A letter of good standing is used in many different situations. It is usually used to verify the character, the status, or the financial background of a person. For example, if you were applying for a car loan, and the dealership was trying to determine if you were a viable candidate, they may request a letter of good standing from your landlord to verify you are making the rent payments every month. This would show them that you would also be able to make car payments. A letter of good standing may also be issued by an academic institution, proving that a student is not on academic probation and is successfully completing their course requirements.

Sample letter of good standing

Barbara J. Jeter

2870 Nancy Street
Durham, NC 27703

Dear Ms. Jeter,

I am writing to confirm that Dave Brown is in good in terms of his rent at 245 Bloor Street, Chicago, Ill.

He has been making monthly payments on his apartment for the last 6 months, starting on July 1^st, 2009, and has never been late. Currently, he is paid up to date on his rent.

Sincerely,

Fletcher Hill

Landlord