How to Write a Credit Letter

Authors & Contributors

A credit letter is a response to customer's application for credit. The objective is to inform the customer of the status of that application. It also serves as a legal document notifying the recipient of the results of a credit check.

This is an extremely sensitive subject. Keep in mind that your response is a judgment regarding the applicant's personal credibility. Your reader deserves a direct and forthright decision and will appreciate a tactful and courteous tone.

The scope of a credit letter should include only those details that reflect the outcome of the credit checking process. The information presented will vary depending on the decision being made.

Whether your letter grants or denies credit, this is an opportunity to build goodwill. Keep in mind that a person with less than a desirable credit rating may still be a good cash customer and may in time become a better credit risk.

In the sample credit letters you will find examples of how to respond to different scenarios. In the first sample credit letter the writer acknowledges receipt of the application and explains the approval process. The second sample extends a limited credit line, and the third sample denies credit.