Does paying off a settlement on your credit card balance harm your credit rating?

No

Ask them.

You will take less of a hit paying off part of the debt than if you paid none of it. And if in the future you are able to pay off the rest that helps even more.

It might say “settled in full for less than the full amount,” and could effect your credit rating a bit.

Unless your determined to pay it all off, I would take the deal because regardless the outcome there will be mention of it on the report and you can then record your side of it. You’ll probably have a bit of trouble buying a house (but who doesn’t today?) and you may have to settle for a bit higher interest for a new car, but other credit (though they may inquire about it to you) should not hold this against you (unless you have other problems). Oh, one more thing.. They said they would report it settled.. Make sure you get that in writing other wise what they say isn’t what they have to do once you pay.