Credit Letter Templates

What Is a Credit Letter?

A credit letter is a document that aims to settle a dispute, reach an agreement, deny an application, and hand in an approval or a refusal to a transaction. Customers usually get this after having an initial transaction with a bank. 

How to Write a Credit Letter

The Federal Reserve said that in 2019, the total of credit debt reached $4.15 trillion dollars. This is a huge number banks have to deal with. If you need to write a letter to handle a credit transaction, we have a few tips below that you can refer to.

1. Be Mindful of the Tone

You have to keep a polite and formal tone in any circumstance that you're writing this letter. Maintain a straightforward language when delivering the news to the client. Do not use derogatory terms and start your letter by writing about the current status of the transaction. 

2. Explain Your Decision

Provide an explanation to your decision about the credit transaction of the customer. Use simple words and refer to your operating procedures if necessary. You can also tell the customer to refer to the additional documents that you've provided to understand your decision. 

3. Offer Alternatives

To keep customers from going to another bank, you need to offer another alternative for their transaction to be completed. Make them see how the alternative can give them more benefit than harm. Walk them through the process of availing your other services. 

4. Encourage a Response

End your letter by saying that you're open for inquiries and putting your contact information on the last paragraph of the simple letter.