Definition
A goodwill letter is a written request sent to a creditor or lender asking them to remove negative information, typically a late payment, from your credit report as an act of goodwill. Unlike credit disputes, which challenge the accuracy of information, goodwill letters acknowledge that the negative information is correct but appeal to the creditor's compassion by explaining the circumstances that led to the late payment, such as a medical emergency, job loss, or simple oversight. Goodwill letters work best when you have an otherwise positive payment history with the creditor, have since brought the account current, and can demonstrate that the late payment was due to unusual circumstances beyond your control. While creditors are not obligated to remove accurate negative information, some may be willing to do so to maintain a good relationship with a valuable customer.
Frequently Asked Questions
How do I write an effective goodwill letter?
An effective goodwill letter should: (1) Be addressed to the right department (usually customer service or credit reporting); (2) Include your account number and identifying information; (3) Be polite, concise, and grateful; (4) Acknowledge responsibility for the late payment; (5) Explain the specific hardship or circumstance that caused the late payment; (6) Highlight your good payment history before and after the incident; (7) Explain how the negative mark is affecting your goals (like buying a home); (8) Specifically request removal of the late payment as a one-time courtesy; and (9) Thank them for considering your request. Handwritten letters may receive more attention than typed or form letters.
Which creditors are most likely to accept goodwill letters?
Credit card companies and major banks are generally more receptive to goodwill letters than other types of creditors, especially if you've been a long-term customer with an otherwise excellent payment history. Original creditors are typically more likely to respond positively than collection agencies. Companies with strong customer service reputations may also be more willing to accommodate goodwill requests. The most important factor is your relationship with the creditor—if you've been a reliable customer for years with just a single slip-up, your chances are better than if you have multiple late payments or a short history with the company.
What should I do if my goodwill letter is denied?
If your first goodwill letter is denied: (1) Wait a few months before trying again, as different representatives may review subsequent requests; (2) Try calling the creditor's customer service department directly, as a sympathetic representative might help over the phone; (3) Escalate your request to a supervisor or the executive customer service team; (4) Provide additional documentation of the hardship if applicable; (5) Consider whether you have leverage as a valuable customer (e.g., multiple accounts or services with the company) that you can mention respectfully; or (6) Accept the negative mark and focus on building positive credit history going forward, as the impact of late payments diminishes over time.
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