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What is a goodwill letter?
A goodwill letter, sometimes called a late payment removal letter, is a request you send to a creditor asking them to remove a late payment from your credit reports.
Late payments — especially those more than 30 days late — harm your credit score and make it harder to qualify for loans or get good rates. A well-written letter outlining the financial circumstances that caused you to miss a payment could help your score rebound.
In your letter, explain what caused the missed payment and why it won't happen again. Then, ask the creditor to remove the derogatory mark as a gesture of "goodwill" — hence the name.
If the creditor agrees, it could help your score recover sooner. If not, the late payment can stay on your credit reports for up to seven years, though its impact fades over time.
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 and concise
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.
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. However, if you haven't heard back within 30 days from your initial mailing, consider calling or sending another letter
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Do goodwill letters work?
It depends on your circumstances.
Certain banks, such as Chase and Bank of America, say they will not honor late payment removal requests in goodwill letters because they are legally obligated to report a complete history of your financial behavior to each credit bureau. But some consumers have reported success when they've sent a goodwill letter.
Goodwill letters work best if the missed payment was a one-time mistake. Lenders are more likely to forgive one slip-up than a pattern of late payments.
If you're dealing with ongoing money problems, such as job loss or medical debt, ask your lender if it offers a financial hardship program. If it doesn't, you can write a hardship letter explaining your situation. Ask for help in the form of lower interest rates, waived fees or smaller payments.
Free goodwill letter template download
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.
| Date Creditor name & address Subject: Goodwill Removal Request - Account #### Dear [Creditor Name], I’m writing to ask if you would consider removing a late payment from my credit report. I’ve been a customer since [year], and I’ve worked hard to keep my account in good standing. Unfortunately, I missed a payment on [date] due to [brief explanation, such as a temporary hardship or unexpected event like job loss, medical emergency or natural disaster]. Since then, I have made every effort to keep my payments current. Because the late payment is now affecting my credit score and limiting my financial opportunities, I’m hoping you might be willing to make an exception in this case. I understand the importance of making payments on time, and I take full responsibility for this mistake. I value my relationship with [Creditor Name] and appreciate your time and consideration. Thank you for reviewing my request. Sincerely, [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 say 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 suggest 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.
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 at least know 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. Build strong credit habits and find a system for staying on top of future payments.
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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. Set calendar reminders 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
What's the difference between a goodwill letter and a 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.
Are there any risks to mailing a goodwill letter?
No. There are no fees associated with writing a goodwill letter. Sending a letter won’t impact your credit score in any way.
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