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cfourpawsinc

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Will any lenders consider extenuating circumstances fit the reason of a bad credit score
My child was a victim of a crime which led to my financial difficulties and subsequently bad credit scores

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My mom always said "this too shall pass"

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Typically only mortgage lenders will ask for letters of explanation because of the loan amounts, they want more details about your payment history.... but even then, they carry very little weight your actual lending decision. 

Your credit report isn’t meant to tell people of your 'ability to pay' a debt as agreed. Rather it is meant to tell lenders if you do 'make your payments as on time as agreed'.  Basically it tells the lenders how likely you are to miss (or default) on a payment should they lend money to you. 

So while your child being a victim of a crime that lead to your financial difficulties that eventually ended up with you having to miss a few payments is a horrible situation, it’s also irrelevant to your credit score.  Your credit score only takes into account that you missed paying as agreed, regardless of your reasons.  Sounds harsh I know.

However, if you are a responsible person, as I assume you are, you will be able to make the right choices of getting your credit back on track.  By starting your credit history over again and make on time payments, your missed payments will eventually fade out of your score.  And you will again be able to save a nest egg of credit for the next unexpected life experience in the future.

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