How to Write a Letter to Remove a Negative Item from Your Credit Report

Having negative items like late payments or collections on your credit report can seriously drag down your credit score. One way to potentially get these removed is by writing a letter to the creditor or collection agency requesting that they delete the negative mark in exchange for payment or as a goodwill gesture Here’s what you need to know about how to write an effective letter to remove negative items from your credit report.

What Are Negative Items?

Negative items refer to any information on your credit report that reflects badly on your creditworthiness The most common negative items include

• Late payments – Paying 30, 60, or 90 days past the due date on a credit account.

• Collections – When an overdue account gets sent to collections, it shows up as a separate negative item.

• Charge-offs – After several months of nonpayment, a creditor may “charge off” the debt as a loss, which damages your credit.

• Bankruptcies – Declaring Chapter 7 or Chapter 13 bankruptcy stays on your report for 7-10 years.

• Foreclosures – Losing a home to foreclosure is a major red flag to lenders.

• Tax liens – Failing to pay taxes can result in a lien against your assets.

• Judgments – If you lose a court case over unpaid debt, it can lead to a judgment against you.

• Repossessions – Having a car or other asset repossessed for nonpayment will show up as a negative mark.

Any of these derogatory marks can negatively impact your credit score as well as your chances of getting approved for new credit.

Should I Write a Goodwill Letter or Pay for Delete Letter?

There are two main types of letters you can send to request removal of negative items:

Goodwill letters appeal to the creditor’s goodwill, asking them to forgive the error and remove it as a courtesy. These are best for situations like:

• A past hardship caused you to miss a payment.

• You’ve had a long positive history with the creditor.

• It was a one-time slip-up and you’ve been current since.

Pay for delete letters offer payment of the debt in exchange for removal of the negative item. These make sense when:

• You still owe the debt and can pay it.

• The account is with a collection agency you can negotiate with.

• You need fast credit improvement and can afford to settle it.

Only send a pay for delete offer if you can really pay. Don’t make an offer you can’t fulfill.

How to Write a Goodwill Letter

Here are some tips for writing an effective goodwill letter asking a creditor to remove a negative mark:

• Review your credit report – Verify the details like the date, account number, status, etc.

• Note specifics – Mention the specific late payment(s) or other negative item(s) you want deleted.

• Take responsibility – Own up to the mistake and acknowledge it damaged your credit.

• Highlight your history – If you had a long positive relationship with positive payment history, point that out.

• Explain the circumstances – Detail the hardship or situation that caused the issue. Medical bills, job loss, family emergencies can help elicit empathy.

• Show you’ve recovered – Provide evidence you’ve gotten back on track financially if relevant.

• Ask directly – Politely request that they remove the negative item as a goodwill gesture.

• Say thanks – Express your appreciation for their consideration and thank them for their time.

Here is a goodwill letter template you can customize:

Date

Creditor Name
Address

Regarding: Account #XXXXXX

To Whom It May Concern:

I am writing to request a goodwill adjustment on my credit report. I have been a loyal customer of your company for XX years. Unfortunately, explain the circumstances that led to the negative item.

I regret this oversight and take full responsibility for it. However, it does not reflect my commitment to honoring my financial obligations. If relevant, note your on-time payment history.

The negative mark on my credit is damaging my credit score, which affects my ability to get a loan, rent an apartment, etc. I would be very grateful if you would consider removing the late payment/collection/etc as a courtesy based on my long history with your company.

Sincerely,

Your name

Be sure to send the letter to the creditor’s dispute address and keep records of your request. Follow up if you don’t hear back within 30 days.

How to Write a Pay for Delete Letter

If you have outstanding debt in collections, you may be able to negotiate pay for delete. Here are some tips on how to do this:

• Review your credit report – Verify the collector’s name, address, and account details like the amount owed.

• Make a reasonable offer – Offer to pay a lump sum that is attractive enough to entice them to agree.

• Clearly state your request – Ask them to delete the account from your credit reports with Equifax, Experian, and TransUnion in exchange for payment.

