What does underwriting typically look for or expect when doing written explanations for derogatory items on a credit report? Are they looking for a reason or something to indicate you've improved/learned from the experience?
Last night was filing out my explanation and had 3 cards with negative items, 2 which were clearer reasons and 1 was kind of weak:
1) 0% card, I paid the balance before the 12th statement due date, but not before the account anniversary so they charged me the interest. I stupidly didn't pay the bill while being slow to refute it, ended up with a 30 day late payment.
2) One card that was a charge off in 2008, where hit a rough patch and went through savings, fell behind on that one. Ended up liquidating another account to pay it off, started better budgeting to ensure we were within means.
3) 4 late payments over time, where there really was no good reason, just bad tracking of when/whether had been paid. Got better and went 2 years without a late payment, but let one though early last year.
As I was writing though, I wasn't sure what was expected. A story with a resolution? A bad habit that has been fixed? Its like want all of them to have a better ending so they don't think your a slouch and not going to pay your mortgage on time.
