How to Write a Credit Letter

Authors & Contributors

The objective of a credit letter is to inform the reader of an approval or denial of a request for credit. Notification of an approval is always easy. Be warm and welcoming in your tone and style. Refusing an application is a more delicate matter. You should avoid being apologetic, however; remember, credibility is the applicant's personal responsibility, not yours.

To help your reader comprehend your decision, be brief and to the point. If you are not extending credit, use your first paragraphs to explain the factors or criteria used to judge the application and explain which of those factors did not meet an acceptable standard.

In the first paragraph of sample credit letter #1, the writer thanks the applicant for both her order and her interest in establishing credit. He then explains the approval process and some temporary account restrictions. Sample #2 grants a specific amount of credit and sample #3 denies credit.