Welcome to the forums!
IMO - an account that is settled, that is, paid for less, is better than not paid.
If you PIF, you have a much better chance to get a GW (Good Will) gesture on the account, where they would deleted lates or even the entire account.
Sometimes, a creditor will accept a PFD (pay for delete), meaning they will delete the account after you pay. It is usually done after you have PIF.
If these were CCs, many of the companies hold a grudge and will not let you back in unless you have PIF. So, you need to decide if you need them back again or not.
Amex is one that likes to be PIF before they will let you back in. Cap1 is much more forgiving and allows new accounts after a settlement and I have heard even without one sometimes.
You need to be aware of the SOL (Statute of Limitations) for your state. If the debt is past the SOL, you cant be sued, but the debt is still there. After 7 years, it will no longer show on standard CRs, but it is still an open debt.
Having open CAs will often cause a lender to deny you credit in the future, mainly like a Mortgage.
In my personal credit, I had COs that led to CAs in most cases. I was never able to get a PFD and I made settlements on the accounts.
If possible, try to make arrangements with the OC (original creditor) so you eliminate CAs. It is possible to have 4 COs and then have 4 CAs, one account for each CO. This would show as 8 derogatory accounts on your CRs. Obviously, the fewer derogs, the better it would be for your scores.
So I recommend making some sort of arrangements. A settlement offer of 30% is pretty good, if you are willing to do without that creditor.
Please check the 'helpful rebuilding thread' that is a sticky at the top of this forum as a sticky. It will have a link with a chart for secured cards. One of them that I believe does not require a credit check is the OpenSky CC. There might be others I am not thinking of right now.
GL
ETA: forgot to mention - after 7 years, the account will not turn into a positive account. It will always be a derog. If you have positive accounts that are closed, they will continue to report for 10 years. A positive account that is open will continue to report.
