How is my credit score impacted by paying a charge off?
Another way to remove an unpaid charge-off is to contact the original creditor and arrange a payment plan in exchange for them removing the charge off once it is paid. The success rate of this strategy is hit or miss, but it won’t hurt to ask how it can be resolved or removed. Depending on the creditor, this can be a great way to get an instant increase to a credit score and permanently remove a derogatory item. But before agreeing to any repayment, made sure to get the terms of the agreement IN WRITING!
Creditors and collection agencies are well aware of the ramifications negative items have when reporting on a credit report, they understand the benefit to a consumer if an item was deleted rather than being marked “Paid Derogatory.” Due to the obvious benefits, collection agencies will take advantage of this opportunity to create additional revenue.