How to Write a Goodwill Letter (Plus Free Template)

Often, when money and debt are involved, tensions run high, and we forget that ultimately we’re just dealing with people like us.

lady crossing her fingers

One of the most effective ways to improve your credit score is by simply explaining your situation and asking for a bit of kindness by writing a goodwill letter.

What is a goodwill letter?

A goodwill letter is a type of letter that a borrower can write to a lender to request an adjustment to their credit report. The letter requests that the lender remove negative information from the borrower’s credit report or to adjust the terms of their loan.

For example, let’s say you have a negative mark on a credit report with an account that has not gone to a collection agency. If the missed payment is now up-to-date, you can ask your creditor to contact the three credit bureaus to remove the late payment from your credit report.

Creditors are not obligated to remove accurate information from your credit report. However, some companies want to satisfy their customers. Therefore, it’s in their best interest to ensure that you remain a customer.

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Do goodwill letters work?

Absolutely. Many people have successfully used goodwill letters to remove late payments and other negative items from their credit reports. However, there’s no guarantee that a goodwill letter will remove late payments from your credit report.

In fact, some banks have stated publicly that they ignore goodwill letters. For example, Bank of America says on their website that they’re “required to report complete and accurate information” so they won’t honor requests for goodwill adjustments.

If your bank feels the same way, maybe it’s time to switch to a bank that values your business more? Nevertheless, you have nothing to lose by writing goodwill letters except a few minutes of your time.

When to Use a Goodwill Letter

There are several situations where you’ll have the best chance of receiving a positive response from your creditor.

For example, suppose you tried to make your payment on time but encountered a technical error (especially if it happened on the creditor’s end). In that case, you’re a suitable candidate for a goodwill adjustment. Perhaps their website was down, or the phone line was busy for an unreasonably long time.

You can also try a goodwill forgiveness removal letter if your autopay didn’t work for some reason. Even if your bank account had insufficient funds, you could certainly ask and just explain why your funds were low. Perhaps a check took longer to deposit than you expected, or you had an emergency expense pop up.

Lastly, if you missed a payment but are otherwise a good customer making timely payments, a goodwill letter can still be used to request removal.

Ultimately, you’re still a paying customer. Many creditors appreciate the fact that they depend on people like you to keep their businesses running.

How to Write a Goodwill Letter

When writing a goodwill letter, it is important to clearly explain the issue and the reason for the request. You should also include any details of your current financial situation that might be relevant. Be sure to be polite and professional when writing the letter.

  1. Be courteous. Put yourself in the company’s position and ask how you would like to be treated. Remember that the company has provided you with a service and thank them for that.
  2. Acknowledge your fault in the late payments and explain the circumstances that prevented you from making those payments.
  3. If you need a good credit score for a specific reason, such as a mortgage or auto loan, include it.
  4. Again, be friendly. Thank them for their time and offer to answer any questions they have.

Using goodwill letter templates, many people have been able to get late payments, missed payments, or other negative marks removed from their credit reports. You have a strong chance of doing the same if your credit account is no longer past due. That is, as long as the debt hasn’t been passed on to a collection agency.

Below is a free goodwill letter template designed to remove late payments from your credit report.

Goodwill Letter Template

Note: This goodwill letter template does not have to be used for a credit card issuer. You can use it for any negative credit accounts on your credit report. However, you may want to dispute the account with the credit bureaus before attempting a goodwill letter.

Sample Goodwill Letter Template


Attn: {Company}
{Company Address}

Re: {Account Number}

To Whom It May Concern,

I am writing concerning my experience with {company name} that is both a grateful “thank-you” and a pressing request concerning my account.

I received my {credit card issuer} credit card on {date you received card} and took pride in the fact that I routinely made all my payments on time. Unfortunately, in {whenever late payment was made}, I {reason you were late}.

I did use what little vacation and sick time I had to cover our living expenses, but needless to say, this left us experiencing financial hardship. Concessions had to be made, and regretfully, this led to a late payment on my credit report.

Since that incident, I have learned the essential organizational and financial management skills I needed at that point, and my payment history from {date} reflects that. I wish to thank you for your renewed confidence in me and for giving me a second chance at a positive relationship with {creditor}, one that I am determined to keep untarnished.

My wife and I are about to begin the process of purchasing a new home. It has come to my attention that the late payment on my credit report from {creditor} may prevent me from taking full advantage of the best interest rates available.

