Credit Card Center Advertiser Disclosure

Posts: 9
Registered: ‎02-16-2012
0 Kudos

Credit Inquiry letter of explanation

My husband and I are in the process of getting a mortgage for our first home.

To the best of my knowledge, we are currently "conditionally approved."

However... we are running into a bureaucratic nightmare. We have now written 7 letters for the purpose of "explaining recent credit inquiries." Apparently, the wording we have used is unacceptable, but I can't get a straight answer out of anyone for how to fix it. I called the lender and was told that it is illegal for me to have any contact with them without our mortgage broker on the phone. I asked the mortgage broker how we need to word the letter and he says it is illegal for him to tell me.


Essentially, we shopped around to compare interest rates and fees. We did not accept money as a result of any of the inquiries so far. The latest inquiries are all from the mortgage broker we selected.

Can anyone tell me how to word a letter that explains that in a way that will be acceptable to the lender?

03/15/2012 EQ: 784 (myFICO Score Watch alert)
03/01/2012 EQ:720 TU:797 EX:788 (lender pull)
02/29/2012 TU: 814 (myFICO quarterly report)
02/28/2012 EQ:720 (myFICO Score Watch alert)
02/27/2012 EQ:720 TU:746 EX:788 (lender pull)
02/15/2012 EQ:694 TU:746 (lender pull)
02/14/2012 EQ:694 (myFICO)
Senior Contributor
Posts: 3,070
Registered: ‎11-02-2009
0 Kudos

Re: Credit Inquiry letter of explanation

Here is what I used:


I am writing to explain the following inquiries listed on my credit report:


[List of inquiries listing party requesting report and date of inquiry]


Each of these inquiries was for the purpose of shopping for a competitive rate for a mortgage application.  No new personal debt was incurred, or credit granted from these inquiries, which is not already listed on my credit report.



You can probably get by with just the last sentence.

Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720

Take the FICO Fitness Challenge
Established Contributor
Posts: 554
Registered: ‎03-13-2011
0 Kudos

Re: Credit Inquiry letter of explanation

is a letter of explanation typical? i had some in december because i had to get a new car (totaled mine) and then there is one on some report (tu i think?) for opening a bill me later account with paypal..... wonder if the bill me later would put towards my DTI since it does have a balance?

WM TransUnion- 650 (6/2014) Credit Sesame Experian- 691 (6/2014) Credit Karma TransUnion- 665 (6/2014)
Amex Zync/UNICORN- NPSL/Capital One Venture One Pro -$7,000/NFCU Cash Rewards- $7,500/NFCU NavChek- $5,000/SouthWest Airlines- $5,000/Capital One Quicksilver Platinum- $3,000/Wal-Mart Discover- $6,000/Bill Me Later- $2,200/JCP- $4,700/Discover IT- $500/Care Credit -$2,300/Old Navy Visa- $2,000/New York & Company - $1,000/Capital One -$800
GOALS: No new inqs until 10/30/14. Pay off debt consolidation loan in less than 1 year. Snowball debt payments.
Last HP: 3/5/14
Senior Contributor
Posts: 3,070
Registered: ‎11-02-2009
0 Kudos

Re: Credit Inquiry letter of explanation

It is typical, but I don't know how far back they go.  I had to explain my mortgage inquiries, but I had an inquiry from late summer last year that they didn't ask me about. 

Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720

Take the FICO Fitness Challenge
Moderator Emeritus
Posts: 7,225
Registered: ‎09-16-2011
0 Kudos

Re: Credit Inquiry letter of explanation

Mine is like a table... my broker provided it to me....  The exact wording is:


The reason for my recent inquiries is as follows:


Date                     Company                        Reason

9/21/11                CSC                                I was shopping for mortgage pre-approval. I did not open an account and cancelled all applications.



And it had a place for borrower to sign.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!

Take the myFICO Fitness Challenge
New Contributor
Posts: 61
Registered: ‎02-10-2012
0 Kudos

Re: Credit Inquiry letter of explanation

[ Edited ]

Your LO/lender should provide you that form. We had to do the same thing as well. It's like a waiver or an explanation - we filled the blanks and just wrote  the 'shopping for mortgage rates'.  Then we signed the paper. Smiley Happy

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.