Worth it to settle for less a CO that isn’t actively reporting?

[Anonymous2]

Amex ($3,123) has offered to settle in full for $780. It's tempting to get the debt to $0 balance for 25%.

but it hasn't shown any updates on my CR in a long time. The last date reported was Oct 2023.

They never sued and it is past the SOL.

my concerns are-

1. if I pay it now, how badly will the new reporting do damage if it currently shows a $3,123 balance not $0. Is it even worth it?? Will the $0 balance offset the damage of the updated reporting?

2) if I decide to settle it next year when my scores will inevitably be better- will that be even worse?

3) it falls off in Dec 2026 if I ignore. I like the idea of having a better shot getting back in with Amex eventually in a far off future with a partial settlement vs none- but at this point in my life they aren't critical to my credit needs either.

4) there will still be a bad account not showing a $0 balance that I haven't had luck settling yet so it won't bring me a clean utilization %. 

what would be best for my score? 

[Anonymous2]

Oh, and to add- it will eventually be the only one left on my report. It was the last card I defaulted. Most of my bad accounts will fall off between May-July of 2026.

[sjt]

If you settle, it will zero out the balance and help improve your score. It could also remove you from their blacklist.

Have you thought about asking them about the Optima Card program or account reinstatement?