Request an Explanation For a Denial of Credit • Example Letters, Guides and Samples
Sometimes a creditor will turn down an application for credit because someone made an error in evaluating the applicant's qualifications. Sometimes credit is denied for a reason that the creditor fails to explain. If you feel that one of these situations applies to your case, this letter should help you get an answer and a reconsideration of your application.
How to write this credit letter:
- Acknowledge having received the denial.
- Request an explanation for the denial.
- If you think the creditor has received faulty information about your credit history or financial standing, say so.
- Request that the creditor reconsider your application.
Example Letter #1
I just received your letter denying my application for credit due to "late payment history" and "insufficient income." I have never been late on any payments and I just received a raise. Either there was a mistake in your evaluation or the credit information you used was incorrect. Would you please reconsider my application? If there is any additional information you need, please let me know.
Example Letter #2
Yesterday, I received your letter denying our request for a credit account. We are puzzled by your decision as we have an excellent credit history. Will you please tell us why you denied the application? We can only assume that one of our credit references has made an error. We will be happy to supply you with the correct information with appropriate documentation, so that you can reconsider our application.
Example Letter #3
I have just received your letter refusing my request for a credit line. Will you please tell me what factors specifically lead to your decision to deny me credit? I am concerned that one of my references must have misreported my credit history information, as I have been meticulous in maintaining a spotless credit record, and my debt load is very modest relative to my income. Please tell me which of my references reported negative information on me, so that I may resolve this matter with them. I have reviewed copies of all the forms I submitted to you and found them to be correct. I hope that you will promptly reconsider my credit request and inform me of the result as soon as possible.
Example Letter #4
Your denial of our recent credit application has caught us off guard. As we were very confident of acceptance, we are hoping you will provide us with an explanation of your decision. We are aware that John's name has been confused with another H. Doe in the past, and fear that this may have been the case once more. We will be happy to resubmit our income and debt information if this will help in your re-evaluation of our file. Please contact our office when you have reviewed our application and arrived at a decision.
Write Your Letter Step-by-Step
1 Acknowledge having received the denial.
Sample Sentences for Step 1
- I received your denial of my request for credit on August 30.
- I was dismayed to discover that you turned down my credit application.
- We were surprised to learn of your decision not to grant us the credit account we requested.
- I applied for a charge account on May 15, and have just received your prompt reply denying my request.
- Your letter informing us that our request for a credit account had been denied arrived yesterday.
- We have just received your refusal of a credit arrangement with our company.
Sample Phrases for Step 1
- based upon credit information
- denied my request for
- had been denied
- had been turned down
- have just received
- informed us that
- my request for credit has
- my credit application has
- my application for a charge account
- received your letter turning down my
- received your denial of
- the credit account we requested
- was amazed that
- was distressed to receive
- was dismayed to discover
- were surprised to learn of
- your denial of
- your reply to our
- your refusal to grant us
- your decision not to
2 Request an explanation for the denial.
Sample Sentences for Step 2
- Since this questions our integrity, we respectfully request an explanation of why we have been denied this consideration.
- May we inquire as to why you made that decision?
- I would like to know on what information you based this decision.
- I would like to know why you decided against our request, so I can correct the problem.
- Because our credit history is excellent, we are puzzled that the Doe Corporation would deny us an account. Perhaps there has been a misunderstanding. Would you please explain your decision?
- Since we have been profitable customers of yours for two years, I think you can understand our dismay at having received your negative response to our credit application. Would you be so kind as to tell us why you have made this decision?
Sample Phrases for Step 2
- are puzzled as to why
- are wondering why
- made the decision based on
- may we inquire why
- must have been a misunderstanding
- on what information you based this
- please explain your decision
- request that you explain
- respectfully request an explanation
- send me an explanation
- since this reflects on
- so I can correct the problem
- the reason for denial
- the basis on which you made
- the reason for your decision
- was there perhaps
- why you decided against
- why this request has been denied
- would appreciate your
- would you be so kind
- would like to know
3 If you think the creditor has received faulty information about your credit history or financial standing, say so.
Sample Sentences for Step 3
- Because our credit history is spotless and we have never made a late payment, we can only conclude that there must have been an error in your information.
- Since I have asked for a low initial credit line, and I have a substantial income and a good credit rating, I question whether your credit information is correct.
- Your letter states that because of our present obligations, you cannot grant us a credit account. I have no idea what you are referring to and can assure you that we are not involved in any heavy obligations. I am resubmitting the form showing all our financial obligations at this time.
- We are shocked that the Doe Corporation gave us such a negative reference because we have been an exemplary credit customer for the past five years. I think there must be some mistake. It would not be the first time my name was confused with another person's.
- There must have been an error at some point in my credit evaluation. Perhaps I or someone else made a mistake. Enclosed is another copy of the forms you asked me to complete. I have checked all the information and it is correct.
Sample Phrases for Step 3
- according to your letter
- based on erroneous information
- can only conclude that
- certainly not overextended
- do not understand
- given such a negative review
- have never made a late payment
- have no idea what
- have been exemplary customers of
- is difficult to understand
- must have given you
- must have been an error
- must be some mistake
- my credit evaluation
- our spotless credit history
- perhaps someone made a mistake
- question whether your information is
- received faulty information
- some incorrect information
- there must have been
- was, perhaps, confused with
- your reference to
- your letter states that
4 Request that the creditor reconsider your application.
Sample Sentences for Step 4
- We would like you to reconsider our application with the addition of my father, John Doe, as a cosigner. As you will discover in your review of his credit history, he has very strong credit and, in the unlikely event that we could not make our payments, would be in a situation to ensure the payments are made.
- If your decision was based on erroneous information, I would appreciate your prompt reevaluation.
- In your reconsideration of our application, please note that we would like to offer an additional down payment of $1,000.
- We ask that you reconsider our application.
- I trust that you will take appropriate action to correct this error.
- To help you improve your assessed risk in granting us credit, we would like you to reconsider our application with the addition of our offering your company a full lien on our 2019 automobile, which we own free and clear.
- I would like you to reconsider my application for credit with an offer of an additional $500.00 as a security deposit.
- In light of this new information, I trust you will reconsider your decision.
- I will be happy to supply you with additional information for your reconsideration of my application.
- Will you review your decision and contact me as soon as possible?
Sample Phrases for Step 4
- as soon as possible
- ask that you
- based on the following information
- enclosed another application form
- enclosing a copy of
- have my application reconsidered
- in light of
- in view of the
- let me know
- please do whatever is necessary
- please contact me
- reconsider our application
- reconsider your evaluation
- reconsider your decision
- request that you
- review your decision
- this time, I trust you will
- this new information
- to correct this error
- trust that you will
- will take appropriate action
- will be happy to supply you with
- would appreciate your
- would like to reapply
- your prompt evaluation