Requesting explanation for derogatory from 2003!

[ArmyStrong]

I was under the impression that lenders only look at the last couple of years for derogs, but NFCU is asking for explanations from 3 late credit card payments in 2003 and 2 from 2004! No significant life events from that period that I can think of besides working 12-14 hour days! I guess in retrospect I should have tried to write GW letters for those, but I didn't think that far back would matter. Anyone ever have to go back that far and should I just give a general explanation?

[hawkeye33]

They're going to look at everything that still appears on your credit report, regardless of how far back it is. The last two years can provide a 'death blow' to the application, so if the report is clean for 2 years back, you're in pretty good shape. However, that doesn't mean they're not interested in explanations for stuff that happened longer ago.

I would provide a general explanation, whatever that might be, but make sure you also paint it in the light of why that won't happen now. Maybe your income is significantly higher. They basically want to have an idea of what happened, what you did to resolve it and why you won't repeat the mistake.

Good luck.

[ArmyStrong]

Thanks! That's what I did. Just waiting now. I only wish I knew they'd question hits from years ago. Woulda tried harder to get rid of 'em!

[ShanetheMortgageMan]

FYI it's good to list every single negative item that is on your credit report when doing the letter of explanation.  This way the underwriter won't ever start conjuring up reasons on their own on why something happened (which shouldn't ever happen, but underwriters are natural skeptics).