While approaching your credit rebuild, writing a persuasive goodwill letter might not be the most sexy tactic but it’s the most important. The goodwill process is the process of asking for a trade line removal after an account is paid. So much time is spent attacking negative items with disputes, but often better results happen through goodwill.
Writing a Persuasive Goodwill Letter.
Goodwill letters take effort, patience and luck. There is no right or wrong approach. While one may be tempted to use a template off the internet, there is far more value writing the personal story from scratch. Paying off the debt will allow you to have far better luck with removing through the goodwill process.
The Process is Fluid.
If you search the web, you will find all sorts of opinions on the goodwill process. One of the legacy (and frankly, outdated) opinions is you will need to send these sorts of letters through the US Mail. Others will say you need to send these certified. Neither is true. In 2021, writing a a persuasive goodwill letter can be as simple as sending a well crafted tweet. It really comes down to the message, the messenger, and the recipient.
Pay the Debt.
It is amazing how this part of the process is often ignored. Why would any creditor would work with a consumer when the debt is still outstanding? The exception would be charge offs or sold debt, but those are difficult to remove with a goodwill letter. It is not impossible, so I would focus on those accounts last. Getting wins feels good, but the rejection still feels lousy.
You will also have better luck if the account is paid in full. If it is a small debt, avoid haggling and negotiating and pay it off. It will benefit you during the goodwill process. Paying the debt in full will grant you the ability to craft sentences that showcase responsibility.
- “I paid this debt in full, without haggling, because I knew it was the right thing to do.”
- “I paid this debt in full as soon as I was able to.”
- “With respect to the debt, I made sure I paid this down the moment I had available income”
Keep it Personal (Or Don’t)
I prefer to keep goodwill letters to succinct and to the point. Using facts and data to prove the case. This will keep the letter from becoming too long or meandering.
- I was unable to pay due to a specific reason.
- I have been working on rebuilding my credit.
Use the FCRA.
The collection company knows the law. Show them you do as well. One of the hallmarks of the FCRA is that accuracy is paramount. Use this to your advantage! While it is true that MOST collection companies will not want to report something incorrectly on purpose, there is nothing that prevents them from removing. It is in the law, and make sure they know that.
- “While the FCRA governs how my account reports, it does not state that all debt must report. The FCRA allows companies to remove information, and I hope you will consider this in my case.”
- “Please consider that the Fair Credit Reporting Act does not demand all accounts be reported, only that any account that is reported be reported accurately. Therefore, a company does have legal discretion and permission to remove any account it chooses from the credit report.”
With a little effort, anyone can craft a well intentioned, well written goodwill letter!
