How to Write a Goodwill Letter to Remove Late Payments

A goodwill letter is a formal request to a creditor or lender to remove a late payment mark from your credit report. It is typically used for an isolated incident, often due to unusual circumstances. Its purpose is to explain the situation that led to the missed payment and politely request removal of the negative entry from your credit history.

Understanding Goodwill Letters

A goodwill letter relies on the creditor’s “goodwill,” valuing a long-standing customer relationship. Creditors may consider these requests for customers with a positive payment history. This approach is appropriate for a single, isolated late payment rather than a pattern of missed payments.

A goodwill letter is a request, not a demand, and success is not guaranteed. Creditors are not legally obligated to remove accurate information from your credit report, even if negative. This request applies to genuinely late payments, distinguishing it from a dispute over an inaccurate payment record.

Gathering Necessary Information

Before drafting your goodwill letter, gather necessary information. You will need the account number for the relevant credit or loan where the late payment occurred. Know the date or dates of the late payment you wish to address.

Prepare a concise, honest explanation for the late payment, such as a medical emergency, temporary financial hardship, or genuine oversight. Highlight a history of good payments before and after the incident, demonstrating consistent financial responsibility. Finally, locate the creditor’s contact information, including their mailing address and the appropriate department.

Crafting Your Goodwill Letter

Begin your letter with your contact information and the current date, followed by the creditor’s contact information, addressed to the appropriate department. Use a formal salutation, such as “To Whom It May Concern.” Clearly state the letter’s purpose in the opening: to request removal of a specific late payment mark from your credit report.

Include the account number and the date(s) of the late payment(s) you are addressing to help the creditor identify your record. Provide a brief, clear explanation for the late payment, emphasizing it was an isolated incident not typical of your payment behavior. Avoid excessive detail, focusing on facts and taking responsibility for the oversight.

Highlight your consistent on-time payment history both before and after the incident to demonstrate your reliability as a customer. Politely request the removal of the late payment mark from your credit report, explaining its potential negative impact on your financial standing. Reaffirm your commitment to continued timely payments moving forward. Conclude your letter with a professional closing, such as “Sincerely,” followed by your full name and signature. Maintain a polite, respectful, and apologetic tone throughout the entire letter.

Submitting Your Goodwill Letter

Once your goodwill letter is carefully crafted, you can submit it through various methods. Sending it via certified mail with a return receipt provides proof of delivery, which can be useful for your records. Some creditors may also offer an online secure message portal or allow direct email submission; however, always verify if these electronic methods are permitted for such requests.

After submitting your letter, it is advisable to allow a reasonable timeframe for a response, typically between a few days to a month, or sometimes up to 30 to 45 days. If you do not receive a response within this period, a polite follow-up call or letter may be appropriate. It is also important to monitor your credit report periodically to see if the late payment has been removed.

It is worth noting that success with a goodwill letter is not guaranteed. Creditors are not obligated to remove accurate information from your credit report, even upon request. However, for an isolated incident with an otherwise strong payment history, sending a goodwill letter can be a worthwhile step in managing your credit profile.