Goodwill Letter Guide: How to Remove Late Payments From Your Credit Report

A single late payment can drop your credit score by 60 to 100 points and stay on your report for seven years—but you may be able to get it removed early. A goodwill letter is a written request asking your creditor to remove an accurate late payment from your credit report as a gesture of goodwill. While creditors have no legal obligation to honor these requests, many consumers have successfully used this approach to clean up their credit history. This guide walks you through everything you need to know: when goodwill letters work, how to write one that gets results, and what to do if your request is denied.

What Is a Goodwill Letter?

A goodwill letter (sometimes called a "late payment removal letter") is a formal written request to your creditor asking them to remove a late payment notation from your credit report—even though the information is accurate.

Unlike a dispute letter that challenges incorrect information under the Fair Credit Reporting Act (FCRA), a goodwill letter acknowledges that you made the mistake. You're essentially asking the creditor to show you mercy based on your overall relationship and circumstances.

Goodwill Letter vs. Dispute Letter

Understanding the difference between these two approaches is critical. Using the wrong one can waste your time or even hurt your case.

The bottom line: If the late payment on your report is wrong—wrong date, wrong amount, or it never happened—file a dispute. If the late payment is accurate but you have a good explanation, send a goodwill letter.

Do Goodwill Letters Actually Work?

Let's be realistic: most goodwill letter requests get denied. Creditors have no legal obligation to remove accurate information, and some banks have explicit policies against honoring these requests.

That said, goodwill letters do work for some people. Based on consumer reports and credit repair forums, success rates appear to fall in the 10-30% range. Not great odds, but not zero either—and considering there's no downside to trying, it's worth the effort.

When Goodwill Letters Are Most Likely to Work

Your chances of success are highest when:

1. It's your first offense — One isolated late payment in an otherwise spotless history
2. You're a long-standing customer — Years of on-time payments before the slip
3. You have extenuating circumstances — Medical emergency, job loss, natural disaster
4. You've recovered completely — Multiple on-time payments since the incident
5. The account is in good standing — Current balance, no other issues
6. It was only 30 days late — Not 60, 90, or 120+ days delinquent

Technical issues also make compelling cases: autopay failures, bank account transitions, mail delivery problems, or address changes that caused you to miss a statement.

When Goodwill Letters Typically Don't Work

Don't waste your time with a goodwill letter if:

• You have multiple late payments over time (not a one-time mistake)
• The account has been sent to collections
• The account was charged off
• You have no legitimate explanation ("I forgot" isn't compelling)
• Your bank has a strict no-removal policy (more on this below)

How Late Payments Affect Your Credit Score

Before diving into the writing process, it's helpful to understand exactly what you're fighting against. To learn more about how your score is calculated, check out our credit score basics guide.

Payment history accounts for 35% of your FICO score—the single largest factor according to FICO. Even one late payment can cause significant damage, and the impact varies based on how late the payment was:

According to Experian, the exact score impact depends on your overall credit profile:

• Excellent credit (780+): A single 30-day late payment can drop your score 60-110 points
• Average credit (680): Expect a 40-70 point decrease
• Poor credit (580): May see a 20-40 point drop

The good news? Late payment impact diminishes over time. After 6-12 months, you'll start to see recovery. After two years, the impact is significantly reduced. And after seven years, the late payment falls off completely per the Fair Credit Reporting Act.

Understanding how long negative information stays on your report—and how it affects you—is easier when you know how to read your credit report.

Step-by-Step Guide to Writing a Goodwill Letter

Ready to write your letter? Follow this process for the best chance of success.

Before You Write: The Pre-Writing Checklist

1. Verify the late payment is accurate — Check your credit report for the exact date, amount, and status. If anything is wrong, file a dispute instead.
2. Confirm your account is current — Pay any outstanding balance first. Creditors won't consider goodwill requests on delinquent accounts.
3. Gather your account details — Account number, creditor contact information, dates of late payments
4. Document your circumstances — Collect any supporting evidence (medical bills, layoff notice, etc.)
5. Review your payment history — Know how many on-time payments you've made before and after the incident

Writing Your Letter: The Essential Components

Your goodwill letter should be typed, professional, and no longer than one page. Include these elements:

Header information:

• Your full name and address
• Account number
• Today's date
• Creditor's name and address

Opening paragraph:

• Thank the reader for their time
• State your purpose clearly (requesting a goodwill adjustment)

Middle section:

• Acknowledge full responsibility—don't make excuses
• Explain your circumstances briefly and specifically
• Highlight your track record before and after the incident
• Mention your relationship length with the creditor

Closing:

• Make your request clearly: ask them to remove the late payment notation
• Express gratitude for their consideration
• Provide contact information

How to Send Your Goodwill Letter

Sending method matters. Here's the recommended approach:

1. Mail via certified mail with return receipt — This creates proof of delivery
2. Send to the right address — Use the address listed on the creditor's website or your credit report
3. Keep copies of everything — Letter, receipt, tracking number
4. Wait 30 days before following up — Give them time to process and respond

Some creditors also accept requests through online secure messaging or phone calls. However, having a written record via certified mail is generally preferred for your first attempt.

