Your credit score can be greatly impacted by late payments, but the consequences go far beyond the expense of incurring late fees or penalty APRs. The primary factor of your FICO score is your payment history. Therefore, if you have negative items on your credit report, like late payments, it is advised that you have them removed with a Goodwill letter.
Hey there, credit warriors!
We’ve all been there—missed a payment and felt the pinch of a late fee. Fortunately, with a goodwill letter, you may be able to remove those late payments from your credit report and raise your score.
What is a goodwill letter?
Think of it as a heartfelt plea to your creditor. In essence, you’re saying, “Hey, I made a mistake, but I accept responsibility and I’m determined to improve.” Please give me another opportunity and have this late payment taken out of my file. “.
So how do you write a goodwill letter that actually works?
Here’s the secret sauce:
1. Start with a strong opening.
Address the creditor respectfully and thank them for their time. This sets a positive tone and shows that you’re serious about your request.
2. Explain the situation.
Be honest and upfront about why you missed the payment. Did you lose your job? Have a medical emergency? Be as specific as possible and provide any supporting documentation you might have.
3. Own up to your mistake.
Don’t make excuses or try to blame someone else. Accept complete accountability for your actions and demonstrate your understanding of the consequences of your late payment.
4. Highlight your positive payment history.
Make sure to bring up your excellent payment history if you have one. This demonstrates to the creditor that you are an accountable borrower and that this instance of late payment was unrepeated.
5. Express your commitment to future payments.
Let the creditor know that you’re committed to making all future payments on time. This reassures them that you’re serious about improving your credit score.
6. Keep it concise and professional.
Your goodwill letter should be clear, concise, and to the point. Avoid using jargon or technical terms that the creditor might not understand.
7. Proofread carefully.
Make sure your letter is free of typos and grammatical errors. This shows the creditor that you’re taking this seriously.
Now, let’s talk about some additional tips that can increase your chances of success:
- Send your letter to the right person. Make sure you’re addressing the letter to the correct department or individual at the creditor’s company.
- Send it certified mail. This ensures that the creditor receives your letter and that you have proof of delivery.
- Follow up. If you don’t hear back from the creditor within a few weeks, follow up with a phone call or email.
- Be patient. It may take some time for the creditor to review your request and make a decision.
Remember, there’s no guarantee that your goodwill letter will be successful. However, if you follow these tips and write a compelling letter, you’ll increase your chances of getting the late payment removed from your credit report.
Here are some additional resources that you might find helpful:
- NerdWallet: https://www.nerdwallet.com/article/finance/goodwill-letter
- OVLG: https://www.ovlg.com/letters/goodwill-letter.html
Good luck!
P.S. Don’t forget to share this article with your friends and family who might also benefit from learning how to write a goodwill letter.
How to write a Goodwill letter to remove late payments
Goodwill request letters are unofficial but professional, business-related mails. So, they must be brief and precise. These correspondences ought to detail the circumstances surrounding the late payment and the steps you’ve taken to ensure it doesn’t happen again.
In a Goodwill letter, you should provide the creditor with as much information as possible. If you give your creditor every detail, there’s a greater chance that they can fulfill your request without needing to do extra work.
The following details should be in your letter when writing Goodwill letters to creditors:
- Your account number and address.
- The name and location of the creditor.
- Date of late or delayed payments.
- A succinct justification for the late payment and acknowledgement of responsibility
- An alert about the things you’ve done to improve your creditworthiness, like setting up autopay
- Your specific and straightforward request to have the negative information removed from your credit reports—also referred to as a “goodwill adjustment”—
- Copies of any supporting records, including hospital bills, should you have recently experienced a medical problem
If you would like to have NEGATIVE items removed from your credit reports, here is a sample Goodwill letter template that might get you started:, Dear, Re:
What are the differences between a Goodwill Letter and a Pay For Delete Letter
Many people consider that Goodwill letters and pay for delete letters are similar.
However, a Goodwill letter requests creditors to remove genuine, negative late payment entries. A pay for delete letter, on the other hand, requests that a creditor remove an account or any other negative item from your credit report in exchange for payment of the full amount owed, a portion of the amount owed, or nothing at all. You can use a pay for deletion letter if the amount you owe the credit bureau cannot be disputed.
Both these two different letter types erase bad credit information from your credit report. However, neither is guaranteed to be successful; instead, it will rely on the creditor’s or collection agency’s policies and attitude.
Writing An Effective Goodwill Letter | Essential Steps To Remove Late Payments
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