What Is a Goodwill Letter to Creditors?

A goodwill letter is a formal request sent to a creditor to ask for the removal of a negative mark, such as a late payment, from your credit report. This type of letter is typically used when an isolated incident caused the negative mark, and the consumer otherwise maintains a good payment history. It serves as a plea for leniency, acknowledging responsibility for the missed payment but appealing to the creditor’s discretion for an exception.

Understanding a Goodwill Letter

A goodwill letter is a request for a creditor to exercise discretion and remove a negative entry, such as a 30-day late payment, from a consumer’s credit history. This request is not a dispute of factual inaccuracy; rather, it acknowledges the payment was indeed late. It appeals to the creditor’s “goodwill,” often based on a strong prior payment relationship and a history of timely payments with that specific entity.

Creditors are not obligated to grant such requests, as they are generally required to report accurate information to credit bureaus. However, they may choose to make an exception as a gesture of goodwill, especially if the account holder has a long-standing positive relationship. The letter therefore seeks a voluntary adjustment, recognizing the creditor’s authority to make such a change.

When to Write a Goodwill Letter

A goodwill letter is most effective for an isolated, minor late payment. Consumers should consider writing a goodwill letter if they have a consistent history of timely payments with the specific creditor, demonstrating that the late payment was an anomaly.

The letter is also suitable when the late payment was caused by an unusual, explainable circumstance, such as a medical emergency or a temporary financial hardship that has since been resolved. Furthermore, the account should be current and in good standing at the time of the request. Creditors are more likely to consider requests from long-term customers who have shown a strong commitment to their financial obligations.

Key Elements of a Goodwill Letter

Preparing a goodwill letter requires including specific information to ensure it is clear and professional.
Provide your full contact information, including your name, address, phone number, and email.
List the creditor’s name and their complete mailing address.
Include your full account number associated with the late payment.
State the specific date or month the late payment occurred.
Your letter must contain a polite and concise statement requesting the removal of the negative mark from your credit report.
Provide a brief, honest, and non-blaming explanation for the late payment, emphasizing sincerity and brevity.
Highlight your consistent on-time payment history with the creditor.
Maintain a respectful and appreciative tone throughout the letter.
Conclude with a polite closing that asks for their consideration.

Sending Your Goodwill Letter and Awaiting a Response

Once your goodwill letter is carefully prepared, consider the most effective methods for submission. While some creditors may accept requests via secure online message portals or email, traditional mail is often preferred, particularly certified mail with a return receipt for proof of delivery. This provides a clear record of when the letter was sent and received. Check with the creditor for their preferred communication channels for such requests.

Possible outcomes include the creditor agreeing to remove the mark, declining the request, or providing no response at all. If no response is received within a reasonable timeframe, typically a few weeks to a month, a polite follow-up phone call or email may be appropriate to inquire about the status of your request. Regardless of the outcome, it is prudent to regularly monitor your credit report through major credit bureaus (Experian, Equifax, TransUnion) to confirm if the negative mark has been removed, should your request be granted.