Having negative items on your credit score can impact your buying power. If your credit is generally in good standing but you made a one-off mistake that lowers your score a few points, you might use a goodwill letter as a credit repair strategy. It’s a strategy that shouldn’t be used all the time and it’s not always effective. We’ve explained some situations where writing a goodwill letter is worth the time and how to write one.
Only Use A Goodwill Letter For Logical Reasons
Writing a bunch of goodwill letters to creditors won’t be very effective. Instead, when you need to remove negative items from your credit report, take the time to think out the content of your letter. For example, if you or your family experienced an unexpected medical situation that prevented you from paying a bill, include that information in your goodwill letter.
Another logical reason could be that you recently changed banks after a move and one of your bills didn’t get transferred over, which resulted in a late payment. Forgetting to change your address for a service could have also resulted in not paying a bill. These one-off situations are logical enough where creditors might remove the negative items from your credit report.
Are Goodwill Letters Effective?
Goodwill letters are most effective when you are in good standing with lenders and have a long positive history. However, if you have a pattern of late payments or have gone through the collections process before, then the chances of your goodwill letter being successful are much lower. Ultimately, it’s up to the creditor whether they want to remove the negative item, but it’s still worth it to try when you need credit repair assistance.
The Language In Your Goodwill Letter Makes A Difference
Creditors aren’t interested in reading about any emotional situations you went through. They want to read about the facts of the situation, including why you missed the payment, what you’ve done to ensure it won’t happen again, and that your positive credit history proves the error was a one-off situation. When creditors are convinced there’s not a pattern of issues, they are more likely to help with your credit repair efforts.
When you’re looking for the best credit repair in Los Angeles, look no further than Core Credit Solutions. Our team of experts can help you craft a goodwill letter in the right situation to assist in your credit repair efforts. Don’t hesitate to contact us at any time to learn more about our services.