Originally Posted by Steve Smith
I am not an expert on this, and you need to do some research to find out for certain whether this is correct: Contact them and negotiate a payment in full with the agreement that they will delete ALL reporting of this account to the three credit bureaus. I think the term you are looking for is "pay for delete". Get it in writing before you do it. If they won't do that, then you are better off paying it anyway because as the bad history ages your score will improve.
This. Get everything in writing....stay off the phone! Do you have proof of your negotiation at the time of cancellation 2 years ago? Do NOT pay them right now. Whether paid or unpaid, it has the same negative affect on your report. It will drop off 7 years from the date of your last delinquency and, as Steve says, the older it is the less affect it has on your score. Is this in the collection segment or installment/credit section. That has a huge bearing on how to approach the situation as well. Is it on all 4 or what combination thereof (TransUnion, Experian, Equifax, Innovis)?