Spencer Lanoue
Sometimes, accounts get closed, and that might leave a mark on your credit report. If you think it was a one-off situation or there’s a genuine reason behind it that can be explained, a goodwill letter could be your best friend. This blog post is going to guide you step-by-step through the process of writing an effective goodwill letter for a closed account. Helping you to potentially improve your credit report.
What’s a Goodwill Letter and Why Write One?
Imagine you're at a party, and you accidentally bump into someone. Spilling their drink. A goodwill letter is kind of like the apology you’d offer. Explaining the situation and hoping the person will understand and forgive the mishap. In the realm of credit scores, this letter is your chance to reach out to a creditor to request the removal of a negative mark from your credit report.
Why bother writing one? Well, a goodwill letter can sometimes lead to the deletion of unfavorable information from your credit report. Which could improve your credit score. It's a simple, polite request. Not a guarantee. But it can sometimes yield positive results.
When to Send a Goodwill Letter
Timing is everything, right? Well, sending a goodwill letter is no exception. Here’s when it might be a good idea to put pen to paper:
- After a One-Time Mistake: If you missed a payment because of an oversight but have otherwise been a stellar payer, this is a good time to write.
- Once the Account is Settled or Closed: If the account is no longer active, writing a letter can help address past issues without the need to fix current ones.
- If Your Financial Situation Has Changed: Maybe you faced financial hardship but are now back on track. Explaining this can sometimes help.
Remember, the goal is to convey genuine remorse and demonstrate your commitment to maintaining good credit habits moving forward.
How to Structure Your Goodwill Letter
Just like a good story, your letter should have a clear beginning, middle, and end. Here’s a breakdown:
Greeting
Start with a polite greeting. Address the letter to a specific person if possible. Calling the company to find the right contact can add a personal touch.
Introduction
The opening paragraph should state who you are and why you’re writing. Keep it brief but informative.
Body
This is where you tell your story. Explain the situation that led to the account closure in a few short sentences. Be honest, and don’t make excuses. If there was a specific event, like a medical emergency or job loss, mention it here.
Follow up with what you’ve done to rectify the situation, like paying off the account or setting up a budget. This shows your responsibility and willingness to improve.
Conclusion
End with a polite request for the creditor to consider removing the negative mark from your credit report. Thank them for their time and consideration.
Sample Goodwill Letter
To make this more concrete, here’s a sample letter you can model yours after:
Dear [Creditor's Name],
I hope this message finds you well. I am writing regarding my account, [Account Number], which was closed on [Date].
I encountered some financial difficulties due to [brief explanation of personal situation, e.g., a medical emergency], which led to a missed payment in [Month/Year]. Since then, I have taken steps to regain control of my finances, including [mention any corrective actions, like setting up a budget or obtaining financial counseling].
I sincerely apologize for this oversight and appreciate your understanding. I am kindly requesting that you consider removing the negative mark from my credit report as a gesture of goodwill. I value the relationship I have with [Creditor's Company Name] and am eager to maintain positive financial habits moving forward.
Thank you for considering my request. I look forward to your positive response.
Warm regards,
[Your Name]
[Your Contact Information]
Personalizing the Letter for Better Results
While templates are helpful, personalizing your letter can make a big difference. Here are some tips:
- Be Honest: Share your story sincerely. Authenticity can resonate with the reader.
- Show Progress: Highlight steps you’ve taken to improve your situation.
- Remind Them of Your Loyalty: If you’ve been a long-time customer, mention it.
Adding these touches can make your letter stand out as genuine rather than just another request.
What to Avoid in Your Goodwill Letter
There are a few pitfalls to steer clear of when drafting your letter:
- Demanding Tone: Remember, you’re asking a favor, not making a demand.
- Lengthy Explanations: Keep it concise. Long letters can lose the reader’s interest.
- Errors and Typos: Proofread to ensure your letter is professional and polished.
A well-crafted letter is more likely to be taken seriously, so take your time to get it right.
Following Up After Sending the Letter
Once you’ve sent your letter, patience is your next best step. However, if you don’t hear back within a month, consider a follow-up:
- Polite Inquiry: Call or email to check if they received your letter.
- Send a Follow-up Letter: A brief reminder can sometimes nudge them to respond.
Persistence can pay off, but always keep the tone respectful.
Alternative Options if Your Request is Denied
Not all goodwill letters result in success, but that’s not the end of the road. You still have options:
- Negotiate a Pay for Delete Agreement: Offer to pay the outstanding balance in exchange for removing negative marks.
- Dispute Errors: If there are any inaccuracies on your report, file a dispute with the credit bureau.
- Focus on Building Positive Credit: Make timely payments on open accounts to improve your credit score over time.
Remember, improving your credit is a marathon, not a sprint.
The Role of Spell in Drafting Your Goodwill Letter
Writing isn’t everyone’s strong suit, and that’s okay. Tools like Spell can ease the process. From drafting to refining, Spell can help you craft a polished goodwill letter quickly and efficiently. It’s like having a writing assistant available 24/7.
With Spell, you can jump from a blank page to a well-structured letter in no time. Plus, you can make edits with simple, natural language prompts—no more endless copy-pasting!
Final Thoughts
Writing a goodwill letter after a closed account is a proactive step towards improving your credit health. While it’s not a guaranteed fix, it can sometimes lead to positive outcomes. Remember, tools like Spell can help make the process smoother and faster, letting you focus on the steps that matter most. Give it a try and see how it can transform your writing experience.
