THE NO JOB LIFESTYLEWho controls what
- Lenders and servicers: also called furnishers. They own the account records and decide what they send to bureaus. They can update a record.
- Credit bureaus: Equifax, Experian and TransUnion store the data and sell reports. They must investigate disputes and follow accuracy rules, but they do not grant favors on accurate data.
- Collection agencies: they furnish data about accounts they collect. They may agree to change what they report, though they have no duty to do so.
This means a goodwill letter to a bureau asks the wrong party. The bureau has no account relationship with you, and no reason to overlook an accurate late payment.
The right letter for each situation
If the record is correct but you want mercy, write to the lender. Explain what happened, show your record since then and ask for a courtesy adjustment. The lender may refuse, but it is the only party that can make this choice.
If the record is wrong, file a dispute with the bureau. Under the Fair Credit Reporting Act, the bureau must generally investigate within 30 days and pass along your evidence to the furnisher. You can also dispute with the furnisher directly. Do not call an accurate late payment wrong simply to trigger the process. Keep your claims true.
Finding the correct address
Look at the account on your credit report, which lists the furnisher's name and usually its address or phone number. The address on your bill may be for payments only. For large banks, check for an executive customer relations office on the website, or call and ask where to send a goodwill request. Credit unions and smaller lenders often let you speak with a manager.
If the loan has been sold or moved to another servicer, write to the current one and copy the prior one if the late mark came from their time. A debt in collections may need a letter to the collector or the original creditor, depending on who is reporting.
What to do after writing
Keep copies of what you sent and note the date. Follow up in about 30 days. If the lender agrees, ask for written confirmation and allow one or two reporting cycles for changes to appear. The lender would send the correction to each bureau where it reports, so check all three at AnnualCreditReport.com. You should not need to write the bureaus yourself.
If a bureau does not reflect a change the lender confirmed, then a bureau dispute makes sense, and you can include the lender's letter as your proof. That is a case where the bureau has a duty to correct its file, and where the letter you send to it can make a real difference to the outcome.
Other tools the bureaus do offer
You can add a short consumer statement of up to 100 words explaining a mark, but it does not change your score, and many lenders never read it. Bureaus also provide fraud alerts and free security freezes, which help if your identity was stolen, but neither of them affects accurate history.
Questions people ask
Will a bureau ever respond to a goodwill letter?
It may reply with a form letter or treat it as a dispute. Either way, it is unlikely to remove accurate data on that basis alone.
Can you send copies to a bureau?
There is no need, unless the lender has confirmed a change and the bureau has failed to update your file.
What is a goodwill letter to a creditor?
It is a polite request asking a creditor to adjust an accurate negative mark as a courtesy, normally after a single slip on a good account.