Credit Inquiry Letter

What is a credit inquiry?

If you see your credit report carefully, you will find credit inquiries in that report in any section. The purpose of these inquiries is to make the recipient explain certain things that have been seen in the credit report. Sometimes, the creditor wants to see the credit report and therefore, he asks you to provide the recent credit report.

What is a credit inquiry letter?

If you are a creditor, you can write a credit inquiry letter to the borrower asking him to provide you with the credit report. Similarly, if you are a borrower and you need to give an explanation of all the inquiries made by the creditor, you will be in the need to write the credit inquiry letter.

Importance of writing the credit inquiry letter:

You are asked to write this letter to give the explanation because when you write the explanation, you provide grounds to the creditor to accept or reject your request. Additionally, the creditor often wants to calculate the credit score of the lender. If the credit score is in a certain range, the loan application of the lender gets approved. Hence, the lender should try to include the information in this letter that can increase his credit score.  

What does a credit inquiry letter include?

No matter what kind of letter in a professional setting, it is always needed by you to take care of every aspect of the letter. The most important aspect of the investigation letter is the content is exhibited. If this content is accurate and appropriate, you will be able to write the investigation letter.

It includes the information including:

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  1. Name and details of the creditor.
  2. A unique loan number that is issued to every borrower.
  3. Explanation of the inquiry.
  4. A claim by the borrower that the information provided by him in this letter is accurate and based on facts. The borrower also promises that whenever any change occurs in the information he has provided, he will notify the creditor about it.

Things to remember while writing the credit investigation letter:

When you are writing this letter, you must remember the following points:

  1. Before you write the explanation of the inquiries, you must remember the types of inquiries. There are two types of inquiries: hard inquiries and soft inquiries. Hard inquiries are the kind of questions that are raised with the permission of the borrower. The inquiries are required to be answered so that the creditor can decide whether to accept the loan application or not. Another type of inquiry is a soft inquiry. You will confront these types of inquiries whenever you conduct a transaction. These questions make you tell whether there are any other offers of loan approval or not.
  2. When you write the credit questioning letter, you should try to make sure that you only answer hard inquiries. These questions are more important and they should be answered in the credit inquiry letter.
  3. Make sure that the information you provide in this letter is true and accurate. You need to get the loan and you want it to be approved, you cannot tell a lie in the letter as the creditor will not approve the loan application without conducting a thorough investigation.

Writing an explanation letter to answer the inquiries should be considered and paid a lot of attention so that it cannot badly impact your credit score. We are providing here the credit inquiry letter sample that you can use as a reference to draft your letter.

Sample Letter

Name of the creditor:

Loan number:

Date of conducting the inquiry:

Inquiry explanation: [TEXT…]

The explanation is given above about the credit report addresses the inquiries that were associated with the loan I applied for. I certify that whatever information I have provided in this letter is correct and accurate. I understand that if there is any change brought to the information that has been provided above, I will readily inform the loan originator about it so that he also updates the record.

Signatures of the borrower:

____________________________

Date of signing

____________________________


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