Tutorial for “Decline a Request For Credit”

Tips

A letter declining a request for credit, either from a business or a private citizen, should retain the good will of the reader. In most cases, your refusal should leave the door open to future applications from the same party.

Steps

1. Thank the applicant for applying for credit.

Sentences

  • Thank you for your interest in Doe's Luggage. We appreciate your application for a credit card.
  • We appreciate your interest in a loan from Doe Mortgage.
  • Thank you for your recent request for a line of credit with Doe's Wholesalers.
  • Thank you for taking the time to fill out a credit application during your recent visit to Doe's Department Store.
  • We greatly appreciate the order you sent us on June 30.
  • We appreciate your interest in doing business with Doe's.
  • Thank you for sending us your credit application. We appreciate your confidence in our services.
  • Thank you for your letter expressing interest in opening a charge account with our corporation.

Phrases

  • appreciate your interest in a loan
  • appreciate your request for a credit card
  • appreciate your interest in doing business with
  • appreciate your application
  • desire to establish credit with us
  • greatly appreciate the order you sent us on
  • greatly appreciate your interest in obtaining
  • happy to grant your request when
  • memo requesting credit for
  • new business venture sounds exciting and challenging
  • thank you for filling out a credit application
  • thank you for your interest in
  • thank you for your recent request for a line of credit with
  • thank you for your patience
  • thank you for your recent charge card application
  • underwent our standard credit investigation
  • want to do business with you
  • would like to grant the terms you request

2. Soften the refusal, if possible, by noting any positive items in the reader's application. State the reasons for the refusal, followed by a brief refusal.

Sentences

  • Although your part-time work record is excellent, you must be employed full time for at least six months before we can offer you a Doe credit card.
  • Your new business venture sounds exciting and challenging; however, company policy prevents us from extending credit until a company has been established for at least one year.
  • According to your financial statements and our credit information, you are not able to promptly meet all of your current obligations. Because of this, we must delay credit approval until you demonstrate your ability to pay your open accounts.
  • The financial information you provided us does not include your current income or your outstanding debts. Until you furnish that information to us, we cannot process your application.
  • You have been making regular payments on all your current accounts; however, because you are unemployed we cannot offer you credit at this time.
  • From the information we have received, you had difficulty paying your previous supplier in a timely manner. Therefore, our credit department suggests that for now we operate on a cash-only basis.
  • We have thoroughly examined the credit information you recently submitted and have concluded that, due to your current obligations, we can best serve you by offering a payment alternative other than credit.

Phrases

  • according to your financial statements and our credit information
  • after a careful review of your application
  • after reviewing all the information on your credit application
  • although your work record is excellent
  • are not in a position to extend the amount of credit you desire
  • authorities consulted have not given us sufficient
  • based on your application and the formulas we use
  • based on the information you supplied us
  • because your current liabilities exceed
  • been making regular payments on all your current accounts
  • before we can offer you a credit card
  • being unemployed makes it impossible for us to offer
  • by then you should have less difficulty
  • cannot see adding to your outstanding debts
  • cannot process your application
  • careful evaluation of your application indicates
  • committee decided to not grant the requested line of credit
  • company policy does not allow us to process orders on credit
  • company has been established for at least
  • credit criteria require that a customer's liabilities not exceed
  • current income
  • demonstrate your ability to pay your open accounts
  • does not conform to our company credit requirements
  • enclosed is a copy of their report
  • feel credit approval should be delayed
  • financial information you provided us does not include
  • for your own protection
  • have been endeavoring to establish your credit
  • it appears from the credit report we just received
  • lack of a permanent work record at this time
  • looked into your credit standing
  • merit approval under our criteria for extending credit
  • must be employed full-time for at least
  • my unfortunate duty to inform you of your ineligibility
  • not able to promptly meet all your current obligations
  • not able to extend credit to you
  • notice that you have been in this area only a few
  • our research has not provided sufficient
  • payment has consistently been getting further and further behind
  • perhaps a further review of your current situation will reveal
  • refuse credit to any applicant who has filed for bankruptcy
  • regret to inform you
  • regrettably we cannot approve your credit application
  • saying no to a customer is not easy
  • since receiving your application
  • sorry to report that we must decline your application
  • sorry to report that your references
  • sorry to inform you that we cannot extend credit at this time
  • unable to grant you the open credit you requested
  • unfortunately the information we received does not allow us
  • until you furnish this information to us
  • when you have established a bank account
  • your outstanding debts

