How to pay off closed accounts?

[Anonymous]

OK, I have 2 cards that MBNA (now BofA) closed in 2005 due to major delinquencies. I set up a repayment plan but due to limited income I'm currently 120+ behind on both.  The outstandng balances ($8K & $11K) are being reported with $0 available credit and it is killing my scores.

In a month or so I will be able to pay off the cards in full.  Would it help my score to bring the payments current before completely paying them off?

My second question is: How should I use the payoff to my best advantage?  I'd like to GW BofA, but others here seem to have little or no luck with that.  What about a full payoff in exchange for them not having any communication with CRAs again?  Is that the best option, or is there a better way?

[Creditaddict]

when you have the money in your hands, I would call and ask them if they will update reports to say paid as agreed $0!

Until you are ready to deal though, probably not worth the call.

[Anonymous]

Paid as Agreed?  Doesn't that just mean that I paid it off? 

I want to get rid of the multiple months of 120+ on my CR.  What's the best way to do that?

[haulingthescoreup]

That's what Creditaddict meant. It's called PFD, Pay for Delete. If you can get the full money that you owe, you call and say, "I'm willing to pay these off now, if you will agree in writing to cease reporting the lates to any and all credit reporting agencies." (etc)

Check at the top of General Credit Issues, Rebuilding Your Credit, or Understanding FICO Scoring for a stickied thread called "Frequently Requested Threads." There are several about PFD's.

Some companies will do this, others won't. Good luck!

Moving to Rebuilding Your Credit.

[Anonymous]

paid as agreed (payed as agreed, on time, etc.) would get everything removed