Goodwill Letter Templates

Below are three templates you can customize for your situation. Remember to replace all bracketed information with your specific details.

Template 1: First-Time Late Payment (General Purpose)

[Your Name]
[Your Address]
[City, State ZIP]
Account Number: [XXXX-XXXX-XXXX-XXXX]

[Date]

[Creditor Name]
[Creditor Address]
[City, State ZIP]

Re: Request for Goodwill Adjustment – Account #[XXXX]

Dear [Creditor Name] Customer Service,

Thank you for taking the time to read this letter. I am writing to request 
a goodwill adjustment to remove a late payment reported on my account for 
[Month/Year].

I want to acknowledge that I understand my financial obligations, and I 
take full responsibility for this late payment. This was an isolated 
incident and does not reflect my typical payment habits. Prior to this, 
I maintained [X years] of perfect on-time payments with [Creditor Name].

The late payment occurred because [brief, honest explanation—e.g., "I was 
transitioning between jobs and temporarily fell behind on my bills"]. 
Since then, I have resumed timely payments and have not missed a single 
due date.

I am writing because I plan to apply for [a mortgage/auto loan/refinancing], 
and this single late payment is significantly impacting my ability to 
qualify for favorable terms. I believe my overall payment history 
demonstrates my creditworthiness and commitment to meeting my financial 
obligations.

I respectfully request that you consider removing this late payment from 
my credit report as a goodwill gesture. I truly value my relationship 
with [Creditor Name] and plan to remain a loyal customer.

Thank you for your consideration.

Sincerely,

[Your Signature]
[Your Printed Name]
[Phone Number]
[Email Address]

Template 2: Financial Hardship Circumstances

[Your Name]
[Your Address]
[City, State ZIP]
Account Number: [XXXX-XXXX-XXXX-XXXX]

[Date]

To Whom It May Concern:

I am reaching out regarding my [Creditor Name] account and a late payment 
reported in [Month/Year].

I want to express my gratitude for the excellent service I have received 
as a customer since [year account opened]. Throughout our [X-year] 
relationship, I have consistently prioritized my payments to [Creditor Name].

Unfortunately, in [Month/Year], I experienced [specific hardship: job loss, 
medical emergency, family emergency, natural disaster]. During this 
difficult time, I fell behind on my payment. I deeply regret that this 
happened.

Since recovering from this situation, I have:
- Brought my account completely current
- Made [X] consecutive on-time payments
- [Any other relevant improvements]

I am not asking you to overlook my responsibility—I fully acknowledge my 
obligation. However, I am hoping you might consider this a one-time 
exception given my otherwise strong payment history and the extenuating 
circumstances I faced.

Removing this late payment from my credit report would greatly help me as 
I work to [specific goal: purchase a home, refinance existing debt, etc.].

Thank you for taking the time to review my request.

With appreciation,

[Your Signature]
[Your Printed Name]
[Contact Information]

Template 3: Long-Time Customer Appeal

[Your Name]
[Your Address]
[City, State ZIP]
Account Number: [XXXX-XXXX-XXXX-XXXX]

[Date]

[Creditor Name]
Customer Service Department
[Address]

Re: Goodwill Adjustment Request – [X]-Year Customer

Dear [Creditor Name] Team,

I am writing as a loyal customer of [X] years to request a goodwill 
adjustment regarding a late payment reported on my account in [Month/Year].

Since opening my account in [Year], I have:
- Made [X] total payments
- Maintained a positive payment history for [X] years
- Never requested a similar adjustment before
- [Any other loyalty indicators: multiple products, referrals, etc.]

The late payment in question was the result of [brief explanation]. I have 
since implemented [autopay/calendar reminders/etc.] to ensure this never 
happens again.

Given my long-standing relationship with [Creditor Name] and my track 
record of [X] years of responsible account management, I am respectfully 
requesting that you remove this single late payment notation from my 
credit report.

I understand this request is discretionary and that you are under no 
obligation to grant it. However, I believe my history demonstrates that 
this was truly an anomaly, and I hope you will consider this gesture of 
goodwill.

