Missed a Payment? Try Writing a Goodwill Letter to Remove It From Credit Reports

A goodwill letter explains why you had a late payment and asks the creditor to take it off your credit reports.

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Kathy Hinson
Lead Assigning Editor | Personal finance, credit scoring, debt and money management

Kathy Hinson is a former Lead Assigning Editor for the Core Personal Finance team at NerdWallet. Previously, she spent 18 years at The Oregonian in Portland in roles including copy desk chief and team leader for design and editing. Prior experience includes news and copy editing for several Southern California newspapers, including the Los Angeles Times. She earned a bachelor’s degree in journalism and mass communications from the University of Iowa.

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Late payments on a credit card or loan can have a widespread financial impact beyond triggering late fees and higher interest rates. Payments made more than 30 days past due can ding your credit score , making it harder to qualify for future loans and get good rates.

One possible solution: You may be able to remove late payments on your credit reports and start to improve your credit with a “goodwill letter.”

What is a goodwill letter or late payment removal letter?

In a goodwill letter, sometimes called a late payment removal letter, you ask the creditor that reported your late payments to remove the derogatory mark from your credit reports. Without the "goodwill" of a creditor to remove those marks, they remain on your credit report for seven years — though the impact on your score fades with time.

Your goal is to explain why you missed your payments and why the creditor should wipe them from the report.

Do goodwill letters work?

Certain banks like Chase and Bank of America state that they will not honor a late payment removal letter because they are legally obligated to report a complete history of your financial behavior to each of the credit bureaus. But some consumers have reported success when they've sent a goodwill letter.

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How to write a late payment removal letter

A strong late payment removal letter asks the creditor to empathize with you. It’s pleasant and courteous. It shows that you take responsibility for your missed payments and demonstrates that you’ll stay current on your bills in the future.

It helps if you can point to a specific circumstance, or if you can show a recent track record of on-time payments. Keep it short and sweet.

You might consider writing a goodwill letter if you missed one or more payments due to a medical emergency, a 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.

Once you’ve written the letter, send it to your creditor using the address listed on its website or on your credit report . You might have to contact the creditor multiple times or follow up with a phone call. Persistence may help persuade the creditor.

Goodwill letter template

Here’s a sample goodwill letter for missed payments on a credit card:

Account Number: [your account number]

To Whom It May Concern:

Thank you for taking the time to read this letter. I’m writing because I noticed that my most recent credit report contains [a late payment/payments] reported on [date/dates] for my [name of account] account.

I want you to know that I understand my financial obligations, and if it weren’t for [circumstance that caused you to miss a payment], I’d have an excellent repayment record. I made a mistake in falling behind, but since then, [description of how your circumstances have changed or how you’ve improved your money management]. Since then, I’ve had a spotless record of on-time payments.

I’m planning to apply for [a mortgage/auto loan/etc.], and it’s come to my attention that the missed payment on my record could hurt my ability to qualify. I truly believe that it doesn’t reflect my creditworthiness and commitment to repaying my debts. It would help me immensely if you could give me a second chance and make a goodwill adjustment to remove the late [payment/payments] on [date/dates].

Thank you for your consideration, and I hope you’ll approve my request.

Goodwill letter vs. 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.

Tips for avoiding 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. Consider setting calendar reminders on your phone or computer 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 , 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.

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