How to Write a Goodwill Letter to a Creditor

A goodwill letter is a formal request sent to a creditor, asking them to remove a negative mark from your credit report. This type of letter is typically used for minor, isolated incidents, such as a single late payment, rather than addressing significant financial challenges or multiple missed payments. A well-crafted letter can sometimes lead to a positive outcome.

The Purpose and Effectiveness of a Goodwill Letter

A goodwill letter serves as a direct appeal to a creditor for the removal of a negative item, most commonly a late payment, from your credit report as an act of discretion. This request is based on the premise of a one-time oversight or a genuine, albeit temporary, hardship that led to the payment delay. It is not a dispute of an inaccurate entry, but rather an acknowledgment of responsibility coupled with a plea for leniency.

Creditors may consider such requests when an account otherwise demonstrates an excellent payment history and the late payment is an isolated incident. Scenarios like an unexpected medical emergency, a temporary job loss, or a verifiable billing error can strengthen your case. Granting a goodwill adjustment is entirely at the creditor’s discretion, as they are legally required to report accurate information to credit bureaus.

Essential Information to Prepare Before Writing

Before drafting a goodwill letter, collecting specific account and incident details is necessary to ensure accuracy and clarity. You will need the exact name of the creditor and the specific account number associated with the negative mark.

You must pinpoint the precise date(s) of the late payment(s) and, if applicable, the original amount that was due, along with the date the payment was eventually made. Understanding the legitimate reason for the late payment is also crucial, whether it was due to a medical emergency, a temporary job disruption, or a verifiable administrative error. Providing a clear, concise explanation for the delay helps the creditor understand the context of the situation and demonstrates your sincerity.

Structuring and Writing Your Goodwill Letter

When composing your goodwill letter, begin with a professional salutation addressed to the creditor. Clearly state the purpose of your letter early on, indicating that you are requesting a goodwill adjustment for a specific late payment on your account. Provide your full name, account number, and the exact date(s) of the late payment(s).

The body of the letter should include a concise and honest explanation of the circumstances that led to the late payment. While explaining the situation, take full responsibility for the missed payment and avoid placing blame on others. Emphasize your otherwise consistent and positive payment history with the creditor, highlighting your commitment to timely payments.

Conclude your letter with a polite and humble request for the creditor to consider removing the negative mark from your credit report as a gesture of goodwill. Reassure them that you have taken steps to prevent similar incidents in the future, such as setting up automatic payments or improving financial management. Maintaining a respectful and concise tone throughout the letter is important, as you are asking for a favor, not demanding a right.

Submission and Following Up

After completing your goodwill letter, determine the most appropriate submission method. Common options include mailing the letter, utilizing an online portal if available, or sending it through a secure message center. Addressing the letter to the customer service department or the credit dispute department is generally advisable.

It is recommended to retain copies of the letter and any supporting documentation sent for your records. If you do not receive a response within approximately 30 days, a polite follow-up by phone or another letter may be appropriate. Regularly checking your credit report will allow you to see if the negative mark has been removed.