Goodwill letter success! **UPDATE** new scores: EX 782; EQ 764; TU 769 no more baddies!

[sauciefarr]

MyFico does it again!!

I have been on a rebuilding journey for over five years.  Unfortunately, I didn't find this forum until about two years in, but I have received such great information on here --- just had to share this.

After divorce and my company's bankruptcy, I was literally starting from scratch.  No money and my credit was in the toilet.  About six years ago, I got a fabulous job and started that long rebuilding trek.  I had only one derogatory left -- a paid charge-off from a credit union overdraft from January 2015.  After reading and re-reading goodwill letters on here, I sent an email today to the corporate collections office at the credit union.  I did as everyone suggested -- I gave a little bit of background history along with my current situation.  I also printed up a hard copy to send via the post office as a follow-up.

Within an hour, I received a phone call from a collections coordinator at the credit union.  She said that she and her supervisor were touched by my letter.  They did a soft pull on my credit report and determined that everything I stated in my letter was true.  She advised that she has requested that my account be removed from all credit bureaus and I should see the change within 30 to 60 days.  Yippee!  

I really would never have known to send that letter if not for the forum.  Also, I'm going to attach my letter below as a guide for others who may be looking for ideas.  I read many letters posted on here for guidance before sending my letter.  And yay -- I saved a stamp!  

Dear Sir or Madam:

Good morning!  I am a former member of your credit union.  After a divorce and my company's bankruptcy, I relocated to Ohio.  During that time of unemployment, I created an overdraft of $300 on my checking account, which was subsequently closed and charged off in 2015.  I got a great job in Ohio six years ago and have been working diligently to clean up my credit.  My last negative was the $300 charge-off from your credit union, which I paid some time ago.

I'm in the process of trying to buy a house and this one derogatory account is causing a problem with obtaining a mortgage with a premium interest rate.  I understand that it is possible for the credit union to process a "goodwill" removal of this account from my credit report (the charge-off will fall off on its own in January).  I would appreciate your consideration in this matter.  This is the final negative mark on my credit report and is my last reminder of that difficult time.  I would be so grateful if this could be removed from the credit bureaus in order to enable me to purchase my home.  

Thank you so much.

I will follow up and let you know what effect the removal has on my scores.  They currently are as follows:  TU 712; Experian 722; Equifax 734

Thanks again for all of your guidance.  It has been immeasurable!

**Edit** I should add that the credit union did email a confirmation to me for my records.  This is important insofar as I read a lot of instances here where people were told on the phone "we will remove it" but then they never do.  The woman also provided her direct line in case I had any questions or if the account was not removed.  All in all, a terrific experience.

****Update 6/11**** new scores FICO 8 --  EX 782;  TU 769; EQ 764

[dragontears]

@sauciefarr congratulations!

There is no better feeling than getting rid of the last negative information on your reports. Welcome to the "clean" credit score cards.

[sauciefarr]

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@dragontears wrote:

@sauciefarr congratulations!

There is no better feeling than getting rid of the last negative information on your reports. Welcome to the "clean" credit score cards.

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Thank you!  I literally almost burst into tears!  The woman who approved the deletion sent an email so I would have it for my records.  Her business address was on the email, so I sent her a nice plant for her desk.  I'm guessing that someone in the collections/bankruptcy department doesn't get much love!  If not against business policies, I probably would have sent her a bottle of champagne!!

It really does take a village!

[NewMe1120]

Thank you for posting. I just posted an inquiry (NewMe1120) regarding a charge off for late payment fees that is dragging down my credit score. Nothing else derogatory on my report. I called the company and they said via phone they would remove but then they reported it to the CRAs afresh. The last activity was 12/14 so this is due to fall off in December (does anyone know how quickly they actually remove stuff?). Should I wait -- I need a new car NOW or attempt again to have it removed. I made the payments while laid off - just made them late. Ugghhh! 

BUT CONGRATULATIONS TO YOU!!! I AM HAPPY FOR YOUR NEW START. 

[sauciefarr]

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@NewMe1120 wrote:

Thank you for posting. I just posted an inquiry (NewMe1120) regarding a charge off for late payment fees that is dragging down my credit score. Nothing else derogatory on my report. I called the company and they said via phone they would remove but then they reported it to the CRAs afresh. The last activity was 12/14 so this is due to fall off in December (does anyone know how quickly they actually remove stuff?). Should I wait -- I need a new car NOW or attempt again to have it removed. I made the payments while laid off - just made them late. Ugghhh! 

BUT CONGRATULATIONS TO YOU!!! I AM HAPPY FOR YOUR NEW START. 

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Thank you!  Are you able to contact the person that you spoke to on the phone regarding the removal of the derogatory account?  

[Anonymous]

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@NewMe1120 wrote:

Thank you for posting. I just posted an inquiry (NewMe1120) regarding a charge off for late payment fees that is dragging down my credit score. Nothing else derogatory on my report. I called the company and they said via phone they would remove but then they reported it to the CRAs afresh. The last activity was 12/14 so this is due to fall off in December (does anyone know how quickly they actually remove stuff?). Should I wait -- I need a new car NOW or attempt again to have it removed. I made the payments while laid off - just made them late. Ugghhh! 

BUT CONGRATULATIONS TO YOU!!! I AM HAPPY FOR YOUR NEW START. 

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Date of last activity idls not necessarily that same as date of first delinquency. It may age off sooner than you think or and/or you may be able to request early exclusion.

It is best to know exactly when it ages off to determine best course of action. If you could easily get it removed from at least TU and/or EX, then you could at least find a bank that work with one of those bureaus for a loan.

Go straight to annual credit report and pull all 3 reports for free (no scores, but not important). Each bureau shares when the derogatory item will age off naturally. 

TU will list "estimated date of removal". You can request early exclusion 6 months prior to that date.

For example, if it is 12/2021 (only guessing off your date given), then you can call right now (June 1st would have been the first day you could request EE).

EX will list "on record until". They seem extra generous as they age off items at 6y 10m instead of 7y like the other 2Bs. On top of that, you can request EE via calling and asking fir the dispute department (you are not disputing, but that is the department that handles EE requests) 3 months prior to that date.

Example, you have "on record until' date of 10/2021 (based again off date you gave), you could request EE 7/2021. 

EQ is dangerous. My strong suggestion is to avoid EE with them and you can find a bank that uses one of the other 2 bureaus. Regardless, the report lists "date of first delinquency" (not the also listed "major delinquency first reported"). Add 7 years to that date. EQ will naturally age the derog off a month or so prior to that date.

Otherwise, if it still too far out for some reason to get EE, try getting ahold of who promised you the deletion.

[Anonymous]

Really nice story about your goodwill! Congrats on this huge win.

[sauciefarr]

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@Anonymous wrote:

Really nice story about your goodwill! Congrats on this huge win.

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Thank you! My Experian score went up 60 points today to 782.  I will update when the other scores reflect the removal. 

[Anonymous]

Congratulations!