Goodwill Letter for Credit Report: Does It Work?

A goodwill letter asks creditors to remove negative marks from your credit report. These letters work best after one-time mistakes when your account is otherwise strong. They’re free to send but don’t always succeed. You’ll learn when goodwill letters work, how to write one, and what to do if declined. We’ll also cover other credit repair tools like dispute letters and pay-for-delete offers.

What Is a Goodwill Letter?

A goodwill letter is a written request to your creditor or lender. You ask them to remove a negative item from your credit report.

Rebuild Your Credit Score While You Wait

If your goodwill letter is declined, don't wait seven years for negative marks to disappear. Start building positive credit history today with proven credit-building tools.

Improve Your Score

Most people send these letters after a one-time mistake or unexpected hardship. The account needs to be in good standing otherwise.

You’re connecting with the creditor as a person. You explain what happened and ask for understanding.

A well-written letter may help, especially with responsible payment history. Some creditors make goodwill adjustments when the issue was temporary.

But creditors don’t have to agree. The Fair Credit Reporting Act requires them to report accurate information. Our partner Kikoff can help you build positive credit history alongside your goodwill efforts.

When Should You Send a Goodwill Letter?

You’re a good candidate if you usually pay on time. You should only have one or two negative marks.

Use goodwill letters sparingly for the best results.

Multiple late payments make goodwill letters less effective. But a one-time mistake with good history since? Worth trying.

How to Write a Goodwill Letter

Keep your letter simple and concise. Include these account details:

Your name and address
The account number
The debt amount

Creditors can quickly find your account with this information.

Explain briefly why you missed the payment. Maybe you lost your job, had a medical emergency, or faced financial hardship.

Provide context about what led to the negative mark. Show the creditor your circumstances have improved.

Explain the positive changes you’ve made. Tell them how you’ll avoid the same mistake.

Describe how the negative mark affects you now. Maybe you’re struggling to get a mortgage or refinance a loan.

Explain the impact briefly, then ask politely for removal.

Tips for Writing an Effective Goodwill Letter

Follow these tips for better results:

Accept full responsibility for your mistake
Keep the tone humble and polite
Avoid harsh language or blaming others

Send your letter to the company furnishing the information. Don’t send it to the credit bureau itself.

Free Goodwill Letter Template

Use this sample goodwill letter as a starting point. Personalize the bolded items for your situation.

[First Name Last Name]

[Your Address]

[City, State ZIP code]

[Date]

[Creditor Name]

[Creditor Address]

[City, State ZIP code]

Account number: [ABC-123456789]

Reference number: [XYZ-123456789]

Amount of debt: $[1,234.56]

To whom it may concern:

Thank you for considering my goodwill request. I’m writing to address [a late payment(s)/a missed payment(s)] on my [name of account] account. I saw a negative mark on my recent credit report. I’d like to ask you to remove it.

Before the [late payment(s)/missed payment(s)], I had an excellent payment record. I know I need to make prompt payments on my [name of account] account. I’ll stay on top of things from here on out. I [made a late payment(s)/missed a payment(s)] because of [circumstances that show your hardship or negative change]. It won’t happen again.

I’ve taken steps to address [hardship circumstances/negative change] by [list steps or changes you’ve made to improve things].

I’m hoping to [state your next financial goal: apply for or refinance a mortgage/get a car loan/consolidate debt/refinance student loans/etc.]. The negative mark on my credit report may disqualify me. I’m committed to paying back amounts I borrow. It was a one-time mistake. I would be incredibly thankful for a second chance and a goodwill adjustment to remove the [late payment(s)/missed payment(s)] from [date/dates].

Thanks again for your time and consideration.

Best regards,

[First Name Last Name]

How Effective Are Goodwill Letters?

Goodwill letters don’t always work. In fact, they often don’t.

But many people send them anyway. There’s no cost and the potential payoff is big.

Goodwill letters are more likely to work if:

You’ve only missed one or two payments
You made on-time payments before and after the mistake
You had a temporary hardship like job loss or medical emergency
Your account is still open and in good standing
You have a good relationship with the creditor

They’re less likely to work if:

You’ve missed multiple payments
Your account was charged off or sent to collections
You regularly pay late or have other negative marks
The creditor has a strict no-exceptions policy

Smaller lenders and credit unions often show more flexibility. Larger banks follow stricter reporting rules.

Some people send their letter by certified mail for delivery confirmation.

Why Goodwill Letters Don’t Always Work

Goodwill letters are common credit repair tools without guaranteed results. Creditors must follow rules when reporting to credit bureaus.

The Fair Credit Reporting Act requires accurate reporting. Even negative information must be reported accurately.

