How to Write a Goodwill Deletion Letter

A goodwill deletion letter is a formal request to a creditor, appealing for leniency to remove an isolated negative entry from your credit report that you acknowledge as your responsibility. It is often used for a single late payment that occurred due to an unforeseen circumstance, especially after a consistent history of on-time payments.

The primary objective of a goodwill letter is to mitigate the impact of such an incident on your credit score. While a late payment can remain on your credit report for up to seven years, a successful goodwill request can lead to its removal, potentially improving your credit standing. It is important to understand that submitting a goodwill letter is a request for a courtesy, not a demand, and creditors are not obligated to grant it.

Gathering Essential Information

Before drafting a goodwill deletion letter, collect specific account and personal details to ensure accuracy and help the creditor locate your account and evaluate your request. The exact name of the creditor or collection agency is required, along with the specific account number associated with the negative mark you wish to address.

You will need the precise date or dates of the negative entry, such as the month and year of a late payment. Details regarding your payment history with that creditor are also important, including years of on-time payments before and after the incident. Your full name, current mailing address, phone number, and email address should also be readily available for contact purposes.

Briefly note the specific, justifiable reason for the late payment. This explanation should be factual and concise, such as a medical emergency, temporary job loss, or administrative oversight due to a significant life event. This information frames the incident as an anomaly, not a pattern of financial irresponsibility.

Structuring Your Goodwill Letter

Your goodwill letter requires a standard business format and a respectful, concise tone. Begin by placing your full name and contact information, including address, phone number, and email, at the top left, followed by the current date. Below that, include the creditor’s full name and mailing address. The salutation should be formal, addressing a specific department if known, such as “To Whom It May Concern” or “Dear [Creditor Name] Customer Service.”

The opening paragraph should clearly state your letter’s purpose. Identify the account by number and specifically mention the negative mark, such as a late payment reported on a particular date. For instance, you might state you are requesting removal of a late payment reported for your account ending in [Account Number] on [Date of Late Payment].

Briefly explain the reason for the isolated incident, taking responsibility for the oversight without making excuses. Frame the event as an unexpected occurrence that led to the missed payment, such as a temporary illness or a disruption in billing, ensuring the explanation is brief and to the point.

Highlight your otherwise positive payment history with the creditor. Emphasize your long-standing relationship and consistent on-time payments both before and after the incident. This demonstrates your reliability as a customer and underscores that the negative mark is not reflective of your usual financial behavior. You can also mention any improvements in your financial situation since the incident, such as maintaining a zero balance or consistently paying on time for a period of months.

Clearly state your request for a “goodwill adjustment” to remove the specific negative mark from your credit report. Express your appreciation for their consideration and hope for a favorable review of your request. Maintain a polite and appreciative closing, such as “Sincerely,” followed by your typed name and signature. It is important to avoid aggressive language, excessive personal details, or irrelevant information, as the letter should remain professional and focused on the request.

Submission and Awaiting a Response

After completing your goodwill letter, submit it directly to the creditor or collection agency that reported the negative information, not to the credit bureaus. You may find the correct mailing address on billing statements, the creditor’s website, or by contacting their customer service to inquire about a “goodwill department.”

Sending the letter via certified mail with a return receipt requested is a recommended practice. This method provides proof of delivery, confirming that the creditor received your request. While some suggest certified mail appears confrontational, it provides an undeniable record of submission, useful for later reference.

Include copies, never originals, of relevant supporting documents, such as proof of payments made after the missed payment or documentation related to the unforeseen circumstance. However, only include documents that directly support your explanation and are concise.

It is important to manage expectations regarding a response. Creditors are not legally obligated to grant goodwill requests or even to respond to them. Response times can vary, and some larger financial institutions may have policies against accepting goodwill letters due to regulatory requirements for accurate reporting. If you do not hear back within 30 days, you might consider a polite follow-up phone call or a second letter. Continuously monitor your credit report for any changes, as a positive outcome might appear without direct notification.