Credit Denial Letter Templates and Samples

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What Is a Credit Denial Letter?

A Credit Denial Letter is a document that contains the rejection of a credit application by a potential lender. The purpose of the letter is to notify a prospective borrower that their application for credit has been denied. The letter can be used to decline a home loan, a study loan, a credit card, etc. 

Alternate Names:

  • Credit Application Denial Letter;
  • Denial of Credit Letter.

One of the main parts of the Credit Denial Letter should be a statement that explains why the credit application was denied. It can be because they have limited credit history, low income, too much debt, or other factors. Stating the reason why the application was rejected gives the applicant a clear understanding of the situation and the opportunity to improve their position in order to reapply.

For a full list of Credit Denial Letter templates and samples please check out our library below.

How to Write a Credit Denial Letter?

Usually, a Denial of Credit Letter consists of several parts, which include the following:

  • Introduction. In the first part of the letter, the rejector should state who they are addressing. They should enter the credit applicant’s name, full address, telephone number, and email. The address can include zip code, state, city, street name, and building number;
  • Information About the Denial. Here the rejector should announce that the credit application was denied. They should provide information about which application was denied by stating its date and number (if applicable). If the rejector can reconsider the decision they have made, they can state that and explain what the credit applicant should do to meet their criteria. For example, they can request additional documents and state the time period during which the credit applicant should submit those documents;
  • Reasons for Denial. Rejectors can use this part of the letter to designate the reason (or list reasons, if there are more than one) why the credit application has been denied. It can include reasons such as insufficient credit references, delinquent credit obligations, poor tax records, bankruptcy, incorrect financial details, etc.
  • Additional Information. If the rejector has conducted a screening of the credit applicant, then they can provide information on what agency has made a report. They can attach a copy to the letter or offer the credit applicant to request its copy from them;
  • Contact Information. The rejector can provide their contact information, in the case the credit applicant will have any questions. They can state the name of the person to contact, their email, telephone number, and postal address (if applicable);
  • Conclusion. In the last part of the letter, the rejector should thank the credit applicant for addressing them and express appreciation of the applicant’s interest in them. They can also designate that they regret the denial of the application, and hope to work with the credit applicant if they apply for credit again in the future.

A Credit Application Denial Letter can include other parts as well. Its content will depend on the specifics of the situation and on what a prospective lender would consider as valuable information to share.


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Sample "Credit Denial Letter"

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Debt Letter Template Letters

"Credit Denial Letter Template"

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Debt Letter Template Letters