Credit Letter

Posted in Sample Letters

A credit letter may be written under several circumstances. You may need to write a customer to discontinue credit or to inform them they have been turned down. It is also advised that you write a credit letter in the event that an applicant has been accepted. If you are uncertain about how to do this, the information and sample below will help make the task easier.

1. Always use a pleasant, professional tone. Whether the recipient of the letter is being accepted, denied or discontinued, use a professional and pleasant tone.

2. Explain your decision. If the recipient is being refused or discontinued from their current credit, provide a clear explanation. Be courteous; this person may be approved for credit at a later date. Clearly indicate all terms and interest rates if the letter is for acceptance purposes.

3. Be professional. A credit letter should be written on company letterhead, using simple fonts that are easy to read. Leave plenty of white space around borders, so that your letter gives a professional impression.

4. Proofread your letter. Always read your letter several times to check for correct information, spelling and grammar.

If you have never written a credit letter, the sample below will help make this task easier and less intimidating.

Sample credit letter

Company or business letterhead

Your name


City, State, Zip


Recipient’s name


City, State, Zip

Dear (Applicant’s or Clients name)

In your introductory paragraph, briefly summarize your reason for writing. If the letter is in reply to a credit application, mention this fact. Explain right away that credit is being denied, canceled or accepted.

In the body of your credit letter, further explain the reason for cancellation or denial of credit to the recipient. If you are unable to extend credit to the applicant, list out the reasons such as low income, longevity of employment, previous credit history, etc. If you are canceling credit to a current customer, clearly explain the reasons for this action.

In the event that you are granting credit, express your pleasure in doing so, along with any other pertinent information. Include the rate of interest, the term of the loan and how much will be applied toward principal and interest.

In closing, thank the recipient for their time, and express your regrets concerning the applicants denial, having to cancel current credit, etc. In the case of granting credit to a new customer, express your pleasure at having them as a customer, and that you look forward to future business.


Your name

As you can see, writing a credit letter is fairly basic and straightforward. Hopefully the tips and outline above will help you complete the task efficiently.

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