Account settlement vs complete repayment for better long term credit rating

S2K

I have missed couple of payments on my payday loans and i am willing to pay the complete amount to the compnay. I have spoken to the customer care officer and they made an agreement with me to pay 620£ ( i was suppose to pay 691 (including late charges and Interest). I have been told that it will apprear on the credit rating file as settled. Is that a good news or Bad news for my credit rating? Does it appear till 6 years on the credit file? Can you please confirm which option is better for me in longer term
Paying the 620 with settled on the Credit file?
or
Paying the complete loan of 671 (though not sure how will it get reflected on the credit file?
Appreciate your help and propmt response

fermi

Are they going to mark it as fully settled, without a default or partial settlement marker?

Have they confirmed the settlement terms in writing?