Capital One Offer

I need help regarding this account.  I had a credit card with limit of $500 that right now is at $1,100.  This account was sent to collections and about a week ago I received a letter from Capital One offering me 0% interest if I agreed to start making payments to this account.  This account is obviously showing up as negative on my credit report.  What steps do you recommend I take? Will making payments increase my credit score? Do I ask them to delete once I pay off the total balance? I have no idea what I should do? I really need to increase my credit score since it dropped drastically in the last two years after I was going through a divorce.