Removing accurate information could cause legal trouble for creditors. Many decline goodwill adjustments for this reason.

But people still send them. They’re low risk, free, and sometimes work. Especially when the account is otherwise strong.

What to Do if Your Goodwill Letter Is Declined

Don’t get discouraged by rejection. Many goodwill letters don’t get the hoped-for response.

You can still take steps to improve your credit:

✅ Keep making on-time payments. Positive payment history rebuilds your credit powerfully.

✅ Use credit-building tools. Our partner Kikoff offers secured credit cards and credit-builder loans. Use them responsibly to rebuild your score.

✅ Check myFICO message boards. You’ll find real stories from others who sent goodwill letters. Learn what language worked with specific creditors.

✅ Be patient. Most negative marks fall off after seven years. Their impact fades over time.

Sending a goodwill request shows you’re actively working to improve. Every step in that direction matters.

Can a Goodwill Letter Remove Bankruptcy Filings?

No. Bankruptcy filings are public record. Goodwill letters won’t remove public record items from your credit report.

Credit bureaus routinely check PACER for bankruptcy filings. Creditors don’t provide bankruptcy information to credit bureaus.

Credit bureaus will ignore goodwill letters about bankruptcy filings. There’s no way to remove bankruptcy with a goodwill letter.

Creditors agreed not to report some public records. Liens and court judgments aren’t reported under the National Consumer Assistance Plan.

The NCAP isn’t federal law, so it could change. But even if liens and judgments were reported, goodwill letters wouldn’t remove them.

You need to wait for those items to fall off your credit report.

Alternatives to Goodwill Letters for Credit Repair

Goodwill letters aren’t your only credit repair tool. Pay-for-delete letters work better for collections, repossessions, or charge-offs.

Credit dispute letters are right when information is simply wrong.

Each tool has a different purpose:

Goodwill letters ask for forgiveness
Credit dispute letters challenge mistakes
Pay-for-delete letters offer payment for deletion

Knowing when to use each helps you take the best next step. Rebuilding with on-time payments and low balances makes a big difference.

Credit Dispute Letters: Best for Inaccurate Information

Found wrong information on your credit report? Use a credit dispute letter to report and remove it.

Information to dispute when incorrect:

Late payments that were actually on time
Accounts that don’t belong to you
Balances already paid but showing as unpaid

Many people dispute errors from reporting mistakes, identity theft, or fraud. File disputes directly with credit bureaus (Experian, Equifax, TransUnion).

They’re required by law to investigate your claims.

Check your credit reports regularly. Get a free copy from AnnualCreditReport.com every week.

Read more in our guide: Credit Dispute Letters: What They Are & How They Work.

Pay-for-Delete Letters: Best for Collections You’ll Pay Off

A pay-for-delete letter offers payment to a collection agency. You pay the debt (in full or part) in exchange for removal.

Things to know:

Not all collectors agree to this arrangement
Credit bureaus discourage the practice
You may not be able to enforce it if they don’t follow through
Always get the agreement in writing before paying

Even if marked as “paid” instead of removed, settling reduces negative impact. Learn more about pay-for-delete letter effectiveness.

Frequently Asked Questions

What is a goodwill letter for credit repair?

A goodwill letter is a written request to your creditor asking them to remove a negative item from your credit report as an act of goodwill. You explain the circumstances that led to a late or missed payment and ask for a second chance, especially if you have an otherwise strong payment history.

How do I write an effective goodwill letter?

Include your account details, accept full responsibility for the mistake, and briefly explain what caused the late payment. Keep the tone humble and polite, describe how your circumstances have improved, and explain how the negative mark affects your financial goals. Send your letter to the creditor that furnished the information, not the credit bureau.

Can goodwill letters remove bankruptcy from my credit report?

No. Bankruptcy filings are public records that credit bureaus check directly through the PACER database. Goodwill letters cannot remove public record items like bankruptcies, liens, or court judgments from your credit report. You must wait for these items to fall off naturally after the legally required time period.

What should I do if my goodwill letter is declined?

Keep making on-time payments to build positive credit history. Consider using credit-building tools like secured credit cards or credit-builder loans. Check your credit reports regularly for errors to dispute. Be patient, as most negative marks fall off after seven years and their impact fades over time.

How effective are goodwill letters for improving credit scores?

Goodwill letters don't always work, but they're worth trying since they're free. They're more effective if you've only missed one or two payments, have a good relationship with the creditor, had a temporary hardship, and your account is otherwise in good standing. Smaller lenders and credit unions are often more flexible than large national banks.

Can a Goodwill Letter Help Improve Your Credit Score?