While I know no one who has done this, and therefore can't personally vouch, the internets are telling me the following:
"You can ask the current creditor — either the original creditor or a debt collector — for what’s called a "goodwill deletion.” Write the collector a letter explaining your circumstances and why you would like the debt removed, such as if you’re about to apply for a mortgage. There’s no guarantee your request will be accepted, but there’s no harm in asking. A record of on-time payments since the debt was paid will help your case. Your credit record will still show the late payments leading up to the collection action, but removing the collection itself takes away a source of score damage."
It feels like a bit of a long shot, but if you pay the debt off, you've little to lose by sending them a letter asking for removal. Even if it only works 50% of the time, you'll be in a significantly better position.
Thoughts?
