Credit Letters

Denied credit or need to request changes?

Whether you are the creditor or the applicant, a well-written credit letter can save money.

How to write a credit letter:

• Keep a courteous tone, no matter the circumstances. If you must deny a person credit, discontinue credit, or begin the collection process, maintain a professional tone as you explain your reasons for taking this action. Remember, you'll probably want to keep this customer's business, even if you must ask for cash payments.

• If you must deny a request for credit, leave the door open to future applications from the same party.

• If payment is more than a month late, encourage the customer to contact you to discuss the lapse in payment.

• If a payment is more than 60 days overdue and the customer has shown no move toward making the payment or discussing why he or she has not made payment, let him or her know exactly what the penalty will be unless he or she responds immediately with the payment. Don't make an empty threat, however. You must be prepared to follow through.

• Be clear and include enough information to clearly convey your request or offer to your client or potential customer.

• Tailor your letter to your audience.

• Be brief; credit letters should be straightforward and businesslike.

• Be confident and persuasive. Be assertive but not overbearing.

• Assure your reader that any information he or she gives you will remain confidential.

Credit letters allow you to:

• Approve/deny a loan or application for a credit card or increased line of credit.

• Invite a customer or potential client to apply for a loan or line of credit.

• Promise a delayed payment to a creditor.

• Acknowledge payment toward a credit balance or for an overdue balance.

• Explain your reasons for withdrawing the customer's credit option.

• Announce intentions to begin the collection process if a client does not make payment.

• Request that a customer make his or her loan or credit card payment.

• Offer alternative payment plans if a client is unable to meet the current payment obligation.

• Write a letter to a credit bureau stating that they have included inaccurate information on your credit report and ask that this information be corrected or removed, and request that corrected statements be sent to everyone who has been misinformed.

• Work to maintain goodwill and trust.

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Credit Letter Topics

Get a variety of credit letters for each of these topics:

Cancel, Suspend, or Restrict a Credit Account

• Announce punitive measures against a client's account

• Cancel or withdraw a customer's credit account

• Warn a customer about credit suspension or penalization

Miscellaneous

• Confirm a telephone request to transfer money, cancel and replace a stolen credit card, or stop payment on a check

• Write a credit reference

Open a Credit Account

• Extend an invitation to open an account

• Offer the use of a charge account

Request a Loan or Credit

• Approve a loan

• Ask an applicant for credit to submit more information

• Decline a request for credit

• Grant approval for credit

• Investigate an applicant's credit reference

• Request an explanation for a denial of credit

• Request an increased credit line

• Request or apply for a credit account

• Welcome a new account or an account reactivation

Request or Make Payment

• Acknowledge payment of an overdue balance

• Inform a customer of an incorrect payment amount and ask for the balance

• Inform a customer of an overpayment

• Inform a customer that the check you received was not signed or the payment was not in the envelope

• Notify a creditor that you have stopped payment on a check

• Notify a debtor of a returned check

• Offer a discount for early payment on products or services

• Promise a delayed payment to a creditor

• Remind an organization member to pay a fee, duty, or pledge

• Request payment of a personal loan

• Send a late payment after a mutual agreement to do so

• Suggest an alternate plan or schedule for payments

• Transmit a payment

Collection Letters

• Collection letter #1: Remind a customer that payment is past due

• Collection letter #2: Remind a customer that payment is past due)

• Collection letter #3: Appeal to a customer's personal interests to pay an overdue bill)

• Collection letter #4: Offer assistance to a customer having difficulty paying an overdue bill

• Collection letter #5: Demand payment on a delinquent account

• Collection letter #6: Announce your intention to take aggressive action against a customer for failing to make payment

• Write a collection letter