Goodwill Letters 101

MoneyTips

After years of spotless credit, let's say you've harmed your excellent credit score by missing a payment. Perhaps you've had an unexpected accident or medical expense that disrupted your payment schedule, or maybe you simply had a brain cramp and forgot to submit your payment on time.

You've made good on the missed payment, along with any late fees – but now you have a black mark on your credit history that will drop your credit score and be a factor in your credit score calculations for up to seven years.

However, you may have an alternative. You can attempt to have the late payment removed from your credit report by sending a goodwill letter to the creditor that reported the missed payment.

A goodwill letter is different from a letter disputing a charge or a payment status. In ...

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