Profit and Loss, and NSF checks on a credit report

[cor3ona]

#1 Hello Mrknowitall . Im in the process of buying a house. The lender is requesting for me to pay these account's. First problem is that the account I had with Dearden's (furniture store) is a Profit and loss on my credit report. Now people tell me that it is a charge-off, but it say's profit and loss. Can I have Tran's Union, Equifax or Experian remove it without me paying for it? I think they sold the account to Global Payment Solutions, because when i called Dearden's, they told me that (GPS) was taking care of my account. These are the creditors that were harassing me before.






P.S. Is it better to pay off a late account and have them delete it from the system, or simply pay it off so it could show as a negative balance that was paid in full.

Thank you so much.............

[Mr. Knowitall]

I'm not in a good position to give any specific advice. The "profit and loss" is a type of charge-off, and lenders will want that resolved before they will issue a mortgage. (It means that the creditor, usually a credit card company, didn't deem the debt worth collecting - but that doesn't mean that they can't later try to collect.) I am not sure that having the designation of this particular charge-off changed will affect your lender's position that it should be paid off - you would have to ask your lender.

The other charges appear to relate to each of your three bounced checks, and it would apparently benefit you to have the collection agency verify their basis for those charges and amounts.

If you can get charge-offs removed from your credit report, it will generally be helpful to your credit record. Keep in mind that the only thing worse than a charge-off on your credit history is a bankruptcy.