1. A settlement is better than a collection account being added. But not as good as a payment in full or a deletion. Hard to say how much it will help your credit..but it shouldn't hurt. 2. You should send a goodwill/pay for deletion kinda letter. Do a search on here to see if anyone has had any luck with Citibank for goodwill. However I doubt a settlement would help with getting a deletion. Payment in full would prob work better. 3. So I take it they already charged off the account? How behind are you? It looks like a good deal money wise if you don't have the money to pay in full.