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You’ve pulled your credit report and discovered that it records a late payment. If the payment is now up to date — and the account hasn’t gone to a collection agency — you may be able to remove the black mark and salvage your credit score.
Enter: a goodwill adjustment letter. The letter asks your creditor for their compassion and understanding and promises that you’ll do better with your finances in the future.
While your creditor isn’t obliged to accept your request, there are ways to strengthen your case.
A goodwill adjustment letter is a written request to remove a record of late payments from your credit report. In the letter, you’re essentially asking the creditor to empathize with your circumstances and wipe that black mark from your credit report.
The key difference between a goodwill adjustment error and a dispute is that you’re the one who made the mistake. You missed a payment, and your creditor doesn’t owe you anything. You have to make your case and explain why you slipped — maybe you lost your job or had to care for a sick parent — and prove that you can stay on top of your bills.
Typically, people who have experienced financial hardship and can supply a recent record of on-time payments have the most success with goodwill letters. If your account is no longer past due and your debt hasn’t been passed on to a collection agency, you have a good chance, too.
When you’ve written the letter, send it to your creditor using the address on your credit report. More on this soon, but prepare to be persistent and follow up until you get an answer.
A goodwill letter isn’t guaranteed to work, but there are some situations that warrant writing one. Ultimately, the aim is to show intent and attempt. You wanted or planned to pay, but couldn’t for some reason or another.
If these circumstances apply to you, it may be worth penning a letter:
A goodwill letter requires thought and tact. After all, you’re asking for a favor from someone who doesn’t have to grant it.
For a successful goodwill letter, needs to be a physical letter — not an email. Then follow these guidelines:
Account number: [Your account number][Date]
To whom it may concern,
Thank you for taking the time to read this letter. I’m writing because I noticed my most recent credit report reported a late payment on January 2021 for my [name of account] account.
I understand how important it is to make on-time payments and that a failure to do so is a huge inconvenience to you. I missed that payment because my father fell chronically ill, and I had to take unpaid leave to care for him. In addition, I had to withdraw from my savings to pay for his exorbitant healthcare costs.
I realize I made a mistake in falling behind with my payments. Up until that point, my payment history with you was positive, and I’m proud of that. Now that my father is in remission, I’m back at work full time and those payments are a priority. I’m in control of my finances and confident this won’t happen again.
I would be extremely grateful if you could remove the late payment from my credit report. I’m planning to apply for a mortgage, and that blemish could hurt my ability to qualify. Given my history, I don’t believe it reflects my creditworthiness or my standing as a good [name of creditor] customer.
Thank you again for your consideration,[Your name]
For the speediest response, include these documents and details in your letter:
Once you send in the letter, you can expect a response in two to three weeks, though sometimes creditors take much longer — or don’t respond at all.
Your creditor will accept or reject your request for a goodwill adjustment and confirm if they will erase the black mark on your credit report.
If you haven’t heard back within a few weeks, call or email the creditor to check the status of your request. You may have to be persistent and follow up multiple times, particularly if the company uses a customer service team to field calls.
You can also try to schedule an in-person meeting with your creditor. This humanizes your request and gives you a second chance to explain your case.
If you do get in contact with your creditor, reaffirm your loyalty to the company and your history of positive, on-time payments. Emphasize that the missed payment was a one-time occurrence and that you’re back on track with your finances.
Remember, your creditor isn’t obliged to grant you a goodwill adjustment. If you reach a dead end, you can contact the credit bureau in charge of your credit report or enlist the help of a credit repair agency.
The purpose of a goodwill letter is to repair your credit by asking a creditor to remove a late payment from your credit report. It’s not guaranteed to work, but in some situations, it’s worth a try.
If you can explain why you missed the payment and how you’ve recovered from financial hardship, you might be a good candidate for a goodwill adjustment letter. There’s a power in owning up to your mistakes, but know that your creditor isn’t obligated to accept your request.
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