In the current economy, more than ever before, having a good credit score is essential. Credit scores determine whether a bank will issue a loan, the interest rate on a loan and even the size of the loan. Credit scores are affected by a number of factors, not the least of which is the timeliness with which repayments are made. Late payments to a creditor can strongly influence a credit rating in
. the negative direction. Late payments also result in service charges, fees, increased interest, and higher payments during the next billing cycle.Unfortunately, it is not always possible to make payments to creditors on time. The economic downturn has resulted in high rates of joblessness and decreased wages, making payments difficult at best. In the event of a late payment, it is advisable to submit a letter of goodwill to the creditor. These letters ask the creditor to, in effect, ignore the late or missed payment on the basis of being a good customer in the past.A sample goodwill letter can be viewed at http://bettercreditblog.org/sample-negotiation-letters. As the authors of this website note, it is important that a goodwill letter be personal and reflect the present situation. Therefore, sample letters should not be sent in without editing for such reflection.There are several key aspects of an effective goodwill letter. First and foremost, the letter should be formal and respectful in tone. Secondly, the letter must include both the date and the amount of the late or missed payment. Lastly, the letter should explain the current circumstances in light of why a removal would be beneficial.No one letter will fit every situation and the letter sent should reflect a personal hardship in the past in explanation for the late or missed payment as well as the present circumstances necessitating the removal for, principally, credit score reasons. There are numerous webpages on the internet which provide sample letters from which an appropriate letter can be drafted.More reference links: http://www.creditinfocenter.com/forms/sampleletter8.shtml. http://www.treesfullofmoney.com/?p=1908
