How to Use a Goodwill Letter to Remove a Late Payment

A single late payment on your credit report can drop your credit score and stay there for seven years. It’s a frustrating situation, especially if it was a one-time mistake. Fortunately, you have a powerful tool at your disposal: a goodwill letter.

A goodwill letter is a polite request sent to a creditor asking them to remove a negative mark from your credit report as an act of goodwill. It’s not a legal dispute; it’s an appeal to your positive history as a customer.

When Should You Send a Goodwill Letter?

Goodwill letters are most effective under specific circumstances. You have the best chance of success if:

You have a strong payment history. If you’ve been a loyal customer for years and this was your first and only slip-up, the creditor is more likely to help.
The late payment was a genuine mistake. Did you miss a payment because of a medical emergency, a technical glitch with autopay, or a change of address? Explaining the situation honestly can make a big difference.
The account is now current. Before you ask for forgiveness, make sure your account is paid up and in good standing.

5 Tips for Writing an Effective Goodwill Letter

Be Polite and Respectful. Remember, you are asking for a favor. A friendly and humble tone will get you much further than an angry or demanding one.
Take Responsibility. Acknowledge the late payment and take responsibility for it. Don't make excuses, but briefly and honestly explain the circumstances that led to the mistake.
Highlight Your Loyalty. Remind them how long you've been a customer and emphasize your otherwise excellent payment record.
Keep It Short and to the Point. Creditors are busy. A concise, one-page letter is more likely to be read than a long, rambling story.
Send It to the Right Place. While you can send it to the general customer service address, you may have more success sending it to a specific executive office or "credit bureau disputes" department.

Sending a goodwill letter doesn't guarantee success, but it's a simple, no-cost step that can have a huge positive impact on your credit score.

Ready to write your own? Click the button in the footer to use our free goodwill letter template!