Ways to Boost Credit Score; Goodwill Letter

If you have an outstanding debt that has been sent to a collection agency, you may be feeling overwhelmed and stressed. This might have to do with the impact it can have on your credit report.

However, it is essential to know that there are steps you can take to improve your credit score. You can even do this despite negative items on your report. One of the most effective strategies is to write a goodwill letter for collection agency. This can help to remove the negative item from your credit report.

Let’s get started on creating an effective goodwill letter for collection agency!

What Is a Goodwill Letter?

A goodwill letter is a written request you send to a collection agency or creditor. This letter asks them to remove negative information from your credit report. The letter’s purpose is to explain your situation and express remorse for any mistakes you have made. It is to request that the negative item be removed as a goodwill gesture.

While a goodwill letter is not a guaranteed solution, it can be a powerful tool for improving your credit score. It can help with repairing your credit history. If the collection agency agrees to your request, they will contact the credit bureaus.

The agency will request that the negative item be removed from your credit report. This can significantly impact your credit score, improving it by dozens of points or more.

Why Write a Goodwill Letter for Collection Agency?

You should write a goodwill letter to a collection agency or creditor for many reasons. Here are a few of the most common:

To Improve Your Credit Score

Negative items on your credit report, such as collections or late payments, can significantly impact your credit score. By having these items removed, you can improve your credit score. This will make it easier to get approved for loans, credit cards, and other types of credit.

To Settle a Debt

If you cannot pay off your debt in full, writing a goodwill letter may be a way to negotiate a settlement. You may be able to come to a mutually beneficial agreement. Do this by offering to pay a portion of the debt in exchange for removing the negative item from your credit report. 

To Correct a Mistake

If the negative item on your credit report results from an error or mistake, a goodwill letter can be a way. This will help to correct the situation and have the item removed.

To Explain Extenuating Circumstances

This works if the negative item on your credit report results from extenuating circumstances, such as a medical emergency or job loss. A goodwill letter can explain your situation and ask for leniency.

person wearing brown sweater writing with pen in book
person wearing brown sweater writing with pen in book

How to Write a Goodwill Letter

Writing a goodwill letter may seem daunting, but it doesn’t have to be. Here are the steps you can take to write an effective goodwill letter:

Step 1: Gather Information

The first step in writing a goodwill letter is gathering information about your credit report’s negative item. This could include the name and contact information of the collection agency. You should add the date of the negative item, the amount owed, and any other relevant details.

It is essential to have all of this information readily available before you begin writing your letter. This will help you be more specific and detailed in your request, increasing your chances of getting a positive response.

Step 2: Review Your Credit Report

Before you begin writing your goodwill letter, it is essential to review your credit report. This is to make sure that all of the information is accurate. If you find any errors or inaccuracies, dispute them with the credit bureau as soon as possible.

Reviewing your credit report to identify other harmful items that may hurt your credit score is also a good idea. You can improve your credit score by addressing all of the negative items on your credit report. It will increase your chances of getting approved for credit in the future.

Step 3: Explain Your Situation

In the first paragraph of your goodwill letter, you should explain your situation to the collection agency. This could include any extenuating circumstances that led to the negative item on your credit report. This could be a job loss, a medical emergency, or a financial hardship.

Be honest and straightforward in your explanation and brief and to the point. Remember that the person reading your letter is likely to be busy. They may not have a lot of time to read a long letter. Keep your explanation brief but precise, and focus on the most important details.

Step 4: Apologize for Any Mistakes

In the next paragraph of your letter, you should apologize for any mistakes that you may have made. This could include late payments, missed payments, or unpaid bills. Be sincere in your apology and acknowledge your responsibility for the situation.

Remember that the purpose of a goodwill letter is to ask for forgiveness. It shows that you are willing to take responsibility for your actions. By apologizing for any mistakes you have made, you demonstrate that you are serious about resolving the situation.

Step 5: Request That the Negative Item Be Removed

The next step in your goodwill letter is to request that the negative item be removed from your credit report. Be clear and direct in your request and respectful and polite. Explain that you understand the negative impact of the collection account on your credit score. Add that you would appreciate it if they would remove it as a gesture of goodwill.

It is important to remember that the collection agency is not required to remove the negative item from your credit report. However, by making a respectful and sincere request, you increase your chances of getting a positive response.

Step 6: Provide Any Supporting Documentation

Providing supporting documentation with your goodwill letter may be helpful. This could include proof of payment, evidence of financial hardship, or any other documentation that supports your situation.

You can include any documentation that supports your situation and helps to explain why you fell behind on payments.

Step 7: Thank the Collection Agency

Finally, you should end your goodwill letter by thanking the collection agency for their time and consideration. Be polite and respectful, and express your appreciation for their willingness to review your situation.

It is essential to end the letter on a positive note. However, you are unsure whether the collection agency will agree to your request. Remember that a goodwill letter is not a guarantee of success but a positive step in the right direction.

Tips for Writing a Successful Goodwill Letter

Here are a few tips to help you write a successful goodwill letter:

Be Sincere

A goodwill letter is most effective when it is sincere and heartfelt. Be honest about your situation, take responsibility for your mistakes, and express genuine remorse for any harm you may have caused.

Keep It Concise

While you want to provide enough information to make a convincing case, It is important to make your letter brief. Stick to the most important details and avoid rambling or getting off-topic.

Be Professional

Your letter should be written in a professional and respectful tone. Avoid using emotional language or making accusations, and proofread your letter for spelling and grammatical errors.

Follow Up

After you have sent your letter, follow up with the collection agency to ensure they have received it and are considering your request. Be persistent but respectful in your follow-up communications, and be prepared to negotiate if necessary.


A goodwill letter can be a powerful tool for improving your credit score and repairing your credit history. It doesn’t matter if you have negative items on your credit report.

Take the time to write a sincere and professional letter to the collection agency or creditor. You can demonstrate willingness to take responsibility for your debt and work towards a mutually beneficial solution.

While there are no guarantees that your request will be granted, a well-written goodwill letter can increase your chances of success. This will help you move towards a brighter financial future.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

Professional Payment Reminder Text For Deadline

Busy schedules, filled email inboxes, and other things can make it difficult for your clients to keep up with payments.…

March 24, 2023

Steps To Writing Payment Reminder Notification (Free Samples)

Dealing with outstanding payments is almost inevitable for businesses. To be candid, offering a service without getting paid is frustrating.…

March 24, 2023

Recover Debt With Medical Bill Collection Letter Template 

Medical debt has been the bane of healthcare providers’ existence for a while. Unfortunately, with rising healthcare costs, this problem…

March 24, 2023

Guide to a Reminder Letter for Rent Payment

Writing a reminder letter for rent payment can be an intimidating task. As a landlord, you must ensure your tenants…

March 24, 2023

Write an Effective Overdue Rent Payment Letter

Overdue rent payments can be incredibly difficult to manage. But with a well-written overdue rent payment letter, you can take…

March 24, 2023

Quick Guide to a Dental Office Collection Letter

Struggling to manage your dental office’s finances? A well-crafted dental office collection letter can help you secure overdue payments and…

March 24, 2023