Yesterday, I posted an email I received from a reader reminding us of the value of credit unions. One of the things done was to send the credit union and letter, and here it is. This letter will need to be changed to fit your situation, but it gives you an idea of a letter that can be written. Thank you to my anonymous reader who provided this
City State Zip
To Whom It May Concern:
It was with great displeasure that I received an Adverse Action Notice in response to my application for a personal loan from your institution (see enclosed). My present financial condition is certainly not new to me, so your notice was not wholly unexpected. I was hoping, however, that through this letter I could begin a dialog that could explore the middle ground between my application for the maximum personal loan amount and your complete denial of credit.
As I said, my current financial condition is not something of which I am unaware. A period of unemployment and two moves across the country, combined with very poor financial decisions, have led me to this position. After years of bad decisions and spotty payment histories, I now find myself, not only with high credit card balances, but interest rates near the maximum legal limit.
I am, however, finally in a position to right my financial ship. [explain how you can make payments]
It is with my recent good fortune that I would like to build for my financial future, and finally dig out from under my mountain of debt.
As stated above, I am hopeful that this letter could open a discussion as to the conditions that would need to be present for [bank name] to consider something other than an adverse action. Relevant to this conversation, I think, would be – a lower requested loan amount; the possibility of a consignor; direct payroll deductions; and closure of outstanding credit card accounts all of which I am certainly open to.
In applying for this loan, I was of the (apparently misguided) belief that my stable employment history combined with a direct payroll deduction would lessen any concerns [bank name] would have about being repaid in full. Even being able to pay off one credit card with a loan carrying a lower interest rate would be a step in the right direction for me.
I realize any further correspondence or assistance on this matter is only out of courtesy, and for it you have my gratitude. I would happily make myself available to discuss this matter further at your convenience. Thank you again, in advance. I look forward to hearing from you.