Goodwill Letter
CreditGlossary term
Definition
A written request sent to a creditor asking them to remove a negative item, such as a late payment, from your credit report as a gesture of goodwill. This approach works best when you have a strong history with the creditor and the negative item was an isolated incident caused by circumstances beyond your control. There is no guarantee a creditor will honor the request, but many people have had success with polite, well-written goodwill letters.
Related terms
- Payment HistoryA record of whether you have paid your credit accounts on time, which is the single most important factor in calculating your credit score. Even one late payment can significantly lower your score, and the impact increases with the severity of the delinquency. Consistent on-time payments over many years build a strong credit foundation.
- Credit DisputeA formal process in which you challenge inaccurate or incomplete information on your credit report by filing a claim with the credit bureau or the creditor that reported it. Under the FCRA, the credit bureau must investigate your dispute, usually within 30 days, and correct or remove any information that cannot be verified. You can dispute errors online, by phone, or by mail with each of the three major credit bureaus.
- Credit ReportA detailed record of your credit history maintained by credit bureaus, including your accounts, payment history, balances, and any public records like bankruptcies. Lenders, landlords, and sometimes employers review your credit report to assess your financial reliability. You are entitled to one free credit report per year from each of the three major bureaus through AnnualCreditReport.com.
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