What is a Goodwill Letter?
A goodwill letter is simply a letter that explains the reason that you were late on making a payment on one of your credit cards.
Do Goodwill Letters Work?
In short yes they do. But the circumstances have to be just right. If they are, the goodwill letters have a high success rate! We will uncover those circumstances in this article.
Who Do You Send Goodwill Letters to?
Goodwill letters can be sent to your credit card creditors, your auto financing company, your bank, or any other type of lender.
All you have to do is write the letter explaining why you were late on your payment, and that you are asking for them, in essence, to forgive that late payment and remove it from your credit report as a courtesy for you.
And then send the letter off.
Goodwill Letters are also known as goodwill adjustment letters or goodwill forgiveness removal letters.
When you write a goodwill letter, your goal is to ask for forgiveness and in return, the creditor graciously removes the negative mark from your credit reports.
The Good News
The good news is that writing a goodwill letter is a straightforward and simple process, and is something you can do on your own to help improve your credit and increase your score.
The other good news is that it actually sometimes works!
But you got to know exactly how to go about it to increase your chances. And we help you with that right here!
If there is a late payment on your credit report, and you write a goodwill letter with good reason, you have a good chance of getting it removed if you have a good past history with the creditor.
Having a good bond with creditors will certainly improve your chances. If you’ve been a pretty responsible borrower who has actually missed a payment due to an error, medical emergency, or short-term potential financial situation beyond your control, most creditors will be understanding.
So again, you will have the best chance of removing a negative mark with the help of a goodwill letter if your relationship with the creditor is good.
The Bad News
Writing a goodwill letter doesn’t always work.
If you have made more than one late payment in the previous year, your chances of a late negative mark removed are reduced dramatically.
If you are habitually late, then creditors obviously won’t be willing to remove the negative marks from your credit report.
They will most likely go soft pull on your credit and if they see that you’ve been late with other creditors recently, your chances of using the Goodwill letters strategy diminishes exponentially.
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