Credit Authorization Letter
Subject: Credit Authorization Letter
Dear [Recipient's Name],
I am writing this letter to authorize [Authorized Person's Full Name] to use my credit on my behalf for any transactions and purchases with [Name of the Vendor/Creditor]. This authorization is effective from [Start Date] to [End Date], unless otherwise specified.
Below are the details of the authorized person:
Full Name: [Authorized Person's Full Name]
Date of Birth: [Authorized Person's Date of Birth]
Contact Number: [Authorized Person's Contact Number]
Relationship to Me: [Authorized Person's Relationship to the Credit Holder]
I understand that by granting this authorization, I am allowing the authorized person to make purchases, withdraw cash, and perform any other actions related to my credit account. I will be solely responsible for any charges or liabilities incurred during the authorized period.
I request you to please provide the authorized person with all necessary information and access required to utilize my credit account. Additionally, I ask that you treat this authorization letter as an official document and act in good faith on its terms.
If there are any changes to the authorized person's details or if I wish to revoke this authorization before the specified end date, I will notify your company immediately in writing.
Please find my signature below, acknowledging that I have willingly granted this credit authorization:
Signature: _________________________
Date: _____________________________
Thank you for your prompt attention to this matter. If you have any questions or require further information, please do not hesitate to contact me at the provided contact details.
Sincerely,
[Your Full Name]
[Your Signature if sending a physical letter]
Formal Credit Authorization Letter
Subject: Credit Authorization Approval
Dear [Bank/Financial Institution Name],
I, [Your Name], hereby authorize [Authorized Person's Name] to apply for and receive credit facilities on my behalf with respect to my account [Account Number]. This authorization includes signing necessary documents and collecting related statements or approvals.
Please consider this letter as formal consent and facilitate the authorized person accordingly.
Thank you for your assistance.
Sincerely,
[Your Name]
[Contact Information]
[Date]
Informal Credit Authorization Email
Subject: Authorization to Handle Credit Matters
Hi [Recipient Name],
I hope you are doing well. I authorize [Authorized Person's Name] to manage my credit account [Account Number] on my behalf, including submitting requests and receiving approvals. Kindly allow them to act in this capacity until further notice.
Thanks for your support!
Best,
[Your Name]
Corporate Credit Authorization Letter
Subject: Corporate Credit Authorization
Dear [Bank Manager],
This is to certify that [Employee Name], holding the designation [Position], is authorized to conduct credit-related transactions for [Company Name], including the application, acceptance, and management of credit facilities on behalf of the company.
Please provide all necessary assistance and verify their identification when required.
Sincerely,
[Authorized Signatory]
[Designation]
[Company Name]
Provisional Credit Authorization Letter
Subject: Provisional Credit Authorization
Dear [Recipient Name],
I authorize [Authorized Person Name] provisionally to handle credit-related requests for my account [Account Number] until [End Date]. This authorization is limited to applying for credit, receiving statements, and submitting necessary documentation.
A formal authorization will follow once permanent procedures are completed.
Sincerely,
[Your Name]
Bank Loan Credit Authorization Letter
Subject: Authorization to Process Loan Credit
Dear Sir/Madam,
I hereby authorize [Authorized Person Name] to act on my behalf in all matters concerning my loan application and related credit facilities under account [Account Number]. This includes signing documents, submitting forms, and receiving approvals.
Please accept this letter as formal consent.
Regards,
[Your Name]
[Account Number]
[Contact Information]
Credit Card Authorization Letter
Subject: Authorization for Credit Card Handling
Dear [Bank Name],
I, [Your Name], authorize [Authorized Person Name] to collect my credit card, handle transactions, and manage all related credit matters on my behalf. This authorization is valid from [Start Date] to [End Date].
Kindly provide the required assistance to the authorized person.
Sincerely,
[Your Name]
[Account Number]
What / Why is a Credit Authorization Letter
A Credit Authorization Letter is a formal document that allows an individual or entity to authorize another person to handle credit transactions on their behalf. The purposes include:
- Delegating authority for account management.
- Facilitating loan applications or credit card handling.
- Providing a formal record of consent for third-party actions.
- Ensuring clarity and legal recognition for banking or financial procedures.
Who Should Send a Credit Authorization Letter
- Individual account holders authorizing someone to manage their credit.
- Companies delegating employees for corporate credit transactions.
- Loan applicants appointing a representative for processing.
- Credit card holders authorizing third parties to act on their behalf.
Whom Should the Credit Authorization Letter Be Addressed To
- Banks and financial institutions handling the credit accounts.
- Loan processing officers or branch managers.
- Corporate finance departments (in case of company authorization).
- Any authority responsible for approving or managing credit facilities.
When to Use a Credit Authorization Letter
- When granting someone permission to manage your credit card account.
- During loan application processing by an authorized representative.
- For temporary or provisional delegation of credit authority.
- When transferring corporate credit responsibilities to a designated employee.
- For family members or trusted individuals to handle credit matters during travel or absence.
How to Write and Send a Credit Authorization Letter
- Clearly state the subject: “Credit Authorization” or “Authorization to Handle Credit.”
- Provide full details of the account and the authorized person.
- Specify the scope of authorization (e.g., collect card, submit forms, receive approvals).
- Mention duration if temporary.
- Sign the letter and provide date and contact information.
- Send via email for quick processing or printed letter for formal bank submission.
Requirements and Prerequisites for Credit Authorization Letters
- Complete account details including account number or card number.
- Identification of the authorized person.
- Clear scope and duration of authorization.
- Supporting documents such as ID proof or company authorization (if applicable).
- Compliance with bank or institution policies for third-party authorization.
Formatting Guidelines for Credit Authorization Letters
- Length: Usually one concise page or 2–3 paragraphs.
- Tone: Professional, formal, or occasionally informal depending on recipient.
- Include: Subject line, salutation, authorization statement, account details, scope, signature, and date.
- Mode: Email for digital requests or printed letter for formal banking procedures.
- Etiquette: Polite, clear, and unambiguous wording.
After Sending / Follow-Up Steps
- Confirm that the bank or institution has received and acknowledged the letter.
- Follow up if the authorized person faces difficulties in handling credit matters.
- Keep a copy of the authorization letter for your records.
- Verify completion of tasks handled by the authorized individual.
Common Mistakes to Avoid
- Omitting account or personal identification details.
- Failing to specify the scope or duration of authorization.
- Sending without signature or proper validation.
- Using informal tone for formal banking matters.
- Authorizing someone not trustworthy or unverified by the institution.
Elements and Structure of a Credit Authorization Letter
- Subject line clearly stating purpose.
- Salutation addressing the recipient.
- Identification of sender and account details.
- Name and identification of authorized person.
- Scope and duration of authorization.
- Statement of consent.
- Closing remarks and signature.
- Date of issuance.
- Attachments if required (ID proof, company authorization, etc.).
Tips and Best Practices
- Always check bank or institution-specific requirements.
- Use clear and unambiguous language.
- Include temporary end dates for provisional authorization.
- Ensure the authorized person carries valid identification.
- Retain copies of all letters and approvals for future reference.
FAQ About Credit Authorization Letters
Q1: Can the letter be sent via email?
A: Yes, for most banks, email submission is acceptable, but check the bank's policy.
Q2: Is a signature required?
A: Yes, most formal letters require the account holder's signature to validate authorization.
Q3: Can the authorization be temporary?
A: Yes, specify start and end dates for temporary authorizations.
Q4: Who can be an authorized person?
A: Trusted individuals, employees, or representatives with proper identification.
