Deragitory's! We have all seen them time and time again. I can't tell you how many times a day I hear "But I paid that off last year. The collection company said it would not be negative on my credit report anymore." Fact is when you pay a derogatory it becomes a paid derogatory on your credit report and it does not go away. It will still negatively impact your score. It in a small way will help your DTI but not near as much as if it went away all together. I would not pay a charge off account until the collection company gave me something in writing saying it will "not" be reported as derogatory on my credit report. You would be surprised what they will do when you offer to pay the debt. By getting this in writing it prevents the company from reporting at all. A paid derogatory is still a derogatory. You send a copy of that letter along with the account numbers to each reporting agency and they will take it off of your report. Hope this helps someone!
Note: I would never tell anyone to not pay there bills but bad things happen to good people. Nobody should be made to suffer the rest of there life. God bless!
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