Can a Goodwill Letter Help My Credit Score?

What Is a Goodwill Letter?

A goodwill letter is a written request sent to a creditor or lender asking them to remove negative information (such as a late payment) from your credit report as an act of goodwill. It's typically used when the negative mark was due to a one-time mistake or circumstance and when the account is otherwise in good standing. 

A well-written goodwill letter can sometimes lead to a positive outcome, but creditors don’t have to honor these requests. In fact, federal laws require that creditors report accurate credit information to the major credit bureaus — Experian, Equifax, and TransUnion — including late or missed payments.

When Is a Goodwill Letter a Good Idea?

Goodwill letters work best when used sparingly and only in certain circumstances. If you have a good payment history with  on-time payments and only have one or two dings on your credit report, you may be a good candidate to write a goodwill letter. 

It’s important to acknowledge your misstep in the letter and provide a short explanation for why you missed or were late on a payment. Perhaps you lost your job, had sudden medical bills, or experienced another financial hardship. You can also talk about how the negative impact on your credit score is affecting you. Maybe you were denied new credit or are being subject to high interest rates. A goodwill letter attempts to connect with creditors on an emotional level, not just a dollars and cents, debtor-creditor level.

Note that if you have multiple derogatory marks on your credit report and you routinely make late payments or miss payments, a goodwill letter is unlikely to help.

Free Goodwill Letter Template

Below is a sample goodwill letter. Feel free to make changes to this goodwill letter template to fit your unique situation. Personalize the items in bold.

[First Name Last Name]

[Your Address]

[City, State ZIP code]

[Date]

[Creditor Name]

[Creditor Address]

[City, State ZIP code]

Account number: [ABC-123456789]

Reference number: [XYZ-123456789]

Amount of debt: $[1,234.56]

To whom it may concern:

Thank you in advance for your understanding and consideration of my goodwill request in this letter. The purpose of this letter is to address [a late payment(s)/a missed payment(s)] on my [name of account] account. I saw that there was a negative mark on my most recent credit report, and I’d like to ask you to remove it.

Prior to the [late payment(s)/missed payment(s)], I had an excellent track record of making timely payments. I know that I need to make prompt payments on my [name of account] account, and I will make sure that I stay on top of things from here on out. I [made a late payment(s)/missed a payment(s)] because of [circumstances that show your hardship or negative change of circumstances]. This won’t happen again.

I’ve taken steps to address [hardship circumstances/negative change of circumstances] by [list steps or changes you’ve made to make things better and more positive].

I’m hoping to [state the next financial move you’d like to make — apply for or refinance a mortgage/get a car loan/consolidate your debt/refinance student loans/etc]. The negative mark on my recent credit report may disqualify me from taking this next step. I am committed to paying back the amounts I borrow, and this was a one-time slipup on my part. I would be incredibly thankful if you were to give me a second chance and make a goodwill adjustment to remove the [late payment(s)/missed payment(s)] from [date/dates].

Thanks again for your time and consideration.

Best regards,

[First Name Last Name]

How To Write a Goodwill Letter

Your letter should be simple and concise. Be sure to identify the collection account for the creditor, including: 

• Your name and address

• The account number

• The amount of the debt

This helps the creditor quickly find your information so they can review your account.

The body of your goodwill letter should include a brief explanation of why you missed a payment or provided a late payment. For example, maybe you’ve experienced job loss, had a medical emergency, or experienced a significant negative change in your finances.

Provide some context about the events leading up to the negative mark on your credit report. Then let the creditor know that the circumstances that were negatively affecting you have improved. Tell them you’ve gotten back on your feet or made positive changes that will help you avoid making the same mistake in the future.

It’s also important to explain what problems the negative item on your credit report has caused. Maybe you’re having a hard time getting a mortgage, refinancing a loan at a lower interest rate, or getting an auto loan. Briefly explain the impact of the negative item on your credit report, and then nicely ask to have it removed.

Tips for Writing an Effective Goodwill Letter

Here are some tips for writing an effective goodwill letter:

• Acknowledge and accept full responsibility for your slip-up.

• Keep the tone humble, polite, and personable. 

• Avoid using harsh language or passing the blame onto others.

Remember to send your goodwill letter to the company that is providing or furnishing the negative information to the credit bureau, not the credit bureau itself.

Why Don’t Goodwill Letters Always Work?

These letters don’t often work because creditors have to follow certain laws. For example, the Fair Credit Reporting Act (FCRA) requires lenders to report accurate credit information to the credit bureaus. If a creditor removes accurate information that they’re required to report under the FCRA, the creditor may be violating the law and can face serious penalties.

Can a Goodwill Letter Help You Remove a Bankruptcy Filing From Your Credit Report?

No. Bankruptcy filings are public record. Generally speaking, goodwill letters won’t work to remove public record items that show up on your credit report. Credit bureaus routinely check the public record database PACER for bankruptcy filings. 

Creditors or collection agencies don’t provide bankruptcy information to the credit bureaus, and credit bureaus will disregard or ignore any goodwill letters asking them to remove previous bankruptcy filings. So there’s really no recourse for removing a bankruptcy filing from your credit report with a goodwill letter.

Creditors have agreed not to report some public record items, like liens and court judgments, to the credit bureaus. This agreement falls under the National Consumer Assistance Plan (NCAP). 

Since the NCAP isn’t a federal law, this agreement could change at any time. But like bankruptcies, if liens and judgments did start being reported to the credit bureaus, writing a goodwill letter would not be an effective way to get these removed. Instead, you need to wait for those items to fall off your credit report.

Is a Goodwill Letter the Same as a Credit Dispute Letter?

No. A goodwill letter asks a creditor to remove accurate information from your credit report. If you find inaccurate information on your credit report, you can send a credit dispute letter to the credit bureau reporting the information. 

Credit reporting errors are more common than you might think! You can now access a free credit report weekly. It’s a good idea to regularly check your credit reports from all three of the major bureaus. If you find inaccurate information on any of the reports, you have the right to dispute the information. This is often an easy way to help boost your credit score and is a good credit repair technique. To learn more, read Credit Dispute Letters: What They Are & How They Work.

Is a Goodwill Letter the Same as a Pay-for-Delete Letter?

No. A pay-for-delete letter is typically used as a bargaining tool. You can write such a letter asking the creditor or debt collector to delete a negative item from your credit history in exchange for paying off the associated debt.

Both types of letters do have one thing in common: Neither has a high success rate.

Let’s Summarize…

Goodwill letters describe what life circumstances kept you from making a payment on time or caused you to miss a payment. They include a kind request to the creditor or collection agency to remove the resulting negative mark on your credit report. Though these letters rarely work, they’re still worth a try. But it’s best to keep your expectations low.