Thank you for your time and for [X] years of excellent service.

Respectfully,

[Your Signature]
[Your Printed Name]

Bank-by-Bank Policies: What to Expect

Not all creditors treat goodwill requests equally. Understanding your creditor's typical stance can help you set realistic expectations—and decide whether to try alternative strategies.

Why Some Banks Say No

Banks that decline goodwill requests often cite these reasons:

• FCRA interpretation: They believe the law requires them to report accurate information
• Credit bureau agreements: Contracts with bureaus may prohibit negotiated removals
• Fraud prevention: Concerns about improper "pay for delete" arrangements
• Consistency: Avoiding precedent that invites more requests

The Goodwill Saturation Technique

If your first goodwill letter is denied—or you get no response—don't give up. Many successful consumers report using a "saturation technique" involving multiple attempts over time.

How the Saturation Technique Works

1. Send your initial letter via certified mail
2. Wait 30 days for a response
3. If denied or ignored, send another letter (slightly revised)
4. Repeat the process over several months
5. Try different contact methods:
   • Mail to different departments
   • Phone calls to customer service
   • Secure messages through your online account
   • Email if available

Why This Sometimes Works

Different representatives see different letters, and policies can change. Seasonal factors may play a role—some consumers report better luck at the end of quarters or fiscal years. Persistence also demonstrates commitment and shows you're serious about your request.

According to NerdWallet's analysis of consumer forums, this process can take "three to six months of repeated attempts, and in some cases up to a year."

Important Cautions

• Stay professional — Never become aggressive or demanding
• Document everything — Track all attempts and responses
• Know when to stop — If you receive a firm policy denial in writing
• Be consistent — Don't change your story between attempts

What to Do If Your Goodwill Letter Is Denied

Received a denial? You still have options.

Immediate Steps After Denial

1. Accept it gracefully — Don't argue or threaten
2. Ask for clarification — "Is there anything I can provide to support a different outcome?"
3. Document the denial — Save any written response
4. Wait 60-90 days before trying again with the saturation technique

Alternative Strategies

Try a different contact method. If you mailed your letter, try calling customer service. If you called, try the secure message feature on their website. Ask to speak with a supervisor who may have more authority.

Look into hardship programs. Some lenders offer financial hardship programs that may help prevent future late payments, even if they can't remove past ones.

Wait for natural aging. Late payments have significantly less impact after two years. While not ideal, time will reduce the damage to your score.

Focus on credit building. You can offset negative information with positive actions. Consider these strategies from our guide to improving your credit score:

• Get added as an authorized user on a family member's good account
• Use Experian Boost to add utility and streaming payments
• Open a credit builder loan to add positive payment history
• Keep credit utilization under 30% (ideally under 10%)

Check for disputable errors. Review the late payment details carefully. If ANY aspect is inaccurate—the date, the amount, the account status—you can file a formal dispute under the FCRA.

If you're in the middle of a mortgage application and need faster results, ask your lender about a rapid rescore.

The 7-Year Timeline: How Long Late Payments Stay on Your Report

Late payments remain on your credit report for up to seven years from the date the late payment was first reported. This timeline is set by the FCRA.

Here's how different scenarios play out:

What Is the "Original Delinquency Date"?

This is the date of your first missed payment in a series of late payments. This date sets the seven-year clock, and it does NOT reset if:

• The account goes to collections
• The debt is sold to another collector
• You make partial payments later

Understanding this timeline can help you set realistic credit score goals for your financial future.

How to Prevent Future Late Payments

Once you've addressed your current late payment situation, focus on prevention:

1. Set up autopay for at least the minimum payment on all accounts
2. Create calendar reminders a few days before each due date
3. Consolidate due dates — Many creditors will move your due date to a more convenient day
4. Build an emergency fund — Even one month of expenses can prevent missed payments during hardships
5. Use payment tracking apps — Many budgeting apps can send alerts before bills are due
6. Keep contact information updated — Make sure creditors can reach you about payment issues

Final Thoughts

A goodwill letter is one of the few tools available to remove accurate negative information from your credit report. While success isn't guaranteed, the zero-risk nature of the process makes it worth trying for anyone with an isolated late payment and a good explanation.

Remember these key points:

• Be honest and take responsibility — Creditors respond better to accountability
• Be specific about circumstances — Vague letters get ignored
• Be persistent but professional — Multiple attempts increase your odds
• Have realistic expectations — Most requests are denied, but some succeed

Whether your letter works or not, focus on building positive credit habits going forward. Time heals most credit wounds, and consistent on-time payments will eventually overshadow any past mistakes.