How to easily ask to Remove Recent Late Payments.

Late payments can be damaging to your credit, especially if you stop paying your loans for an extended period of time. We've already gone over the repercussions of delinquency and defaulting, but today, we're going to take a look at another method of repairing your credit report.

What is a Goodwill Letter?

A "goodwill letter" is a simple way to repair your credit report and it can be used for both federal and private loans. The purpose of a goodwill letter is to restore your credit to good standing by having a lender or service erase a lateness on your credit report.

Typically, those that have experienced financial hardship due to unexpected circumstances have the most success with goodwill letters. They allow you to take responsibility for your actions and to ask (in a very nice way) if your student loan service can empathize with the situation that caused the lateness, and erase it from your report.

It can also be used when you think the late payment is an error - for example, if you were in deferment or forbearance during the time of the late payment, and weren't required to make any payments during that time, or if you know you've never been late on a payment before.

Below I have included a "Free" Goodwill Letter Template.

Date

Your Name
Your Address
Your City, State Zip

Executive Name
Creditor's Name
Creditor's Address
Creditor's City, State & Zip Code

Re: Account Number

Dear (Name of Executive):

I have been a good customer with your company since (year). I enjoy doing business with your company and have been pleased over the years. I am writing to request a "goodwill" adjustment be made to the above-mentioned account with the three major credit reporting agencies.

"This is not a dispute of accuracy of credit reporting under FCRA 611(a) or FCRA 623(a)(8)," or words to that effect.

Letters received by creditors are processed by personnel who often misinterpret the content, and treat a GW as a dispute. Then you get a notice of consumer dispute posted to your CR which is a bear to deal with. And maybe a silly letter back from them saying you have provided inadequate information to process your dispute.
When the intent is grant of their good-will, that is not the time when you want to get into unnecessary arguments with them over their mistreatment of your prior communications.

Although I made a late payment(s) on (date), I have an excellent payment history otherwise. My monthly payments are always on time. Please consider removing the negative payment reported by your company from my credit reports. The late payment was a temporary oversight and it has not occurred since that time. The late payments I am requesting deleted and/or removed occurred on (date).

These late payments do not reflect my overall good payment history with your company and I would like them removed. I experienced a temporary loss of income due to (whatever). Again, I really enjoy doing business with your company and hope to continue a satisfying relationship in the future. Please take into consideration my loyalty to your company and work with me to remove these negative marks from my credit reports.

I look forward to hearing from you soon.

Sincerely,

(Signature)

Your Name