How is my credit score impacted by paying a charge off?

A collection agency will often offer a settlement for 20-40% of the original balance as a typical agreement; however, a “PFD” (Pay for Deletion) settlement will come at a much higher cost.

Collection agencies will typically demand between 60-100% of the debt to negotiate deletion of an account. This is a major benefit for the collection agency because they have not incurred any additional costs for this type of negotiation.

Finally, under no circumstances should you ever expect that a creditor or collection agency will agree to anything less than 100% payment in full if they know that you are in the process or planning to buy a home. Therefore, prudence suggests that you keep this little tidbit to yourself otherwise you may not like the outcome.

Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183