Credit reference can be described as the habits of an individual or a company regarding the expenditures and paybacks of the loan and other debts. In simple words, when a person applies for a loan in a mortgage firm, the firm has to make sure first if the applicant will able to handle the financial commitment based on his credit history or not. Once the reference provided by the applicant fulfills the needs and requirements, the applicant is granted the loan.
Introduction to the Request Letter for Bank Credit Reference:
Most of the time when you apply for a mortgage loan or any other type of loan i.e. education loan, vehicle loan, or personal loan, the loan firm has to make sure that if it gives you the loan, you will be able to return it with interest and there won’t be any financial problem on your end in the future. If you can’t pledge any personal property with the loan firm as collateral or guaranty for the safe return of the loan, you will need to include a good reference in the application i.e. bank that is handling your credit cards and loans currently. This way when the loan firm contacts the bank and asks for your credit history, the bank can satisfy the estimators that you are a good debtor. The formal letter to get credit history from the reference is known as the request for bank credit reference and it is usually sent by the company rather than the credit owner himself.
What one needs to do in order to Request Letter for Bank Credit Reference:
- Get the request and consent letter from the bank:
Each bank has this form available in their branches and online on their websites. If you want to request the credit history of a customer, you need to get this form and fill out the request section. - Fill out the form and send it to the customer and ask him to fill out the consent section:
Then you need to send the form to the customer and ask him to fill out the consent section and return this form to you. - Get the form back from the bank and send it to the bank:
After that, send the letter to the bank and wait for them to respond to you. In case of any delay from the bank, follow up with your request and find out what is taking the bank so long to respond to your request.
Key elements to include in the Request Letter for Bank Credit Reference:
- Name of the person who is requesting the credit reference with complete address
- Name of the company that is requesting the credit reference
- Name of the credit owner who provided the name of the bank as credit reference
- Date when the request letter is being sent to the bank for credit history
- Details of the credit history that the applicant needs to verify from the bank
- Written consent of the credit owner who allowed the transfer of credit history
- Duration in which the bank is asked to respond with the credit history
- Signature of the person who is sending the request letter
Here is a preview of a Free Sample Request Letter for Bank Credit Reference created as a fillable PDF Form,
Here is the download link for this Request Letter for Bank Credit Reference,
