The Power of a Goodwill Letter!

We all know that life can throw unexpected curveballs, leaving us struggling to keep up with our financial obligations. I've personally experienced the stress of falling behind, and I know how much it can impact your credit.

When I faced a period of unemployment, even though I tried to make partial payments, I fell behind on my credit card and car loan. My credit score took a major hit, and my dreams of buying a home were put on hold.

But there's a powerful tool you might not know about: the goodwill letter.

Goodwill Letters: When You Need a Second Chance

A goodwill letter is a formal request to a creditor to remove negative payment history from your credit report. It's a way to appeal to their understanding and request a "goodwill adjustment."

When to Use a Goodwill Letter:

• Temporary Hardship: When you experienced a temporary setback (job loss, illness, etc.) that caused you to miss payments.

• Strong Payment History: When you have a long history of making on-time payments before and after the hardship.

• Account is Current: Your account should be up-to-date when you send the letter.

• Genuine Remorse: You should sincerely express your regret for the late payments.

My Goodwill Letter Success Story

I sent goodwill letters to my credit card company and my auto loan lender, explaining my unemployment situation and emphasizing my otherwise excellent payment history. To my surprise and relief, both lenders removed the late payments from my credit report within 30 days!

What to Include in a Goodwill Letter:

• Clearly state your account number and contact information.

• Sincerely apologize for the late payments.

• Briefly explain the reason for the hardship (without making excuses).

• Highlight your positive payment history and your long-term relationship with the creditor.

• Explain how the negative marks are affecting you.

• State your commitment to responsible financial behavior going forward.

• Express your gratitude for their consideration.

Hardship Programs: A Brief Note

If you are currently experiencing financial difficulties and need immediate assistance, you should also contact your lenders about their hardship programs. These programs offer temporary relief, such as payment deferrals or reductions. For more detailed information on hardship programs, please refer to our blog post: "Hardship Programs: Your Lifeline for Avoiding Eviction, Repossession, and Debt Disaster" (published April 11, 2025).

Ten Dollar Credit Repair: Your Partner in Credit Recovery

At Ten Dollar Credit Repair, we provide you with the strategies and support you need to navigate both goodwill requests and other credit repair challenges. We're here to help you get back on track and achieve your financial goals.