I am jointly liable (along with a company) for a business credit card that hasn't been paid since the small business went under. I have spoken to the bank about this, and they informed me that the account was over 120 days past due, and that it will be charged off at the end of this month (Oct. 2008). The lender has been reporting negatively for the past 3 or 4 months. After multiple conversations with the credit card company's internal collection people, I have gotten absolutely nowhere in trying to get them to remove any negative information they have reported. They keep saying that they are bound by laws... or that they are required to negatively report on both the business and my personal credit. I asked for a settlement option, getting the payment from me, but only if they don't report any negative history to my personal credit. They simply can't (or won't) do it. They did, however, give me the address for the correspondence department... Here's my dilemma: I have about $5.5k that's owed, and they will take a settlement of about half that, but I will still get an R5 reporting from them. If I wait until the account is charged off, I'll get an R9, and still have to deal with the collection agency. I don't know too much about all this, but I think I can overcome an R5 much sooner than an R9, assuming all I do is continue to make on time payments. Here's my question: Do I take the settlement offer, and try to get the bank to remove the negative reporting (late payments and R5), or do I just let it go to collections and fight them (and the R9)?