What is a Goodwill Letter? Can It Impact My Credit Score? - Episode #19
Goodwill Letters are different from dispute letters but both can impact your credit score. Dispute letters are used to request removal of incorrect information on your credit file. Goodwill letters are asking for “forgiveness” of an accurate item. You are asking a card issuer to forgive a mistake as an act of goodwill for being a good customer the rest of time. You’ve probably done this in your past, when you’ve received a late fee or some charge on something, and you’ve called to ask to get it removed. Similarly, have you ever tried to talk you way out of a ticket? What you are doing is asking for an act of goodwill [unless you can prove you didn't violate the rules].
Your likelihood of getting an act of goodwill depends on your relationship with the credit grantor. Here are a few key things which will impact your success.
1. How long have you had an account with the company? The longer you’ve has an account, the more likely you will get an act of goodwill. For example, a person with a 20 year relationship is likely to get more than a person with a 1 year relationship with a credit issuer.
2. What’s the length of time since the delinquency? This is really important. If you’ve been on time for 2 years, you are probably more likely to get an act of goodwill than if you’ve only been on time for 2 months.
3. How have you maintained your account since the delinquency? It’s no use to ask for removal of a delinquency from 2 years ago, if you have another one or two in the past 2 months.
4. Have you had an goodwill adjustments in the past 2 years? Like most acts of goodwill, getting them again and again is harder. Your odds are better when you are asking for the first time.
Watch the video to learn more. We have a link to a Sample Goodwill Letter in our Resources Section. These are not to be confused with Credit Report Dispute Letters.
Should I Credit Dispute Online or Offline? - Episode #18
Bureaus offer online and offline options to dispute errors in your credit report in most cases but the FTC recommends certified mail. The bureaus probably prefer online disputes as this reduces processing costs for them, but the FTC recommends certified mail probably so you have a paper trail.
We like the FTC’s recommendation, even though it’s not as web savvy. It’s imperative that you have a record of your credit dispute. Credit disputes are work, but they are easier than trying to repair your credit. Credit disputes are usually resolved in 60 days with all the turnaround time, but credit restoration can take many months, even a couple of years. To make sure you keep the window within 60 days — legally the bureaus have 30 days but back and forth adds up — a certified mail receipt is recommended when you send in your dispute letter.
Our sample dispute letter can get you started.