Settlement Offer vs. Pay Balance In Full?

the answer here is simple. if youre worried about your credit, ie if you have a good credit history, then it will reflect better as paid in full. but if your credit history is mediocre, then just settle it out and let it be. if they are willing to settle then they are willing to settle - you know that much. its up to you if you want to take it. so if you're asking for the "least possible damage"? pay it in full.

Is there any chance they will remove this from my credit history if I try and play hardball with them? If I tell them I will settle this debt in full right now if they agree to remove any reference to this off my credit report, any chance they will go for that? If they say no, and I tell them I can't do anything for them are they really going to say no? They have the chance to recover 75% of the debt in cash right then. Are they going to pass it up just so they don't have to remove it from my history? For a relatively small debt it seems like it would be the most practical for them to settle the debt on the condition they remove the report from my history instead of continuing to pour money themselves into collecting a small account. I am new to this and I don't know how well being tough with creditors works, but if I am going to pay this money out I want to do it in the most efficient manner possible.

You can ask for them to remove the trade line but if there is no dispute to the debt, they are lying by removing the fact that you were delinquent. Unless you can show it was really not you, then the trade line is staying. As stated above, paying in full rather than settling has a much better impact on your credit report. Just make sure you get everything in writing.