What is a letter of credit history?
A letter of credit history can be obtained from one creditor to prove your creditworthiness to another creditor. That letter is oftentimes supplied by an electric company for a former customer who requests the letter to show a new electric company that he made his payments on time and closed his account in good standing.Your UtilityWhen establishing electric, gas, phone, cable or other utility service for the first time with a new service provider, that company may request a large deposit from you. To have that deposit waived, you need to ask a former service provider for a letter of credit history.The LetterYour utility company will outline the letter requirements. Typically, utility companies cooperate with each other to share such details about former and prospective customers.Your RequestYou may be able to fulfill your utility company’s request by making a phone call to your former provider.
