How do I explain a late payment?

I am trying to become pre-approved for a home loan. I need to write a letter of explanation. The payment was a week late for a credit card. At the time I had paperless billing. The bill slipped my mind and I don't have a solid explanation. I have always been on time except for that month. Please Help !!!

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  • Zeltar
    Lv 6
    7 years ago
    Favourite answer

    For one bill that is a week late, seriously they really don't care what you write. They will approve the loan. It's more a matter of putting something in there file.

    However, because you must answer... I would tackle the situation the same way we do at work. That is, if a human error causes an issue, we do an "AAR" which stands for After Action Review. An After Action Review consists of a review of the problem and actions taken to mitigate that problem from happening again.

    In your situation, your problem was that your bill tracking system was highly dependent on your memory. As habits, including documentation, are more reliable than happenstance memory and situational "I think maybe I"ll pay my bills today", your action plan probably consists of new household processes to assure bills are not missed. It could be something like "As a result of my mistake, I changed my methods towards paying bills. I now have a process in place where every Wednesday evening I process all bills in queue, and I track expected billing dates so that if one doesn't show up in the mail (or doesn't land on my desk) I call the company or log-on to the website to retrieve the information".... you might also have a system such as Quicken or Mint or a MS Excel spreadsheet where you track and audit all your bill paying activities.

  • 4 years ago

    Letter Explaining Late Payments

  • 7 years ago

    Is this late payment even showing on your credit report? Normally a credit card does not report a late payment till the 30 day mark. If you were only 7 days late, you would get hit with a late fee but not a ding on your credit.

    If it does show on your credit, you letter of explanation isn't going to make any difference. Either you have enough credit history that one late payment won't matter or your credit is limited and this one late payment stands out like a sore thumb. If your credit is so limited, you may have problems getting approved for a mortgage anyway.

    Keep your letter simple. Just state that you had paperless billing and missed it.

  • BBG
    Lv 7
    7 years ago

    Seriously, a letter of explanation for one payment seven days late in your entire credit history for a PRE-QUAL sounds odd. I almost don't believe you...lol.

    Since you have such a great payment history (other than that one payment late by seven days...lol) I'd just be honest. I'm human, I made a mistake and paid seven days late. Clearly from my credit history you can see that I consistently use credit wisely and at no time have I ever intentionally not made timely payment of any debt."

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  • Anonymous
    6 years ago

    Pretty sure that you must find many financial solution at: loandirectory.info-

    RE How do I explain a late payment?

    I am trying to become pre-approved for a home loan. I need to write a letter of explanation. The payment was a week late for a credit card. At the time I had paperless billing. The bill slipped my mind and I don't have a solid explanation. I have always been on time except for that month. Please Help !!!

  • DON W
    Lv 7
    7 years ago

    To Whom It May Concern:

    I paid my VISA bill from November 2013 seven days late. The reason was simple: in the press of other activities I overlooked the due date.

    This is the only time I have been late with a payment.

    I have since established a monthly planning calendar that helps to ensure that I pay all bills on time.

    Sincerely,

    Benjamin E. Smith

  • Anonymous
    5 years ago

    EVERYBODY was hit in the last year with economic squeezes. Just tell them you lost your job, but the new place will have 2 incomes between 3 people and that will not be a problem doing rent on it.

  • Anonymous
    7 years ago

    If the mortgage broker wants an explanation, just tell them you had medical expenses not covered by your health insurance.

    Source(s): Retired bill collector 35 years
  • Anonymous
    7 years ago

    tell them you were broke

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