Need help with westlake financial

[superdad]

Long story short. I have a westlake financial charge off.  Heres whats on the report

Balance 5300

opend 4/4/2015

last payment 5/2/16

Current payment status  in collections/ChargeOFF

auto loan

Charged off as bad debt profit and loss write off

Closed 5/1/16

I have called them to try and do a PFD but they would not and won't budge. I can settle for 1200 and the report would be updated.  Not sure if it will just say paid or paid for lesser amount, they wouldnt say. Does it make a difference?

[superdad]

It does update every month.

[Remedios]

If you settle it will report as "Paid, settled for less than full amount owed" (or something to that extent. 

It matters and it does not matter 

On manual review, paid in full looks better and it's viewed more favorably by future lenders. 

Scoring wise, there is not a difference between the two after it's paid. 

Both will prevent future updates on the account, and that's mainly what you're looking for. 

You should consider your finances first before scoring and do whatever makes most financial sense for you. 

[superdad]

According to my CR it's due to fall off 12/2022  I am on the fence as far as how to pay this. It's not like i have 5K laying around to pay i full and would rather not make payments because that could restart the 7 year clock.  It's effecting my ablitiy to get another auto loan. Any guidence?