1. A letter to refuse an application for credit, either from a business or a private citizen, should maintain the good will of the reader. Commonly, your declining letter should still leave an open door for future applications from the same person or business.
  2. Express gratitude to the applicant for requesting credit.
  3. Maintain a soft tone in refusing, if possible, by pointing out useful items in the reader's application. Explain the details why his or her application was denied.
  4. Provide, if possible, other possibilities or ways of doing business.
  5. Encourage him or her to apply some other time again.


[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-

Dear [Recipients Name],

We recently received your application for credit. We have carefully reviewed your application but are unable to facilitate your request. We would be happy to reassess your claim if you were able to find a co-signatory for your loan.

Thank you for considering All-Star finance for your financial needs.


[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -