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Late payments on a credit card or loan can have a widespread financial impact beyond triggering late fees and higher interest rates. Payments made more than 30 days past due can ding your credit score, making it harder to qualify for future loans and get good rates.
One possible solution: You may be able to remove late payments on your credit reports and start to improve your credit with a “goodwill letter.”
What is a goodwill letter or late payment removal letter?
In a goodwill letter, sometimes called a late payment removal letter, you ask the creditor that reported your late payments to remove the derogatory mark from your credit reports. Without the "goodwill" of a creditor to remove those marks, they remain on your credit report for seven years — though the impact on your score fades with time.
Your goal is to explain why you missed your payments and why the creditor should wipe them from the report.
Do goodwill letters work?
Certain banks like Chase and Bank of America state that they will not honor a late payment removal letter because they are legally obligated to report a complete history of your financial behavior to each of the credit bureaus. But some consumers have reported success when they've sent a goodwill letter.
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A strong late payment removal letter asks the creditor to empathize with you. It’s pleasant and courteous. It shows that you take responsibility for your missed payments and demonstrates that you’ll stay current on your bills in the future.
It helps if you can point to a specific circ*mstance, or if you can show a recent track record of on-time payments. Keep it short and sweet.
You might consider writing a goodwill letter if you missed one or more payments due to a medical emergency, a divorce, job loss, or a natural disaster. An issue with mail delivery due to a move could be another valid reason to write a goodwill letter.
Once you’ve written the letter, send it to your creditor using the address listed on its website or on your credit report. You might have to contact the creditor multiple times or follow up with a phone call. Persistence may help persuade the creditor.
Goodwill letter template
Here’s a sample goodwill letter for missed payments on a credit card:
[your name]
[your address]
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 that my most recent credit report contains [a late payment/payments] reported on [date/dates] for my [name of account] account.
I want you to know that I understand my financial obligations, and if it weren’t for [circ*mstance that caused you to miss a payment], I’d have an excellent repayment record. I made a mistake in falling behind, but since then, [description of how your circ*mstances have changed or how you’ve improved your money management]. Since then, I’ve had a spotless record of on-time payments.
I’m planning to apply for [a mortgage/auto loan/etc.], and it’s come to my attention that the missed payment on my record could hurt my ability to qualify. I truly believe that it doesn’t reflect my creditworthiness and commitment to repaying my debts. It would help me immensely if you could give me a second chance and make a goodwill adjustment to remove the late [payment/payments] on [date/dates].
Thank you for your consideration, and I hope you’ll approve my request.
A goodwill letter is different from a credit dispute letter. A dispute letter asks the credit bureaus to correct a mistake that was made on your credit reports. These mistakes could include a wrong account number, an account you don’t recognize or a payment reported late when it wasn’t. A goodwill letter asks the original creditor for forgiveness for a mistake you actually made, like missing a payment.
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Writing a goodwill letter may or may not successfully remove a late payment from your reports. Regardless of the outcome, following a few best practices can help you avoid missed payments in the future and protect your credit.
Keep track of payment due dates. Check your statements or log in to your online accounts to verify when payments are due each cycle. Some creditors allow you to change your payment due date, so if yours is inconvenient, ask about making a switch. Consider setting calendar reminders on your phone or computer to alert you as the date approaches.
Make frequent payments. Getting in the habit of making smaller, recurring payments throughout the month can help you knock out your balance before your due date. Carrying a smaller balance also lowers your credit utilization, which is a good way to build your score.
Schedule automatic payments. You can set up regular transfers from your bank account to ensure you pay your bills on time. Aim for at least the minimum payment amount.
I truly believe that it doesn't reflect my creditworthiness and commitment to repaying my debts. It would help me immensely if you could give me a second chance and make a goodwill adjustment to remove the late [payment/payments] on [date/dates]. Thank you for your consideration, and I hope you'll approve my request.
The process is easy: simply write a letter to your creditor explaining why you paid late. Ask them to forgive the late payment and assure them it won't happen again. If they do agree to forgive the late payment, your creditor should adjust your credit report accordingly.