Since that late payment does not reflect my current status with your company, I’m requesting that you please give me a second chance at a positive credit history by revising those tradelines. I sincerely hope that there is redemption at {creditor}, and I would like to ask for such consideration.

If any additional documentation would assist in reaching a positive outcome, please feel free to contact me.

I thank you again for the time you have spent reading this correspondence.

Very hopefully yours,

{Your name}

What makes a convincing goodwill letter?

When receiving a goodwill letter, your creditor will consider how long you’ve been a customer. Your chances are better if you have a long relationship and have generally made payments on time. However, it may not be as easy for new customers or someone who has multiple late payments.

You’re also more likely to have the late payment removed from your credit report if it happened a while ago. That’s because you’ve had time to prove that it was just a one-time occurrence rather than an ongoing financial issue.

If you’ve already requested a goodwill adjustment from the same creditor, particularly within the last two years, they’re less likely to remove the late payment.

It’s essential to get the lender’s attention by crafting an emotional plea. You need to make your goodwill letter as compelling as possible to get them to take favorable action.

Good Reasons for Writing a Goodwill Letter

Here are some other good reasons for late or missed payments that you can include in your goodwill adjustment letter.

Getting Laid Off

If you’ve been laid off from your job, and it has affected your finances, that’s something you may want to include in your letter.

Your letter will be even more convincing if you’re able to mention any dependents you had to take care of during the hard times you encountered.

A Recent Divorce

If you’ve recently gone through a divorce, you know it can be very stressful. It can also have a negative impact on your finances. This is something you may want to include in your letter if it impacted your ability to pay your bills.

A Birth or Death in the Family

These are both major life events that can come with financial hardship. And sometimes they can happen unexpectedly. Creditors are people too, and they can certainly understand what you’ve gone through.

A Recent Illness

If you or a loved one has recently been hospitalized, you know how time-consuming and financially draining it can be. Medical bills can throw off your budget and make it challenging to meet your financial obligations. This is something you can mention in your letter if you’ve experienced it.

A Recent Move

Have you recently moved? Whether you’ve moved across town or across the country, you know that moving can be overwhelming. Your mail may not have been forwarded to your new address. This is something you can explain in your letter to your creditors.

After You Send a Goodwill Letter

Once your goodwill letter is sent in the mail, there’s nothing left to do but wait. You may hear back from your creditor in as little as one to two weeks, which is an optimal situation. However, it may take longer than that, and some may never respond.

You can always call customer service to ask about the status of your request after a few weeks of waiting. You can determine how strong your case is by reviewing a few simple points about your account.

If you’re not having any luck with goodwill adjustment letters or if you have numerous negative items on your credit reports, contact one of our top-rated credit repair companies for help. Credit repair services like Credit Saint have many years of experience. They have helped many clients raise their credit scores by removing negative items from their credit reports.

Frequently Asked Questions

What should I include in my goodwill letter?

You should include the following details in your goodwill letter: the date of the request, the name of the lender, the account number, the negative information you would like to have removed, and any relevant details of your current financial status.

How long should a goodwill letter be?

A goodwill letter should be concise and to the point, generally no longer than one page. The goal is to clearly communicate your request without overwhelming the reader with unnecessary details.

What are the chances of a goodwill letter being successful?

The success of a goodwill adjustment letter depends on the lender and their policies. Some lenders may be more willing to work with borrowers than others.

How long does it take for a goodwill letter to be processed?

The time it takes for a goodwill letter to be processed can vary depending on the lender. Generally, it can take up to 30 days for the lender to review the request and make a decision.

Are there any other options to help improve my credit score?

Yes, in addition to goodwill letters, there are other options that you can use to help improve your credit score. These options include paying off any outstanding debts, disputing any errors on your credit report, and making on-time payments.

Check out our DIY credit repair guide for more ways to repair your credit.

What happens if the lender denies my request?

If the lender denies your request, you may need to look into other options. Depending on the situation, you may be able to challenge the late payment with the credit bureaus by writing a dispute letter. However, credit dispute letters are typically used to dispute negative items that are inaccurate.

Can I hire a professional to write a goodwill letter for me?

Yes, you can hire a credit repair company or a professional writer to help you draft a goodwill letter. However, it’s essential to ensure that the letter remains personal and genuinely reflects your circumstances and efforts to secure a better financial future.