Settling Collections VS Paid in Full

Hey guys!

So I am building credit, got myself a nice little capital one card with 300 limit (my score is 472... lolol)

I am working my way up! I want to be able to buy a house and gain equity that way and be able to finance and buy a car.. I want to have the options to, not that I necessarily will, but you know, credit building is something that I believe 27yr old with dreams of the future should do!

So I plan on paying my collections. I got a call from one saying that they are willing to settle, and I was willing to pay 300 on the spot (it was 503 at the time of the call), but then hung up because I realise... there is a difference on my credit report!

I was wondering if there was a difference! And if I should pay in full as opposed to settling!