Credit letter of explanation


  1. Begin by stating the purpose of writing this letter.
  2. Explain your side of the story for the late payment or any other reason.
  3. Mention that you have made provisions to avoid any such circumstances in the future.


[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-

Dear [Recipients Name],

I am writing this letter to explain a defaulted payment on the mortgage of my house to the Bank of America.

I always pay my dues on time. But this time, I was laid off and used my savings cautiously to support my family. It was the only finances I had to continue the education of my three kids.

But I soon recovered from this crisis and made all my payments. I have now taken measures to ensure this never happens again.


[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -