Letter to creditors explaining late payment


  1. Acknowledge your default on the payment.
  2. Explain the reason you couldn't make the payment on time.
  3. Reassure your creditors that you will make the payment as soon as possible.


[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-

Dear [Recipients Name],

I understand that I have defaulted payments for the past two months and that you have sent a couple of reminders to my residence.

However, you should know that I had to travel on an emergency as I had a family funeral to attend. After which, one of my relatives felt terribly sick, and I had to stay back to attend to her.

However, everything is fine now, and I am back home. I will clear all your payments due by the end of this week. Thank you for being patient.


[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -

Letter to creditors explaining late payment.

Further things to consider when writing goodwill letters to creditors

Further things to consider when writing goodwill letters to creditors

Goodwill Letters

Goodwill letters are letters you write to your creditors asking them to repair your credit report. As the name suggests, the objective of these letters is to ask the creditors to "forgive" a mistake you have made. Whether it is to remove a negative listing or late payment fees, creditors can remove any negative information from the credit report restoring it to good standing. May be you have encountered a technical error while processing your payment. Perhaps you have an excellent credit history and made one mistake. Goodwill letters can help fix your credit report in all these scenarios.

Just like any other letters you send to your creditors, goodwill letters should be kept short and simple. Mention the account you would like to be updated as well as your positive payment history. Be courteous, apologetic, and clearly explain what went wrong. Let the recipient know that you are requesting to take off a mistake from your credit history and give reasons as to why you are asking him/her to do so. At all cost, avoid blaming or accusing the creditors. End by reassuring the recipient that this type of default will not occur again in the future.

Letters to Creditors

Letters to creditors are letters written to people or companies to whom money is owed. A creditor can be a bank, person, or any financial institution. If you have got some debts, you will definitely find yourself writing letters to creditors at some point. They could be inquiry letters to request information about your debts, cancellation letters to cancel credit agreements, or inform letters to inform the creditors of changes in the payment methods. Letters are a great and powerful tool to use when communicating with your creditors. They can help you to handle tough issues and protect your rights.

When writing letters to creditors, you need to make sure that you have all the required information. Address the letter to the appropriate person and use the right salutation. State clearly why you are writing the letter. Provide important details such as your contact and account information - you can reference this information before the body of the letter. If you had called the recipient regarding the issue, mention that in the letter. Mention other documents enclosed with the letter if any. Be brief and maintain a professional tone. Finish with your full name and signature.

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