Updated: Jul 28
Learn about the powerful tool of goodwill deletions and how they can help improve your credit score. Discover how to request a goodwill deletion and what to do if your request is denied.
What is a Goodwill Deletion and How Can it Help Your Credit Score?
If you've been struggling with a low credit score, you may have heard of a "goodwill deletion" as a possible solution. But what exactly is a goodwill deletion, and how can it help improve your credit score?
A goodwill deletion is when a creditor or lender agrees to remove a negative item from your credit report as a goodwill gesture. This can happen if you have a history of on-time payments and a good relationship with the creditor, despite having one or two late payments or other negative marks on your credit report. By removing the negative item, your credit score may see a significant boost.
How to Request a Goodwill Deletion
If you think you may be a candidate for a goodwill deletion, there are a few steps you can take to request one. First, gather any evidence you have that demonstrates your good payment history and positive relationship with the creditor. This may include copies of your payment history, letters of recommendation, or any other relevant documents.
Next, write a letter to the creditor explaining your situation and requesting a goodwill deletion. Be sure to emphasize your good payment history and positive relationship with the creditor, and express your gratitude for their consideration.
Finally, be patient and persistent. It may take several attempts to get a creditor to agree to a goodwill deletion, so don't give up if your first request is denied. Keep sending letters and making phone calls until you get the desired result.
What to Do if Your Request is Denied
Unfortunately, not all creditors or lenders will agree to a goodwill deletion, even if you have a strong case. If your request is denied, there are still other steps you can take to improve your credit score.
One option is to negotiate a "pay for delete" agreement. This is when you offer to pay off the debt in exchange for the creditor or lender removing the negative item from your credit report. While not all creditors will agree to this, it's worth a shot if you're struggling to get a goodwill deletion.
Another option is to focus on building up your credit in other ways. This may include making on-time payments, paying down debt, and being responsible with your credit usage. Over time, these positive actions can help outweigh any negative marks on your credit report and lead to an improved credit score.
A goodwill deletion can be a powerful tool for improving your credit score, but it's not a guarantee. If you think you may be a candidate for a goodwill deletion, take the steps outlined above to request one. And if your request is denied, don't give up – there are still other ways to improve your credit score and achieve your financial goals.