I'm trying to rebuild my credit and hopefully be able to buy a newer car. My credit score is currently rather low due to falling behind on car payments for a period of time due to my income. We have the account caught up now, but the history shows the late payments. Also, when we were going through a rough time, we were unable to make the minimum credit card payments to Capital One and our Wal-Mart card. They have now been sent to collections. The collection agency for Capital One sent us a settlement offer for 55% off the balance we owed. Both of these debts were under $1,000 when they were sent off.
What are my best options for restoring my credit score? Should I pay these in full, or will it not matter now that they've gone to collection? We are in a better situation now that I am making a lot more money, so we shouldn't fall behind on any bills from here on out. I want to do whatever is best to restore my credit so we won't be in this situation anymore and can get a loan on a vehicle.
Also- what are my options for getting some of these negative reportings removed?
Any advice would be greatly appreciated!
