credit card provider while demonstrating your responsibility and intent to pay.

Why Write a Letter of Explanation?

Applying for credit is an ongoing process, and rejections will be a part of your journey. Writing a letter of explanation can improve your chances of being approved in the future by:

• Providing context to seemingly negative credit events - explaining the reasons behind your late payment or other issues.
• Demonstrating responsibility - by taking accountability for your actions, your creditor can see that you're a responsible borrower.
• Showcasing intent to pay - Writing a letter of explanation can prove that you're committed to paying your debt, which can reassure prospective lenders.

How to Write a Letter of Explanation?

Writing a letter of explanation to your credit card provider is easy when you follow our simple guidelines:

• Be concise and straightforward: There's no need to write a novel. Keep your explanation to the point and don't include any irrelevant information.
• Take accountability: Own up to your mistakes and provide context for the negative event. Show your creditor that you're willing to take responsibility for your actions.
• Offer a solution: If possible, offer a solution to rectify any negative events. For example, if you were late on a payment due to a medical emergency, offer to set up auto-payments to ensure timely future payments.
• Be professional: Treat your creditor with respect and communicate in a professional tone. Ensure that you have included your creditor's name and address on your letter.

Download Our Letter of Explanation Template

Writing a letter of explanation can be intimidating, but it doesn't have to be. Our free letter of explanation template in DOCX format can help make the process easy for you. Customize the template to fit your specific situation, and show your creditor that you're a responsible borrower.

Visit BizzLibrary.com now to download the letter of explanation template and access other useful business document templates. Take control of your financial future and overcome previous setbacks today.