My understanding is that reporting that the debt should be considered "paid in full" will be reflected positively in a person's credit score. It's not going to

My understanding is that reporting that the debt should be considered "paid in full" will be reflected positively in a person's credit score. It's not going to completely undo all the damage from earlier reports of missed payments, etc., but it will take care of that particular debt and be counted as a debt paid.