Credit Infocenter

Letter to Explain Late Payments

By: Staff

Use this sample letter to explain late payments when applying for credit.

Over the past few months, you have been working hard to repair your credit because you want to buy a home and you have gotten your credit report in the best shape possible. Let's say you are getting ready to discuss final interest rate but you still found a few credit dings. Even though you qualify for the loan, the lender may ask you to explain any late payments on your report. This letter will not help a desperate credit situation, but may make a difference in a marginal one. Explaining a couple late payments could mean the difference between a good interest rate and a fair one.

The basic premise of this explanation letter is to address:

  • The situation you were in which caused you to pay late was beyond your control.
  • You have vowed to never let it happen again.
  • Here are the things you have done to make sure it doesn't happen.

Of course, you do not want to just copy this letter. You will need to change the wording of this letter to fit your specific situation. This example letter, and more, are part of our sample letters we have created to help you handle a variety of credit situations. You can also visit our bookstore where you can purchase eBooks on credit repair, debt settlement, and 95 sample letters all available for instant download.

To Whom it May Concern:

I am writing this letter to explain my late payments on my (mortgage) to (mortgage company) and to (other creditors) in (insert dates).

I am very distressed that this has ever happened to me, but I was <laid off>, <seriously injured>, <going through a death in family> . The circumstances drained my carefully put aside savings and I was forced to miss a payment because of it. My financial advisor told me not to tap into my 401K, and I was able to recover from this crisis and begin making on-time payments.

I have always prided myself in paying on time, and I have taken steps to put away more money in my savings account to guard against other unforeseen occurrences like this.


Your Signature