3. Suggest, if appropriate, other possibilities for doing business.

Sentences

  • Until then, we hope you will take advantage of Doe's layaway plan.
  • While you are establishing your business, we would be happy to process orders accompanied by cash or check.
  • Have you considered finding a co-signer for your loan?
  • As soon as you send us the missing information, we will process your application.
  • With the enclosed thank you certificate, you can purchase any regularly priced merchandise at 10% off on March 30, using cash or check.
  • When we receive payment from you, we will ship your order immediately.
  • Again, we appreciate your interest in our firm and hope you will take us up on our offer of 5% off all your cash orders.

Phrases

  • as soon as you send us the missing information
  • as soon as you establish a permanent work record
  • based on the information we have on hand
  • certainly want you to look to us as your regular suppliers
  • considered finding a co-signer for your loan
  • glad to consider any additional information you can provide
  • happy to reconsider our disappointing decision
  • happy to review your account later
  • happy to reconsider your application
  • happy to process orders accompanied by cash or check
  • have no choice
  • hope you will understand our position
  • hope you will take advantage of our layaway plan
  • if you feel the report is in error
  • if you wish to reapply for a line with a lower ceiling
  • if you would like additional information
  • if you can supply us with additional references
  • look forward to establishing a long-term relationship with you
  • profits accruing from our products will more than compensate
  • remember that cash purchases have no monthly interest charge
  • sure we can set up a program of gradually increasing credit
  • want very much for you to join our family of customers
  • welcome any cash orders
  • when we receive payment from you
  • when your financial situation improves
  • when your income/debt ratio changes
  • will be very happy to reconsider
  • will find both our service and products outstanding
  • will be happy to consider your application again
  • will be as flexible and cooperative as possible
  • will do all we can to serve you
  • wish you every success in your new business
  • work out a mutually satisfying arrangement

4. Offer encouragement or a suggestion to reapply later.

Sentences

  • We wish you every success in your new business and look forward to establishing a line of credit for you in the near future.
  • I am available at your convenience to discuss a smaller line of credit that we can gradually increase as your circumstances improve.
  • We would be happy to consider your application again when your financial situation improves.
  • We hope you will apply again later. As always, we thank you for shopping at Doe's.
  • Let's plan on reviewing your request for credit again in six months. We hope the future will bring a mutually profitable relationship.
  • We hope you will understand our position. If we can assist you further, please let us know.
  • Thank you for your understanding. Contact us again in another year, and we will discuss opening a charge account.
  • Once you have concluded your job search and have settled into the community, we will be pleased to review your application. We wish you all the best.
  • We appreciate your business and hope you will reapply next year.

Phrases

  • am sorry we can't do more for you at this time
  • available at your convenience to discuss a smaller line of credit
  • can take advantage of our layaway service
  • can gradually increase as your circumstances improve
  • hope to hear from you again
  • hope you will apply again later
  • hope to extend credit terms then
  • hope to open a credit account for you when you apply again
  • if we have left any questions unanswered
  • if you think your status will improve
  • if I can further assist you
  • if you have any questions
  • let me hear from you soon
  • look forward to continuing our business association
  • look forward to a mutually profitable relationship
  • look forward to establishing a line of credit for you
  • looking forward to working with you
  • plan on reviewing your request for credit again in
  • please don't hesitate to get back in touch with us
  • please come in and talk to me at your convenience
  • please contact us again in
  • please allow us to serve you in any way possible
  • regret we could not be more helpful at this time
  • reopen your application at some future time if you so desire
  • sincerely want you as a customer
  • thank you for your interest
  • thank you for shopping at
  • when your financial picture changes
  • will be able to reconsider granting you credit
  • will make every effort to serve you well

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