There's no guarantee that a goodwill letter will work, and there's no officially approved formula to follow in order to give yourself the best chance of success. Keep in mind that because creditors aren't required to consider your request, you may get no response at all.
You can only get a late payment removed from your credit report if it was reported in error. To get an incorrect late payment removed from your credit report, you need to file a dispute with the credit bureau that issued the report containing the error.
Section 609 gives consumers the right to request information related to debts listed on their credit reports. Examples of information that you may want to dispute include: Accounts opened due to identity theft. Late payments that were paid on time.
Do goodwill letters work? Your lender is not obligated to honor your goodwill adjustment request or help remove negative marks from your credit report. “It's likely they could say yes; it's likely they could say no, and I think there's an equal chance of either response,” McClary said.
I am sincerely sorry for the delay in payment on {loan type}. I apologize for any inconvenience or frustration this caused you. The delay was caused by {reason}. While I take full responsibility for my mistake, I would like to assure you that this was a one-time error on my part.
Include as many details as you can regarding the payment, such as the invoice number and amount. As always, continue reminding them of when the due date was, and how overdue they are. However, remain helpful—you never know what they could be going through, or if there was some sort of mix-up.
At present, I intend to buy a house. But, due to the negative listings from my past late payments, I am not being able to get a reasonable mortgage rate. So, I humbly request that you remove this negative item from my credit report as a gesture of goodwill. I would sincerely appreciate if you consider my request.
I truly believe that it doesn't reflect my creditworthiness and commitment to repaying my debts. It would help me immensely if you could give me a second chance and make a goodwill adjustment to remove the late [payment/payments] on [date/dates]. Thank you for your consideration, and I hope you'll approve my request.
An example of a goodwill message is a company sending a season's greetings message to its employees. This type of message expresses appreciation for the work that the employees have done throughout the year and makes them feel valued.
The invoice was due on [Due Date], and payment is now overdue by [Number of Days Overdue]. Be advised that late payment interest may be applied if we do not receive payment within 30 days. Let us know when we can expect to receive payment for the outstanding invoice. Please find the outstanding invoice attached.
Dear [Name], Further to my previous correspondence, I am contacting you regarding late payment for invoice [invoice number]. The invoice was due on [due date], and payment is now overdue by [number of days overdue]. Be advised that late payment interest may be applied if we do not receive payment within 30 days.
If you find an incorrect or old late-payment one of your credit reports, you can file a dispute with the credit bureau that issues the report. You can also dispute the mistake with the creditor that sent the information to the bureau, such as the lender, credit card issuer or collections agency.
You can write a goodwill letter to the creditor asking them to remove the charge-off from your credit report. Explain your situation and why they should make an exception for you.
A goodwill letter, sometimes called a forgiveness removal letter, is essentially a letter you write to your creditor that nicely asks for them to remove a negative mark from your credit reports. Writing a goodwill letter to a creditor is fairly easy and is definitely something you can do for DIY credit repair.
A 609 letter template is a form letter that is used to dispute items on a credit report. The letter is sent to the credit reporting agency, and the purpose is to request that the disputed information be removed.
A late payment may remain on your credit report for up to seven years as allowed by the Fair Credit Reporting Act (FCRA). Getting the late payment removed depends on its accuracy. The FCRA is a federal law that gives you the right to dispute inaccurate information that appears on your credit report.
Closed accounts can be removed from your credit report in three main ways: (1) dispute any inaccuracies, (2) write a formal goodwill letter requesting removal or (3) simply wait for the closed accounts to be removed over time.
At present, I intend to buy a house. But, due to the negative listings from my past late payments, I am not being able to get a reasonable mortgage rate. So, I humbly request that you remove this negative item from my credit report as a gesture of goodwill. I would sincerely appreciate if you consider my request.
If you already paid the debt: Ask for a goodwill deletion
There's no guarantee your request will be accepted, but there's no harm in asking. A record of on-time payments since the debt was paid will help your case.
Introduction: My name is Barbera Armstrong, I am a lovely, delightful, cooperative, funny, enchanting, vivacious, tender person who loves writing and wants to share my knowledge and understanding with you.
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