When it comes to managing your credit score, closed accounts can often have a lingering negative impact. I’ve personally navigated this challenge multiple times by writing goodwill letters to creditors, successfully removing closed accounts from my credit report.
In this guide, I’ll share my unique experience, provide three effective templates, and offer tips to help you write a persuasive goodwill letter.
A goodwill letter is a formal request to a creditor asking them to remove a closed account from your credit report. Unlike disputes, which challenge the accuracy of a report, goodwill letters appeal to the creditor’s sense of goodwill.
[Your Name]
[Your Address]
[City, State, ZIP Code]
[Date]
[Creditor’s Name]
[Creditor’s Address]
[City, State, ZIP Code]
Dear [Creditor’s Name],
I hope this letter finds you well. I am writing to request your consideration in removing a closed account from my credit report. The account in question is [Account Number], which was closed on [Date of Closure].
Due to [brief explanation of circumstances, e.g., job loss, medical emergency], I encountered financial difficulties which led to the closure of this account. Since then, I have taken significant steps to improve my financial health, including [brief description of steps taken, e.g., budgeting, financial counseling].
Removing this account would greatly help me in [specific goal, e.g., securing a mortgage, improving credit score]. I understand this is an unusual request, but I am hopeful that you will consider it favorably.
Thank you for your time and understanding.
[Your Name]
[Your Address]
[City, State, ZIP Code]
[Date]
[Creditor’s Name]
[Creditor’s Address]
[City, State, ZIP Code]
Dear [Creditor’s Name],
I am writing to you regarding my closed account, [Account Number], which was closed on [Date of Closure]. I want to explain the circumstances that led to this situation and request your goodwill in removing this account from my credit report.
In [Year], I faced [detailed explanation of the situation, e.g., a severe medical condition that resulted in substantial medical bills]. Despite my best efforts, I was unable to keep up with the payments, leading to the closure of the account. Since then, I have worked diligently to regain my financial footing, including [specific actions taken, such as completing a financial management course, setting up an emergency fund].
Removing this account from my credit report would significantly aid in my efforts to [specific goal, e.g., qualify for a home loan, obtain a better interest rate]. I am sincerely asking for your understanding and assistance in this matter.
Thank you for considering my request.
Best regards,
[Your Name]
[Your Name]
[Your Address]
[City, State, ZIP Code]
[Date]
[Creditor’s Name]
[Creditor’s Address]
[City, State, ZIP Code]
Dear [Creditor’s Name],
I am writing to you regarding my closed account, [Account Number], closed on [Date of Closure]. I am requesting your goodwill in removing this account from my credit report due to extenuating circumstances that led to its closure.
In [Year], I experienced [explanation of circumstances, e.g., unexpected job loss], which drastically affected my financial situation. Enclosed with this letter are documents that provide context for my situation, including [list of supporting documents, e.g., termination letter, medical bills].
Since then, I have taken substantial steps to improve my financial health, such as [specific actions taken, e.g., securing stable employment, enrolling in financial planning courses]. Removing this account from my credit report would immensely help me achieve [specific goal, e.g., purchasing a home, refinancing my car loan].
I appreciate your time and understanding in this matter and look forward to your favorable response.
Sincerely,
[Your Name]
[Enclosures: List of Documents]
From my own journey of writing goodwill letters, I’ve learned several key lessons:
A few years ago, I faced a similar challenge when a closed account affected my credit score. After writing a detailed goodwill letter and following up persistently, the creditor agreed to remove the account from my report. This positively impacted my credit score and helped me secure a mortgage with favorable terms.
Writing a successful goodwill letter to remove a closed account is not guaranteed, but with persistence, honesty, and the right approach, it is possible. Use the templates provided as a starting point, personalize them to reflect your situation, and follow the tips shared from my personal experience.