Glossary term
Goodwill Adjustment
Short answer
A goodwill adjustment is when a creditor voluntarily removes an accurate late payment or other negative mark from your credit report as a one-time courtesy, usually in response to a polite request.
Why it matters
Because the information is accurate, no law requires a creditor to grant a goodwill adjustment — it is entirely up to the company. Requests are more often considered when an account is otherwise in good standing and the late payment was an isolated slip tied to a specific hardship. Creditors are not obligated to respond, results vary widely, and a denial does not mean anything was done wrong. A goodwill request is different from a dispute: disputes are for errors, while a goodwill request acknowledges the mark is correct and simply asks for a courtesy removal.
Example
Priya has paid her card on time for four years but missed one payment during a hospital stay. She sends a short, respectful letter explaining what happened and asking the issuer to consider removing the single late mark as a goodwill gesture. The issuer may agree, may offer nothing, or may decline — all are possible, and the decision rests with the creditor. Because the late payment is accurate, she has no right to its removal, only the option to ask.
Terms used on this page
Guides that use this term
- How to Dispute Credit Report Errors (Bureau Process)What counts as a credit report error, how to file disputes with Equifax, Experian, and TransUnion, and what happens during the FCRA's 30-day investigation.
- Payment History: The Heaviest Factor, ExplainedWhy payment history is the heaviest scoring factor, what actually gets reported as late, how long lates hurt, and how to make on-time payments automatic.
- Goodwill Letter (Free Template)A free educational sample letter asking a creditor to remove an accurate late payment as a courtesy — what goodwill requests can and cannot realistically do.
Educational information — not advice
This page provides general educational information about credit, debt, and consumer protections. It is not legal advice, financial advice, or credit repair services, and reading it does not create any professional relationship. Laws, procedures, deadlines, and dollar amounts vary by state and change over time.
For advice about your specific situation, consult a licensed attorney or qualified financial professional. See our full disclaimer.