topic Re: GoodWill vs Installment loans? in Rebuilding Your Credit

GoodWill vs Installment loans?

DonFico — Sun, 18 Nov 2018 17:42:21 GMT

I'm hoping someone can clear something up before I sent a GoodWill letter. I'm under the impression that banks and credit companies must report correct data to credit reporting agencies. With this being the case, how are GW letters legal or reported in the case of installment loans? That is, if I was 30 days late on an auto loan little over 2 years ago, and then was current for two years after the fact (car is paid off now), would the bank report my late month as being paid even though it wasn't if my GW letter is accepted?

Re: GoodWill vs Installment loans?

Anonymous — Sun, 18 Nov 2018 18:52:04 GMT

What they usually do is just delete the reporting for that month, so it’ll say “no data”. The rules are, if information is reported, it has to be reported accurately. By deleting missed payments this way, it effectively looks like nothing was reported in the periods in question. The result is that your score is driven only by the reported months, which would all be positive, and thus it’ll be a perfect payment record.

Re: GoodWill vs Installment loans?

DonFico — Sun, 18 Nov 2018 19:09:02 GMT

Makes sense. TY