Any time a debt has been legally settled, regardless of whether the creditor accepted the full amount of the debt or a lesser amount, the debt is settled.
The current status reflected upon settlement of a debt is the same. It is paid. Current status does not reflect any terms of settlement. So you current status will read paid either way. Paid is settled, if the creditor accepts that the debt is discharged. They have no option, so it is not something you need to request.
\When a debt is settled, if payment was for less than the full amount, that fact is separately recorded in your credit file by way of a "Special Comment code" reported by the creditor. If you want your CR free of reference to a settlement for less, you need to get that special comment deleted. The status of paid or "settled" is not the issue.
