Sample Letter Explaining Bad Credit to Employer

In this article, I’ll share my insights and provide a comprehensive guide and customizable template on how to craft a compelling and respectful letter explaining bad credit to an employer.

Key Takeaways:

  • Understanding the Purpose: Learn the reasons why employers might request a credit check.
  • Structure of the Letter: A step-by-step guide to writing an effective letter.
  • Personalization is Key: Tips for making your letter authentic and sincere.
  • Privacy Matters: How to discuss your situation without over-sharing.
  • Template for Success: A customizable template to get you started.
  • Final Touches: Importance of proofreading and professional presentation.

Why Do Employers Check Credit?

1. Responsibility and Reliability: Employers view credit history as a reflection of an individual’s responsibility in handling finances.

2. Position Relevance: For positions that involve financial management or access to sensitive information, a good credit history might be crucial.

3. Legal Compliance: Certain industries require credit checks as part of the background check process.

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Step-by-Step Guide to Writing Your Letter

1. Start with a Professional Format

  • Date: Include the current date.
  • Employer’s Contact Information: Address the letter to the specific person or department handling your application.

2. Introduction: State the Purpose

  • Opening Line: Clearly state why you are writing the letter.

3. Explain Your Situation

  • Be Honest and Direct: Briefly explain the circumstances that led to your bad credit.
  • Real Life Example: “Due to unexpected medical expenses following an accident, I was unable to meet some of my financial obligations.”

4. Emphasize Positive Steps Taken

  • Actions for Improvement: Discuss any measures you’ve taken to improve your credit.
  • Future Plans: Mention your plans for further financial stability.

5. Assure Professional Competence

  • Separate Personal and Professional: Reassure the employer that your personal credit does not reflect your professional abilities.

6. Conclude Respectfully

  • Express Gratitude: Thank them for considering your application and understanding your situation.
  • Offer Additional Information: Indicate your willingness to discuss further if needed.

7. Professional Closing

  • Sign-off: Use a formal closing like “Sincerely” followed by your full name.

Template for Your Letter

[Your Name]
[Your Address]
[City, State, Zip]
[Email Address]
[Phone Number]

[Employer’s Name]
[Company Name]
[Company Address]
[City, State, Zip]

Dear [Employer’s Name],

I am writing to you regarding the recent request for a credit check as part of my application for [Position Name] at [Company Name].

I want to be upfront and transparent about my current credit situation, which I believe does not reflect my professional capabilities or my commitment to my responsibilities.

Due to [briefly describe the reason, e.g., “unexpected medical expenses from a family emergency”], I faced financial difficulties that adversely affected my credit score.

I want to assure you that this is not indicative of my overall financial behavior or my professional conduct.

Since then, I have taken significant steps towards improving my financial stability. These include [list steps taken, e.g., “negotiating a payment plan with creditors,” “attending financial management workshops,” etc.].

I am dedicated to ensuring such a situation does not arise again and am actively working towards enhancing my credit standing.

I believe that my personal financial situation does not impact my professional abilities. In my previous roles, I have [mention any relevant professional achievements or responsibilities that demonstrate your reliability and competence].

I am very enthusiastic about the opportunity to work with [Company Name] and am confident in my ability to contribute positively to your team. I am happy to provide any further information or clarification should you require it.

Thank you for considering my application and for your understanding in this matter. I look forward to the possibility of working with you.

[Your Name]

Finalizing Your Letter

  • Proofreading is Essential: Always proofread your letter for any spelling or grammatical errors.
  • Keep it Professional: Use a professional tone and format throughout the letter.
  • Privacy Balance: Share enough to explain your situation but avoid overly personal details.


Writing a letter to explain bad credit can be daunting, but it’s an opportunity to show your honesty, responsibility, and the steps you’ve taken to improve your situation.

Remember, this letter is a supplement to your job application, so keep it professional, succinct, and focused on how you’ve overcome your financial challenges.

Comments or Questions? Feel free to leave a comment below or contact me for more advice on navigating the professional world with a complex credit history. Your feedback and experiences are valuable to our community.

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Frequently Asked Questions (FAQs)

A middle-aged Hispanic woman in business casual attire

Q: How Should I Start My Letter Explaining Bad Credit to an Employer?

Answer: In my experience, the best way to start is with a straightforward and respectful tone. I always begin by addressing the employer directly, stating the purpose of my letter upfront. 

For instance, “I am writing to address the matter of my credit history as part of my job application process.” This approach shows transparency and professionalism right from the start.

Q: How Much Detail Should I Include About My Bad Credit?

Answer: Based on my experience, it’s important to strike a balance. Provide enough detail to give a clear understanding of your situation, but avoid oversharing personal information. 

I usually briefly mention the main cause of my credit issues, such as “unexpected medical expenses” or “a period of unemployment,” and then quickly shift focus to the steps I’ve taken to resolve these issues.

Q: Is It Necessary to Explain How I’m Improving My Credit?

Answer: Absolutely. In my letters, I always emphasize the actions I’ve taken to improve my financial situation. This can be something like, “I have set up a debt repayment plan and have been consistently meeting these payments for the past year.” It shows the employer that you’re proactive and responsible, turning a negative into a positive.

Q: How Can I Reassure My Potential Employer About My Professionalism?

Answer: It’s crucial to make a clear distinction between your personal finances and your professional capabilities. In my letters, I reassure the employer by stating something like, “I wish to assure you that my personal credit history does not reflect my professional work ethic or my ability to fulfill my job responsibilities.” This helps to alleviate any concerns they might have about your reliability as an employee.

Q: Should I Offer to Discuss My Credit Situation Further in the Letter?

Answer: Yes, offering to discuss further is a good practice. In my own letters, I often include a line like, “I am open to discussing this matter further if you require additional information or clarification.” This shows that you are open, honest, and willing to address any concerns they might have.

Q: How Do I End the Letter on a Positive Note?

Answer: Ending positively is key. I usually conclude by expressing my enthusiasm for the position and thanking the employer for their understanding. 

For example, “I am very excited about the opportunity to contribute to [Company Name] and thank you for considering my application.” It leaves a lasting impression of professionalism and positivity.

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