Did you know that payment history makes up roughly 35% of your client’s total credit score?
That’s right, lenders consider late payments a big red flag under the premise that the client won’t pay them on time either.
In fact, most credit card companies periodically pull their card holder’s credit every so often as a soft inquiry to see if they were late with other accounts or to see if there are signs of financial difficulties with other creditors.
If so, they may lower the available credit line or even increase their interest rate, even if your client has never been late with them on a payment. This highlights the importance of educating your clients to never be late with any creditor.
But what happens if your client suddenly fails to make a payment on time and their long-term payment history is gone?
This article walks you through exactly what you need to do to dispute the late payment.
What Is A Goodwill Intervention In Credit Repair Disputing?
Life happens and sometimes it gets so chaotic that a client forgets to make a payment on time. It happens to the best of us. Maybe the mail was lost through no fault of their own, or layoffs happened, or an emergency medical situation or even COVID caused a payment to have to be pushed past the due date.
Whatever the reason, your client doesn’t have to live with the consequences of a late payment forever.
There are options. You may be able to get the late payment or payments removed with a little bit of creativity and empathy. This process is called a goodwill intervention.
Why Is A Goodwill Intervention Important In Credit Repair Disputes?
- A goodwill intervention is a request, not a demand. You are essentially asking the creditor to remove the one or two late payments in return for a promise to make payments on time in the future.
- Goodwill interventions may only work on OPEN accounts. If the account is closed, you may want to simply work towards removing the entire account, (not just the late payments) because a goodwill intervention is based on previous stellar payment history.
- This strategy only works if the account is CURRENT, meaning there is no past due amount. Basically, if you were the creditor and your customer asks you to remove late payments on an account that is past due, you're not even going to consider it until it’s current.
How Do You Complete A Goodwill Intervention?
If your client has an OPEN and CURRENT account that’s always had a great payment history and suddenly had one or a handful of late payments, these are the steps you can take for a deletion:
- Either use our “Letter Finder” feature or visit the letter library within your Credit Repair Cloud and search for “goodwill”. Here, you’ll find several variations of the letter. Use the one that suits your situation the best.
- Next, make sure you have a really good excuse. A goodwill deletion letter works by sending it to the creditor asking them very nicely to remove a late payment. Try to have a great story, a tearjerker or something that moves them. Maybe your child was born that month, maybe you were hospitalized, or your family was affected by COVID. Bottom line, it must be something really, really difficult that made you suddenly unable to pay.
- You are asking for a favor. Be very, very nice and if the main customer service address doesn’t respond, try sending it to various departments or individual people within the company.
If these late payments are really hurting your client, and you’re really serious about doing everything you can to remove them, go the extra mile.
Google the company or use LinkedIn to find the CEO, VP, managers, directors or literally anyone you find with contact information and send a separate letter directly to them.
Remember, life happens, but it doesn’t have to haunt your client’s credit for years to come. As long as you really put in the effort, go the extra mile, use a bit of creativity, and strategically apply pressure - you’ll be amazed to see that more often than not, you get the results your clients need. Furthermore, they’ll love you for it!
What happens when you get clients results they love?
They tell everyone and in turn, your business grows. A great example of this success through word of mouth is our Millionaires Club Member, Tracy Arnett.
Tracy started by repairing his own credit, then began working to fix his family’s credit. Soon, he had so many people asking for help that he had to hire his family to help him launch and run his credit repair business.
To this day, his multi-million dollar a year business runs off of referrals!
To learn more about Tracy’s story, check out this fun podcast interview where he breaks down how his strategy works and what he does.
But remember, growing your credit repair business is really pretty simple - master your craft, get great results for your clients, and let them sell your services to everyone they know!
You’ll grow with the best of em’ and who knows?... Someday, you could be right here on our wall of fame with the rest of our Millionaire’s Club Members!
If you’d like to scale your business to become a multi-million dollar a year company, join our next Credit Hero Challenge. You’ll have access to live coaching, daily lessons and action points, and will get all the information you need to launch your profitable credit repair business. You’ll even get 3 certifications. Just go to creditherochallenge.com to sign up today!
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