Bank of America reporting question

[KRAMath]

In 2009, I settled two credit card accounts with Bank of America for less than the amount owed.  I got in over my head, but now I'm rebuilding my credit.  

I understand the accounts will remain on my credit report for seven years, but I do not believe the accounts have been accurately reported.  The status on both accounts with TransUnion show "120 past due."  The account shows a zero balance with a last update made in 12/09.  Should the status remain "120 past due"?

Also, which is better (FICO wise) a status of "120 past due" or "charge-off"? 

Any help and guidance for this weary, credit-rebuilding pilgrim is greatly appreciated!

[guiness56]

A 120 day late is scored just about the same as a charge off.  Both are major derogatories.

It should not state currently 120 days past due but worst delinquency as 120 days past due.

Honestly, since it last reported in 2009 I would not touch it.  In doing so it will update to the current date and make it appear as new and more than likely hurt your score a lot.