How to Write a Goodwill Letter + Free Template

A single late payment can tank your credit score—but it doesn’t have to stay there forever.

A goodwill letter could convince your creditor to remove a negative mark. It’s simple, free, and worth a shot—especially if you normally pay on time and just slipped up once.

In this guide, we’ll explain what a goodwill letter is, how it works, and how to write one that gives you the best chance of getting a late payment removed from your credit report.

What Is a Goodwill Letter?

A goodwill letter is a short written request you send to a creditor or lender asking them to remove a late payment or other negative item from your credit report. You’re not disputing an error—you’re acknowledging that the late payment happened but asking for leniency.

Creditors may agree to delete a negative mark as a gesture of goodwill, especially if you’ve had a solid payment history and the issue was a one-time mistake.

Definition and Purpose

A goodwill letter is a polite appeal based on your past behavior. You’re essentially saying: “I made a mistake, but I’ve been responsible otherwise. Will you remove this from my credit report?”

It’s most effective when the negative item is small and your overall record is strong. You're not demanding anything—just asking the creditor to help you out.

When It’s Used

People usually send goodwill letters after something unexpected causes them to miss a payment—things like a medical emergency, a job loss, or a technical issue with automatic payments.

Goodwill letters are not effective for accounts in collections, charged-off debts, or serious delinquencies. Those situations call for different strategies like pay-for-delete agreements or credit dispute letters.

Does a Goodwill Letter Actually Work?

There’s no guarantee your creditor will remove a late payment—but that doesn’t mean it’s not worth trying.

What You Can—and Can’t—Expect

Creditors aren’t required to respond to or approve a goodwill letter. Some follow strict policies and won’t make changes, even for long-time customers. Others may be more flexible, especially if your request is reasonable and well-written.

Goodwill letters are more likely to work if:

• You’ve made all your other payments on time
• The account is still open and in good standing
• You explain what happened clearly and respectfully

Realistic Outcomes

If your goodwill letter is successful, here’s what might happen:

• Late payment removed – The negative mark disappears from your credit report
• Account updated to “paid as agreed” – The late status gets replaced with a positive one
• Request denied – You may get a polite rejection or no response at all

If your request is denied, don’t give up immediately. Wait a few months and try again—especially if you’ve continued to pay on time since the issue.

When to Send a Goodwill Letter

Timing matters when it comes to goodwill letters.

You should only send one after you’ve brought your account current. If you’re still behind on payments, the lender is less likely to approve your request.

The older the negative mark, the better your odds. A late payment that’s over a year old is often easier to get removed than one from last month.

Goodwill letters tend to work best with long-term accounts—especially mortgages, auto loans, or student loans where you’ve built a strong payment history over time.

How to Write a Goodwill Letter That Works

A goodwill letter should be short, sincere, and specific. You’re not writing a legal argument—you’re making a personal request.

Focus on building trust. Explain the situation honestly, take responsibility, and ask if they’ll consider helping you out.

Key Elements to Include

Make sure your goodwill letter includes the following:

• Your account info – Include your full name, account number, and any relevant dates.
• A brief explanation – State what happened in one or two sentences. Don’t go into unnecessary detail.
• Proof of hardship or cause – If there was a specific event (like job loss or hospitalization), mention it. You don’t need to attach documents unless requested.
• A request for goodwill adjustment – Clearly ask them to remove the late payment or update the account to “paid as agreed.”
• A respectful, appreciative tone – Keep the tone polite and professional. Express gratitude for their time and past service.

What to Avoid

Avoid these common mistakes:

• Making threats or legal demands – This isn’t a dispute or negotiation. It’s a favor request.
• Overexplaining or writing a long letter – Keep it to one page or less.
• Admitting fault in a way that could backfire – You can acknowledge the issue without providing ammunition for future problems.

Goodwill Letter Template

Here’s a simple template you can customize:

Where and How to Send a Goodwill Letter

There’s no universal rule for sending a goodwill letter, but getting it in front of the right department helps your chances.

Mail vs. Email

• Mail – More formal and may be taken more seriously. Use certified mail if you want delivery confirmation.
• Email – Faster and easier, especially if you have a contact at the company.

Either way, send it to customer service, the credit department, or the executive resolution team. You can often find contact info on your billing statement or the creditor’s website.

Follow-Up Tips

• Wait 30–45 days – Give the creditor enough time to process your request.
• Be persistent but polite – If you don’t hear back, it’s OK to send a second letter or follow up with a phone call.
• Try again later – If they say no, wait a few months and try again—especially if your payment history continues to improve.

Alternatives If a Goodwill Letter Doesn’t Work

If your goodwill letter doesn’t lead to a deletion, there are still other ways to repair your credit.

Disputing Credit Report Errors

If the late payment is inaccurate—wrong date, wrong status, or doesn’t belong to you—you should file a credit dispute with each credit bureau.

This process is backed by the Fair Credit Reporting Act and requires creditors to prove the accuracy of the negative item.

Pay for Delete (for Collections)

If the account is in collections, a goodwill letter won’t help. But you may be able to negotiate a pay-for-delete agreement, where the collection agency removes the item in exchange for payment.

Always get this agreement in writing before you pay.

Rebuilding Your Credit

Even if a late payment stays on your credit report, you can still bounce back.

• Use a secured credit card or credit builder loan
• Keep credit utilization low
• Make on-time payments going forward

These steps help rebuild positive credit history over time and offset the damage.

Final Thoughts

A goodwill letter costs nothing and can help remove a late payment from your credit report.

It’s not guaranteed—but it’s one of the few ways to clean up your credit report without filing a formal dispute.

Write a clear, respectful letter, send it to the right place, and follow up professionally. Even if it doesn’t work the first time, it’s worth trying again.