Question: If the credit card company agrees to accept less than I owe, will that hurt my credit rating?

Answer: Yes.

True, it's a mutual decision. And true, the credit card company is agreeing to wipe out part of your debt and not pursue it any further. But you still didn't pay all that you said you would, so other lenders will consider that a bad thing.

Here's a summary of how it works, from the Columbia Tribune.