Good or Bad Settlement?

[PLI21403]

Hi all -- I am attempting to settle a debt with First Premier Bank (revolving credit). The outstandig balance is $434. I originally sent a PFD letter but it was declined, being told they fully report to CAs. Next, I sent an offer to settle for $211 (slightly less than 50%). Today, I recieved a letter that states:

"Upon cpmpletion of this settlement, we will report to the consumer reporting agencies that this accout is a chage off and has been settled, which means the accout has been paid in ful for less than the full balance. If we do not recieve your payment of $261 by 5/8/2015, this offer will be void, and you will b responsible for the entire remaining accoutn balance."

I am not worried about First Premiere coming after me for the amount - but I do want the most favorable outcome that will improve my credit scores. 

My question is this -- should I take the counter-offer, or should I go ahead and pay the full amount so that it is recorded as paid in full and doesn't show it having been settled  for less?  Or does it really matter at all? 

Thanks!

[gdale6]

The amount its settled for doesnt really matter. If its updating monthly settle it to stop the reporting and the possibility of a collector becoming involved.

[RobertEG]

Settling will result in discharge of the debt.

However, if the creditor accepts a settlement for less, they have the option of reporting settled for less.

That is significant, in that it informs other prospective ceditors that, in the past, you did not fully pay your obligated debt.

The implication to them is that if you repeat that prior pattern, then lending to you could result in a loss.

Settled is never a favorable comment in your credit report.

As to how it might affect new credit, that is up to the reviewing party in their manual review.......

You could counte-offer to settle for the offered amount, with the additional condition that they not report settled for less.

Your credit report would then appear the same in any manual review as if you had paid in full.