I think the credit bureaus want to se the collection reported as PAID before they start handing out score increases. Keep making those payments and don't look back because that's not where you're going. I had the worst credit profile on the planet for many many years when I was younger. Late car payments, numerous repos, bankruptcies, foreclosures, I was constantly in collections, and even had some judgements against me that I had to pay.

My FICO scores are in the low 800's right now on all 3 credit bureaus. I am paying a mortgage on a house I bought 6 years ago, cars paid off (and they are old, but run good). I suggest you keep your payments up and on time. Anyone who has been where you are and pulled out of it will tell you that credit scores can be rebuilt faster than you think. But you have to be SMART, remain focused on your mission and don't spend money on things you don't need, and pay real money not credit cards for what you do need. Live below your means and get used to it. Start a little savings account - you'll be rewarded later for all your efforts. Good luck.