Is it better for your credit score to pay a settlement or to pay the full balance on a charged off account?

Is it better for your credit score to pay a settlement or to pay the full balance on a charged off account?

I owe $865 on a charged off account but the company has offered to settle the account for $515. Is it better for my credit report to pay off the full 865 or to pay the settlement

The Answer : The only win-win situation in your case is that if they'll settle for $515, in return that it will get removed from your report. I would strongly suggest pushing for that. It's a possiblity that they may do it, then again they may not, or they may require the full amount in order to do it. If you're able to get them to do it, don't send a dime until you receive something from them in writing on their company letterhead stating they'll remove it.

Or : You should be ok if you pay the amount they are willing to settle for. It's already been reported to credit, so the damage is done. Paying the whole thing off is not going to be any better than paying the settled amount.