In a Nutshell: Writing a goodwill letter to your creditors may help to remove negative information from your credit reports, though this is not a guaranteed outcome. Here’s when and how to try this credit tactic. Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect.
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Do you have a late payment or other negative mark on your credit report that’s dragging down your score? You’re not alone. Millions of Americans have blemishes on their credit reports that can make it difficult to qualify for loans, credit cards, and even jobs. But there’s a little-known tactic that could help: the goodwill letter.
What is a goodwill letter?
A goodwill letter is a written request to a creditor or collection agency asking them to remove a negative mark from your credit report. It’s not a magic bullet, but it can be an effective way to improve your credit score, especially if you have a good track record of on-time payments and a strong credit history.
When to consider using a goodwill letter:
- You have a legitimate reason for the missed payment or other negative mark, such as a job loss, medical emergency, or technical error.
- You have a good track record of on-time payments and a strong credit history.
- You’ve already tried disputing the negative mark with the credit bureaus and were unsuccessful.
How to write a goodwill letter:
- Keep it brief and to the point.
- Explain the reason for the missed payment or other negative mark.
- Take responsibility for your actions and express remorse.
- Ask the creditor or collection agency to remove the negative mark as a goodwill gesture.
- Be polite and professional.
What to include in your goodwill letter:
- Your account number and address.
- A brief explanation of the situation that caused the error.
- The steps you took to correct the issue and ensure it wouldn’t happen again.
- How the negative mark is affecting you, such as if it’s hindering your ability to qualify for a mortgage.
- A request for a “goodwill adjustment” to have it removed.
Here are some additional tips for writing a goodwill letter:
- Personalize your letter and be sincere.
- Proofread your letter carefully before sending it.
- Send your letter via certified mail so you have proof of delivery.
- Follow up with the creditor or collection agency after a few weeks if you don’t hear back.
What are the chances of a goodwill letter working?
There’s no guarantee that a goodwill letter will work, but it’s worth a try. Some creditors are more likely than others to grant goodwill adjustments, so it’s important to do your research. You can find sample goodwill letters online and in credit repair guides.
What if my goodwill letter is denied?
If your goodwill letter is denied, don’t give up. You could attempt to write another letter or make a phone call to the creditor or collection agency. You can also try disputing the negative mark with the credit bureaus again.
The bottom line:
Although it’s unlikely, a goodwill letter might be your pass to improved credit. It’s worth a try if you have a good history of making your payments on time and a valid explanation for the negative mark.
If your credit reports are in relatively good shape but you’ve got one missed or late payment that you believe is hurting your credit scores, writing a goodwill letter to that creditor could erase the blemish.
Sending a goodwill letter to a creditor requests that it get in touch with the credit bureaus and have a valid negative mark (one that you are responsible for) removed from your credit reports. Even though the creditor is not required to comply with your request, it might be kind enough to ask the bureaus to erase the negative mark, which could raise your credit scores.
When to consider using a goodwill letter
According to Griffin, the lender is less likely to grant your goodwill wish if you have a history of missing payments or other risk factors, like large credit card balances. Additionally, if you can’t provide a valid reason for the error—for example, you simply forgot to make the payment—your request won’t be as successful.
But Griffin says there are instances in which a lender might agree to remove a late payment.
For instance, if the borrower has never been in arrears before, makes up the missed payment right away, and requests that it be taken off their credit record, the lender may comply. Life happens, and they and Experian understand that. ”.
Here are some circumstances where it makes sense to try a goodwill letter if you have a solid credit history and a history of on-time payments.
- Because of a financial hardship, such as losing your job or getting divorced, you failed to make a payment.
- An emergency, such as a medical emergency that sent you or a loved one to the hospital, caused you to miss a payment.
- An error occurred in the payment system, such as autopay not functioning properly.
- The bill wasn’t delivered to your new address after you moved.
Writing An Effective Goodwill Letter | Essential Steps To Remove Late Payments
FAQ
How likely is a goodwill letter to work?
Do goodwill letters to creditors work?
What is a goodwill letter to remove a closed account?
What department do I send a goodwill letter to?
Do you need a goodwill letter?
If you have a good payment history with your creditor or lender, there is hope – no matter how small – in the form of a goodwill letter. What Is a Goodwill Letter? A goodwill letter is your attempt to convince creditors and lenders to remove a late or missed payment from your credit reports.
Should I write a goodwill adjustment letter?
While creditors don’t have to grant your request, writing a goodwill adjustment letter is simple and can’t hurt your credit. Keep in mind, if there is an erroneous late payment on your credit report, you should dispute it, not write a goodwill letter.
Do goodwill letters still work in 2022?
You can use a goodwill letter to fix your problem. Yes, goodwill letters still work in 2022. Similar to other aspects of improving your personal finances, the best part is that you can get started on it not just in 2022, but today. If you’re ready to discover everything you need to know about a goodwill letter, let’s get started!
Does a goodwill letter remove a negative mark?
Goodwill letter requests are sent to creditors, not credit card bureaus. Only the creditor that reported the late payment can remove the negative mark. By removing the late payment, you can continue to build up your credit without the consequences of a negative mark.