• Put a time limit – Give them a deadline, such as 30 days, to agree before your offer is withdrawn.

• Require written confirmation – Insist on a written agreement from them before sending payment.

• Pay via trackable method – Once they agree, pay by certified check or money order you can trace.

• Keep records – Retain copies of everything including your letter, their agreement, and proof of payment.

Here is a pay for delete letter template to adapt:

Date

Collection Agency Name
Address

Re: Account #XXXXXX

To Whom It May Concern:

I am writing to offer a good faith payment of $[amount] in exchange for permanent deletion of the above-referenced account from my credit reports with Equifax, Experian, and TransUnion.

Upon receipt of that payment, I ask that you:

• Delete all references to this account from my credit reports

• Mark the account as paid in full rather than as a settled or paid collection account

Please note this offer is only valid for 30 days. If you agree to my request, please send written confirmation on company letterhead signed by an authorized representative. I will then send a money order for the agreed upon amount.

Thank you in advance for your cooperation and assistance in resolving this matter.

Sincerely,

Your name

As with goodwill letters, be sure to keep detailed records of all correspondence and payments. Send your letter to the collection agency’s address listed on your credit report.

Following Up on Your Letter

Whether you send a goodwill letter or pay for delete request, don’t just sit and wait after sending it. Follow up with the creditor or collection agency if you don’t receive a response within 30-45 days.

You can call to verify they received the request and check if they need any other information from you. If they approved your request, ensure they processed the removal as agreed. Politely restate your request if they rejected or ignored your initial letter.

Persistence pays off, so continue sending letters and calling every 30 days until you get a definitive answer. Document every communication.

What to Do If Your Request Is Denied

If the creditor rejects your request to remove the negative item, you still have options:

• Ask why – Find out exactly why they denied your request.

• Offer to settle – If you can’t pay in full, offer a lump sum lesser amount to settle.

• Dispute errors – If there are factual mistakes in the account details, dispute them.

• Validate the debt – Send a debt validation letter requiring them to verify they have the right to collect.

• Wait it out – Accounts typically drop off your credit report after 7 years.

• Hire help – Turn to a credit repair company to advocate on your behalf.

Even if your first attempt fails, you can send additional letters and continue to follow up. Be persistent and don’t take the first “no” as a dead end.

Sample Goodwill Letter

January 1, 2025

ABC Credit Card Company
123 Main Street
Anytown, CA 12345

Re: Account #12345678

To Whom It May Concern:

I have been an ABC credit card holder for over 10 years. Unfortunately, I missed a payment on November 1, 2024 due to unexpected medical bills from a hospital stay.

I regret missing this payment and take full responsibility for it. However, it does not reflect my strong history of on-time payments with your company. I have always paid my bill in full by the due date except for this one occasion.

This late payment is negatively affecting my credit score. I would be very appreciative if you would consider removing the November late payment from my credit report as a courtesy based on my long positive history as a cardholder.

Sincerely,

Jane Doe

Sample Pay for Delete Letter

February 1, 2025

XYZ Collections Agency
456 Main Street
Anytown, CA 12345

Re: Account #7654321 with ABC Credit Card Company

To Whom It May Concern:

I am writing to offer $200 as full settlement of the outstanding balance above in exchange for permanent removal of this account from my credit reports.

Upon receipt of that payment, I ask that you:

• Delete all references to this debt from my credit reports with Equifax, Experian, and TransUnion.

• Mark the account as “paid in full” rather than as a settled or paid collection account.

Please send written confirmation of your agreement within 30 days. Upon receipt, I will mail a certified check for $200 to resolve this account.

Thank you in advance for working with me to resolve this outstanding debt and improve my credit standing. I look forward to your reply.

Sincerely,

Jane Doe

The Bottom Line

Removing negative information from your credit reports takes some persistence, but it can be done in some cases. Sending goodwill and pay for delete letters on the right types of accounts gives you a legitimate shot at getting them deleted. Just be sure to follow tips for writing an effective letter, and don’t give up too easily if your first attempts are rejected. With a professional approach and some patience, you may be able to remove the negatives holding back your credit.