I believe it would look better paid in full and 0 balance rather than settled for less in the eyes of the UW. You paid your debts in full.
My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC. My siggy is not to brag at all. Just to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.