charge offs

[Anonymous]

Does it matter if I negotiate a lesser pay-off amount to pay off a CC as far as credit score. I mean, if I pay off the full amount on a card that was 90 days past due or negociate a lesser amount, which is easier to get removed from my credit report? Or does it matter? Or is it possible to negotiate that the CC company takes the negative off your credit report if you pay it off? Has this been done? Thanks

[llecs]

Welcome to the forums!

If you want the CC to come off and if it was a charge-off, then you can negotiate a PFD asking them to remove the entire account in exchange for payment. Per your FICO score, it doesn't matter if you offer 100% or a lesser amount...the TL would come off.

If you don't want it off because it is helping your history, score, etc., then paying anything less than 100% could result in a remark being placed within the comments listed as "settled" or "settled for a lesser amount owed" or something like that. FICO will still read that account as a bad account on par with a charge-off. You could always offer a GW letter to the lender at a later date to get that remark removed. Or you can alter your PFD to not remove the account, but rather remove the lates or CO reference.

What you were referring to was a PFD.

For more info, check these out:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

and What Steps Do I Take - great for learning the repair process.