rockyrock wrote:With all that said, by paying it off you could keep it on your report longer. The most important part of the negotiation process with the collector is that they remove the entry from your report. Call them and negotiate a (reduced) payoff AND removal from your CR. Get it in writing in the form of a letter for your records in case you need to dispute it.
I dont think it stays on longer if you pay it off. I had a debt with Chase for 9k and it had been on my record for ~5 yrs. By the time I was able to pay off the debt to the debt collector (who bought the debt from Chase), the balance had already ballooned to 14k off the ridiculous interest that the collection agency had been charging me for since they bought the debt. I was able to settle for 6k I think and it showed up on my report as Paid. And then it fell off eventually after the 7 yr period.
But if you're still applying for cc's, the creditor is going to notice the Unpaid status. The chargeoff is on the report but the derog is shown as paid and that would still be taken into account. If you are going to settle, make sure you make copies of everything. I even made a photocopy of the cashiers check I mailed to them. The faster you pay it off, the faster you can start rebuilding your credit. I didnt want to wait another 2 yrs for it to fall off and wanted to qualify for a low card so that I could start rebuilding credit.
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