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Best way to handle a Discover Card "Closed-Derogatory" sent to collections/charge off.
I've searched and read many posts similar to my question, but none that really answered my question.

I have a Discover account that was closed-derogatory/charge-off on 3/20/2012. Last date of activity was 8/8/2011. Balance due is $4,054. I called for information regarding the status or the account last week and was told the debt is being handled by a collection agency (I apologize, but I don't know which agency. My notes from the phone call are at the office.)

I am in a much better situation now financially than I was in 2011-2013, and am trying to clean up the derogatory marks on my report. This Discover account is the final blemish. I am planning to purchase a home in 5/2017. I live in NC and will be buying a home in NC. CreditKarma score is 713/704 currently.

Is the best thing I can do to pay the whole debt in full? Should I negotiate a smaller payoff? Obviously, my first goal is to meet the demands of Discover/Collection Agency, but my next goal is to 1) remove any kind of negative language on my credit report, and 1b) spend as little as possible to meet those requirements.

If I negotiate a smaller amount to pay to clear the account, can I realistically expect to the collections agency to clear off the derogatory language? And what is the best I can ask for in terms of removing the language - that is, if they won't completely remove the account from my report, is there a next best thing to ask for? and something after that?

Also- After I meet the financial demands of the collection agency, do I inquire with the collection agency or Discover on the language on my credit report?
Thanks for any/all your help.

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