How to Decline a Credit Request (Samples & Free Templates)

Ideally, credit declining letters are usually written by clients to banks or even businesses to businesses to decline requests on credit applications, and this might be due to several reasons inclusive of; your loan balances or credit accruals being too high. There are too many inquiries on your credit report, your income is too low to pay back, you have too many credit cards, you have a recent public record, your loan delinquency is too recent, you have a charge on your credit report among other reasons.

How to decline a credit request?

For the lender to decline the credit application more effectively and still maintain a productive relationship with the borrower, the following steps need to be followed;

The first step is to figure out the customer’s underlying motivations. This is where the real work starts since you need to establish a rapport as well establish what the borrower is trying to achieve and by so doing you will get to know what to say to the borrower in case of declining the request. 

Draw your quick game plan. In most cases, customers might need something, but on the other hand, they might not know they need something else. In other cases, you might not be in a position to honor their request, and this way, as you plan to decline their request, gather several alternatives through which they can utilize and not feel helpless.

Lastly, tell them your stand, that is; what you can do and what you cannot. It might not be exactly what they were expecting, but through the above steps, it might be a bit consoling as well beneficial to them.

Sample letter to decline a credit request

(Sender’s Name)


(State, Zip Cade)



(Recipients Name)

(Address Line)

(State, Zip Code)




RE: Declining You Credit Application


Dear, (Recipient’s Name)

Thank you for your recent credit application with our company, we really appreciate your efforts as well as interest in doing business with our company.

Regretfully, this is to notify you that your application was declined due to the fact that your credit accruals are too high. In relevance to our policies and evaluation criteria, we don’t approve credit applications from individuals or businesses/organizations that are below an average of 500 creditworthiness. After conducting a thorough analysis on your company in relevance to the information you presented to us, we discovered that you are owing amounts amounting close to $3.44 million and comparing this to your total assets it gives us an average of 498.6 creditworthiness.

Nonetheless, you have the right to conform to the scope as well nature of the information stated in this letter is not less than ten days from the date you receive this letter. Meanwhile, we can offer our services as well as professionalism in credit resolving to assist you in improving your creditworthiness. Our company is customer oriented and values its customers, and for that, we look forward to being of any assistance to you as well keeping up our current relationship for future endeavors. 


Yours sincerely,

(Sender’s Name)

(Sender’s Title)

(Cc, if applicable)


Credit decline letter examples

Decline a Credit Request Letter 01

Decline a Credit Request Letter 02

Decline a Credit Request Letter 03

Decline a Credit Request Letter 04

Decline a Credit Request Letter 05

Rejection Letter About Credit Report

Rejection Letter of Credit Application

Rejection Letter of Credit Card

Sample of Credit Refusal Letter 01

Sample of Credit Refusal Letter 02

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