Should I pay credit card Collection | Will Not Remove Report

Should I pay credit card Collection | Will Not Remove Report
I’m sorry to write you a second time. I’m trying to improve my score ( 568  ).
I’m writing for a particular account with First Premier Bank, I offered to pay the full balance (277$) and asked if they could delete this account from my credit report.
I received a letter from them saying that they would accept a settlement of 167$ (the remaining will be waived) and that an update will be submitted to the four major credit reporting agencies to reflect “Paid-settled for less than full balance/Charged Off” and that this would take up to 60 days.
Is this the normal procedure, should I insist on paying the full balance and have this account deleted? and should I request something in writing if you think I should pay the 167$… Also, any idea how much that’d improve my credit score (if it does)… ?

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First What is the date of last activity, or the date of first deliquency?

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This is from my credit report:
Date opened Feb, 2007
Date of last activity Dec, 2008
Date of last payment Jul, 2008

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I would ask really hard maybe even make em sweat a few months
about paying in full with full removal
 
this is so new and your credit is so bad
that paying it off is not going to really help you one way or the other
even removing it will not help you much
 
so i would try longer to get it rremoved

in the end you know
you have to get some new good credit started
use a secured card

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Ok thanks a lot, I will Keep bugging them.
Also, do you know any company or person I can trust to improve my score? I know you probably get tons of emails so i’m not asking you, but I’m so much in the dark as far as what to do to improve my score that I’m willing to pay somebody who knows what he’s doing if he can just take a look at my report and tell me how to handle each account.

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Ill help you free as best i can
the main thing i can tell from here is this
 
get some good credit started
and try to get as much bad stuff 24 months behind you
or
deleted
paid
or settled

Should I pay credit card Collection | Will Not Remove Report