Yet another question about credit, but this one involves negotiated settlements.

Quick question for all the credit knowledgeable people here. Years ago (around 12/2006) I had one credit account that was settled for less than what was owed and another account that was a charge off. My credit score is back into the 700’s, but in reviewing my history it still shows these as negative factors affecting my score.

Recently I disputed one of the accounts that had a few errors and when it was reported back to the credit bureaus, it dropped my score into the upper 600’s. This was a drop of over 30 points. They updated a few things besides just the errors I had requested to be reviewed.

I got to thinking and decided I would give the two companies a call to inquire bout making the accounts good by paying off the amounts that were charged off or negotiated. The amounts are very low ($100 and change on one and $200 and change on the other one). When I spoke with one company I was told that it would reflect paid in full on the account but that the 7-year clock would reset. I view this as being penalized twice when all I’m trying to do is make good on the amount I owed back when I was an idiot about credit. I would pay it off today if the dates would remain the same meaning the negative marks would be removed by 2013. However, I’m not going to be penalized with a 2018 date for trying to make good on the accounts.

So here are my questions. In this situation would you pay off the debts and ask for letters that show the amount was paid and that the accounts can be updated accordingly, or should I just not worry about it and let the accounts be purged in 2013. I want to make this right, but I also don’t want that timer to start over. Is there anything you guys know of that could help me convince them not to reset the clock once the amounts are paid in full? I know this isn’t the OT, but yes I was an idiot back then when I negotiated the settlement for such a low amount. However, I want to make this right by taking care of those previous responsibilities. Thanks for the help…