One of the golden rules of credit is simple: Always pay your credit card balance on time whenever possible. However, life happens. Missing a payment can cost you more than just a late fee. It can also lower your credit score since payment history is the biggest factor. But here’s the good news: a late payment doesn’t have to haunt your credit forever. With the right steps, and a little goodwill, you can recover your credit score after a late payment. And that’s by utilizing a goodwill letter.
What Is a Goodwill Letter?
A goodwill letter is a polite request you send to your credit card issuer asking them to remove a late payment from your credit report. Negative marks like late payments can stay on your report for up to seven years. But a goodwill request give you a chance to clean things up and maintain a strong credit score.
Unlike a credit dispute (which you file with the three credit bureaus to fix reporting errors), a goodwill letter isn’t about proving a mistake. It’s simply an apology and a request for leniency. In essence, it’s a way of saying, “I missed a payment, but it won’t happen again.”
You don’t have to send a physical letter either. You can call the number on the back of your card and politely ask if the late payment can be removed. If the first representative can’t help, ask to speak with a manager or the department that handles goodwill adjustments.
You can also send an email, though phone call tend to get faster results.
What to Include in a Goodwill Request?
When contacting your issuer, whether by phone, letter or email, be sure to include:
- Your account number
- Your billing address
- A brief explanation for why you missed the payment
- A specific request to remove the late payment from your credit report
Keep your tone polite, professional and appreciative. Remember, they’re not required to remove it, so kindness goes a long way.
Which Issuers Offer Goodwill Adjustments?
Each credit card company has its own policy on goodwill requests. Some are more flexible than other:
- Bank of America: Typically does not honor goodwill adjustments.
- Chase: Generally does not make goodwill or courtesy adjustments once a late payment is reported.
- American Express: Doesn’t have a public policy, but many customers report successful goodwill removals after reaching out.
- Citi: Similar to Amex, plenty of customers have reported success stores, so it’s worth trying.
- Capital One: No stated policy against goodwill adjustments, so reach out by phone or mail once your bill is current. However, be sure to make sure your late bill is paid before reaching out.
Tip: Catch Late Payments Early
If you ever miss a payment, act fast. Most issuers report to credit bureaus every 30 days, which means you may have a short window to correct the issue before it appears on your credit report.
While it may get a late payment fee, if you contact the credit card issuer early enough, it could prevent damage to your credit score.
Tip: Prevent Future Late Payments
The easiest way to avoid late payments altogether is to set up autopay. You can activate it online or through your card’s mobile app in just a few minutes. Choose to pay at least the minimum balance due. Paying in full each month is the best way to stay debt-free and keep your credit utilization low.
Since payment history accounts for 35% of your credit score, you protect your score by making on time payments. It’s better to pay the minimum than to not pay it at all.
In Summary
Everyone slips up sometimes. A late payment isn’t the end of the world. It doesn’t define your financial future. What matters is how you respond.
If you’ve missed a payment:
- Pay it off immediately
- Contact your card issuer
- Ask for a goodwill adjustment
- Set up autopay to prevent it from happening again
Most issues are willing to work with customers who take responsibility and communicate quickly. By being proactive, you can protect your credit, keep your financial goals on track and recover your credit score.
