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What is a goodwill 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.
Late payments on a credit card or loan can have a widespread effect beyond late fees and higher interest rates. Payments made more than 30 days late can ding your credit score, making it harder to qualify for future loans and get good rates. A well-written letter outlining the financial circumstances that caused you to miss a payment could help your score rebound.
Without the "goodwill" of a creditor to remove those marks, they remain on your credit report for seven years — though the negative effect 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?
It depends on your circumstances.
Certain banks, such as Chase and Bank of America, say 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.
It should be noted that goodwill letters are most successful when the financial mistake is rare. In other words, the lender is more likely to forgive and erase one missed payment out of hundreds rather than many missed payments. If you’re experiencing chronic financial hardship, including long-term unemployment, medical debt or other major financial events, check to see if your lender offers a financial hardship program and if you qualify.
If your lender does not have a financial hardship program, you can still request reprieve from your financial obligations by writing a financial hardship letter detailing your circumstances and proposing a mutually beneficial solution. This may include a request for a reduced interest rate, waiving late fees or adjusting your payment amount.
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How to write a goodwill letter
Be courteous
A strong goodwill letter asks the creditor to empathize with you. It’s pleasant and polite. It shows that you take responsibility for your missed payments and promises to stay current on your bills in the future.
Be specific about your circumstances
It helps if you can point to an event, such as a medical emergency, 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.
It also helps if you can show a recent track record of on-time payments. Keep it short and sweet.
Be persistent with your follow-up
Once you’ve written the letter, send it using certified mail to your creditor using the address listed on its website or on your credit report. This mailing method will give you confirmation that the lender received your letter. 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. You can also download this template and edit it with your specific details.
| [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 [circumstance 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 circumstances 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. Best, [your name] |
Need more accessible options?
If English isn’t your first language, you might be able to request free translation services from your bank or lender.
If you have a disability that makes writing or sending a goodwill letter a challenge, consider:
- Checking to see if your bank or lender has an accessibility phone line.
- Contacting client services to request communications be sent by email, if using the postal system presents a challenge.
- Utilizing TDD/TYY relay services.
Tips and tricks from Reddit
We sifted through Reddit forums to get a pulse check on how users feel about goodwill letters. We used an AI tool to help analyze the feedback. People post anonymously, so we cannot confirm their individual experiences or circumstances.
Redditors report mixed success with goodwill letters to creditors, however some claim credit score boosts of 40–50 points. While many note there’s little risk in trying, results can take time — often three to six months of repeated attempts, and in some cases up to a year.
The so-called “Goodwill Saturation Technique” is frequently mentioned, referring to sending multiple goodwill requests to a creditor in hopes of removing negative marks from a credit report.
Reddit users share best practices, such as sending multiple letters over time, explaining personal circumstances, accepting responsibility, and keeping the tone polite and professional. Demonstrating better financial habits since the negative mark also helps show creditors you’re making lasting improvements.
Goodwill letter vs. credit dispute letter
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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See the full picture: savings, debt, investments and more. Smarter money moves start in our app.How to avoid late payments
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 — or the amount of available credit you're using at a given time — 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.
Frequently Asked Questions
How long does it take for a lender to respond to a goodwill letter?
There’s no firm answer to this question. In fact, lenders aren’t obligated to respond to a goodwill letter at all. However, if you haven't heard back within 30 days from your initial mailing, consider calling or sending another letter.
What if a lender rejects my goodwill letter request?
Lenders are within their rights to keep your missed payment on their records. While it might be disappointing to hear “no” from the lender, you can feel good knowing you did everything in your power to fix your mistake. While your missed payment will age off of your account in seven years, the good news is that the impact will fade over time. Focus on what you can control: building strong credit habits and finding a system for staying on top of future payments.
Are there any risks to mailing a goodwill letter?
No. There are no fees associated with writing a goodwill letter, and simply sending a letter won’t impact your credit score in any way.
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