Credit Reference Letter: How to Write (6 Best Samples)

When you are a new customer with a lender, utility provider, or supplier, those service providers don’t necessarily know if you will pay your bills on time. As a result, it becomes risky for them to offer you anything on credit (without requiring you to pay upfront). But a credit reference letter might help convince them to provide you with more favorable terms on the service or loan you require.

Examples & Templates

A credit reference letter serves as a formal document that provides information about an your creditworthiness and financial history. It is typically requested to assess the creditworthiness of a potential borrower or tenant. When it comes to writing a credit reference letter, utilizing templates can offer several benefits.

Sample Credit Reference Letter

Sample of Positive Credit Reference Letter

Landlord Credit Reference Letter

Utility Company Credit Reference Letter

Editable Email Credit Reference Letter Sample

Mortgage Credit Reference Letter

Free Bank Credit Reference Letter Template

    What is a Credit Reference Letter?

    A credit reference letter is a document that verifies the credit worthiness of a potential borrower. It is letter from a bank or any other financial organization with whom an individual or company has banked with for a period of time that proves that the individual or company has a good credit record. It is used to assure the third party that the individual or company ensures timely payment of financial obligations and that he/she should be trusted. The terms stipulated in a credit reference letter must be accepted and agree to by the individual or company that has requested for it.

    When and Where a Credit Reference Letter is Required

    A credit reference letter is required when one is starting a business in a foreign country, he/she may request fir credit reference letters from banks with whom he/she has worked with in the past to prove his/her credit worthiness. This helps build trust and confidence that the borrowed finances have a high chance of being repaid and on good time. A credit reference letter is also required when borrowing money from an individual, bank or any other financial institution or investing company. It is also a requirement when you are new with a supplying company as failure to print one will require you to pay upfront cash for every single transaction.

    Use our free Credit Reference Letter Samples and a clear guide to have a clear illustration on how to write a reference letter that is appealing to your client.

    What to Include

    There are essential items that you must be included in the letter; they include:

    1. Length/duration of the relationship: How long have you been their customer?
    2. Payment history: Do you often pay on time? Are you currently behind on your payments? Have you had any late payments during the last 12 months?
    3. Type of service: what products and/or services do you often buy from the reference provider?
    4. Terms of Credit: Does the agreement require that you make the payment within 30 days, for instance?
    5. Address of Service: Especially for utilities, the type of service and the address are important. Multiple addresses are not usually an issue, especially if you moved several times while using the same provider.
    6. Total payment amounts: what’s the total amount you have paid over the duration of your relationship? This information helps the requesters to gauge the size of your relationship.
    7. Late payments: Have you had any late payments in the past? If so, how many times?

    Sample Credit Reference Letter

    November 7th, 2017

    Peter Smith,

    Banking Services & Org.

    5023 WH 6th St.


    PA 62001 USA

    To whom it may concern:

    This letter is written to inform you that____________ ID number______________is our client and has been banking with our organization since____________. He/she has worked to maintain a good relationship with us as well as an outstanding credit worthiness. On an individual level and as a banking organization we feel that he/she has handled her financial obligations in a fulfilling manner and qualifies we will not hesitate to recommend him/her for a loan from your organization. As a result, we believe that he/she will duly adhere to any financial obligations contracted with your financial institution.

    Account Number:____________ Official names:____________Account opened on:____________

    Account has a current balance of $____________as of date ____________.

    If you have any questions or require any further clarification on the information provided please feel free to contact (telephone number____________)

    Name of official ____________

    Title of official ____________

    Telephone or email____________

    It is important to note that this letter must be written on the original bank’s letterhead and should be signed by the proper bank officials. If the language is in another language, it should be translated to English.

    Main Elements to Cover in Credit Reference Letter

    1. The legal name of the business and its owner’s name.
    2. Date and length of time the business has been in operation.
    3. Bank name and account number.
    4. Borrowed finance repayment history
    5. Bank contacts, email, and phone number.
    6. Business address and contacts.
    7. Billing address.
    8. A declaration that the information provided is correct and true.
    9. Authorization to free contact of references to confirm that the information provided is correct.

    Who Can Write for you a Reference letter?

    The person or organization to issue you with a reference letter is normally determined by the lender or service provider. You may, however, need to use the same type of reference: for instance, an electricity company may need you to provide them with a reference letter from your previous electricity provider. Some of the most common uses sources include:

    • Utilities like sewer, gas, electricity, and trash
    • Lenders (home loans, auto loans, and more)
    • Communication service providers such as the internet, phone, cable, and satellite
    • Suppliers to your business
    • Gyms and other monthly subscriptions
    • Leasing companies and landlords

    A credit reference letter normally sticks to the requested information without any required additional commentary. Do not expect the letter writers to give you positive reviews like, for instance, say that you’re a great person off that you’ve been a valuable partner.

    Most people offering credit reference letters are normally hesitant to say more than they need to. If, for instance, they say that “you can’t go wrong” by extending credit, the risk misleading somebody- with potential consequences. If you are writing the credit reference letter for somebody, make sure that you provide accurate information and avoid statements and any predictions that you can’t back up with facts.

    About This Article

    Justin W. Heeg
    Authored by:
    Contract Specialist, Business & Real Estate Attorney
    Justin W. Heeg, Esq., founder of Heeg Law PLLC, brings extensive expertise in legal contract writing, with a special focus on real estate, complemented by a strong foundation in trusts and wills. Previously a prominent figure at Dwight Capital, a premier U.S. commercial real estate lender, Justin played a pivotal role in shaping their mortgage REIT strategy and overseeing legal compliance. His tenure at the esteemed law firm Skadden, Arps, Slate, Meagher & Flom LLP saw him facilitating significant real estate transactions, advising top-tier lenders, and equity firms. With his rich legal background, Justin stands as a trusted expert in both business and real estate law.

    Was this helpful?

    Great! Tell us more about your experience

    Not Up to Par? Help Us Fix It!

    Keep Reading

    Thank You for Your Feedback!

    Your Voice, Our Progress. Your feedback matters a lot to us.