From noncompact to compact: You must apply for licensure by endorsement in the new state of residency. Your individual state license issued by the noncompact state is not affected and will remain active if you maintain licensure and if so provided by the laws of the nonparty state.
It will remain on your credit report for seven years and 180 days after it was first reported late. Although paying the settlement is unlikely to affect your credit score, it will ensure that you are not sued. A judgment against you is an even worse blemish on your credit report than a collection.
Even if you choose to not pay the collection, it must fall off your credit report after 7 years + 180 from the date of last delinquincy, as reported by Bank X. To sum up, when your original debt from the original creditor turns 7 years old + 180 days, it will come off of your report. The collection account must also come off of your report with it.