How To Create A Goodwill Adjustment Letter, The Free and Easy Way!


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In this article, we’re going to discuss what a “Goodwill Adjustment Letter” is and how it will help you to negotiate the removal of late payments from your credit report.

A Goodwill letter is a written explanation to your creditor for negotiating the removal of a late payment on a delinquent credit account. It can be used for your student loan, mortgage, credit cards, a line of credit, an auto loan, or even a fixed loan. It will also work if the account/loan is with a big bank like Bank Of America, Chase, Wells Fargo, Capital One, or Discover. And many smaller community banks or Credit Unions.

Below, we’ll review how Goodwill Letters work and what information it needs to contain to be effective.

Lastly, I share with you how you can use Chat GPT to help you write a Goodwill Letter for free.

Before we start: I want to let you know that I’m not a lawyer, I’m just someone interested in Do-It-Yourself finance. So the information presented here is not legal/financial advice for fixing your credit! Use the information here to further your own research on how to successfully fix your credit by yourself.

Related posts: How To Easily Remove Late Payments From Your Credit Report

How Goodwill Adjustment Letters Work

A goodwill letter is a written request to a creditor/lender for the removal of a late payment from your account. If the lender is willing to work with you and they honor the request, they will report an update to the credit bureaus which will clear the negative mark (late payment) from your credit record.

With the credit account in good standing, your credit score will go up again. The entire process can take anywhere from 15 to 60 days. Unfortunately, it does not happen overnight.

What Should A Goodwill Letter Contain?

The beautiful thing about writing to your lender (instead of calling on the phone) is that you can control what you’re going to say. You can take your time presenting a statement of facts, which is a significant advantage over giving them a phone call.

A well-written letter will be taken seriously by your lender.

Below, you’ll see an outline containing all the information required for an effective GoodWill letter.

Go ahead and fill out as much as you can, later this will be inputted into Chat GPT for a fully finished GoodWill Letter.

An effective goodwill letter will have the following information:

[Personal Information]

  • Your full name
  • Your address
  • Your contact information (phone number, email)

[Recipient’s Information]

  • The name of the person or department to whom the letter is addressed
  • The company’s name
  • The company’s address

[Account Information]

  • Your account number with the company

[Context and Details]

  • The reason for the late payment (brief explanation)
  • Any relevant dates (when the late payment occurred, when you realized it, etc.)

[Request]

  • A clear request that you want the lender to remove your late payment from your credit report and waive all fees.

[Supporting Information]

  • Any documentation that supports your case for removal of the late payment (if applicable)
  • A brief mention of your positive history with the company (e.g., long-term customer, previous timely payments, etc.)

[Tone and Closing]

  • A polite and respectful tone throughout the letter
  • A closing statement thanking the recipient for their time and consideration

And remember! Be sure to include your e-mail address and copies of any other documents or bank statements required to prove your case!

Using Chat GPT To Craft Your GoodWill Letter For You

If you have not already, go ahead and visit https://chatgpt.com. Then start a new session and enter the following prompt:

“Hi Chat, I need your help to create a Goodwill Letter for a late payment I have with one of my lenders. Below, I’ve summarized all the credit account and lender information for you. As well as the context of my late payment.”

Before you hit enter, paste in the outline of information you filled out in the previous section. 

After that, you should have a pretty well-written Goodwill Letter you can submit to your lender.

If you have more than one late payment, just swap out the contact and account information in your outline and submit the request to Chat GPT to write a new letter.

After you get your output letter in Chat GPT, you’ll want to copy/paste it into a Word Document so you can format it and make it look nice. Then, print it out, sign it, and mail it.

Send it by certified mail too, because that will make it look important!

After you send the letter in, expect the bank/lender/creditor to send you back a letter of response.

AND REMEMBER, once everything is in writing, it stays that way, so be careful what you include in your Goodwill letter, etc.

What Happens Next?

If it’s clear without a doubt that the late payment is a bank error, they’ll have no problem removing it.

If the late payment was because you made the payment late, the lender will still most likely remove it. Then report it back to the bureaus as being deleted.

If you get a written response back, that says “Sorry we cannot remove it!” You’ll need to get a bit more crafty in your writing and respond to any additional information they require. Depending on the lender, this will be easy or difficult.

In fact, if you don’t have a good standing with the bank, you may not get anywhere, even if you escalate it.

Depending on your time and resources you may not get anywhere at all, which then you’ll need to dispute it directly with the credit bureaus.

Lastly, A Goodwill Letter May Do Nothing at all To Help You

Depending on the lender and the person who receives your GoodWill letter, there is a good chance that nothing will come out of it at all on the first try. You may have to fire off more than one letter and try again.

If you want some more information about feedback and ideas to try when things don’t work well with using a GoodWill letter, I recommend you review the following Reddit post: https://www.reddit.com/r/CRedit/comments/1bcd744/goodwill_letters_are_absolutely_useless/

Final Thoughts

Credit Repair is a stressful experience to go through, especially on your own. In order to be successful at it, just remember it’s going to be a slow ongoing process with a lot of letters and other paperwork getting thrown around everywhere.

Success can be achieved if you follow the process and are patient about getting successful results.

For moral support and additional information on repairing your credit, I highly suggest you research some credit repair forums or join a subreddit on Reddit. This way you can get up-to-date live information from people on what they are doing to get their late payments removed from certain lenders, etc.

Check out: https://creditboards.com/forums/index.php and https://www.reddit.com/r/CRedit/

I’m sure there are other forums and boards out there, just Google “credit repair forum” to find out more options.

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