Charge-off account - PIF or settlement?

Basically it is up to you. But paying off the charged off account full will put you in a better position to go forward. After paying off the charged-off account you should call your original creditor and ask for removal the charge-off from your credit report.

If you pay in full, it will be listed as “paid in full” not “settled in full.” The debt collector will report to the original creditor that the account is paid. Thus, your original creditor will mention as “paid charge-off" on your credit report.

It's better to pay the charged-off account in full since that would help to lower your credit-utilization ratio. It would help to increase your credit score.

Paying off an account in full is always better than settling the account. It will prove you to be a responsible person to your future creditors.