We need a little bit more information to give you accurate advice.
How many collections do you have on your report? Paid? Unpaid?
Do you have any student loans? Any late payments on them?
Do you have any positive credit? Credit cards? Auto loans?
I forgot before...Welcome to the forums!
Well....You are about 6 weeks late for some really good advice! You really should have used the PFD (Pay For Delete) process in paying off those credit cards in September. Now you will have to learn how to write GW (Good Will) letters to have the credit card collections removed from your reports.
Paying off bad debts does ABSOLUTELY nothing to your scores, good or bad. You need to have the negative information removed! Read these forums and learn how to write GW letters to have ALL the negative information removed. Don't take no for an answer! Send letters every week!
Yes, you need at least 3 credit cards to maximize your scores. Start with BoA and Cap1. Add Walmart once your scores reach 640.
Jamie, thank you for the prompt responses! I am really hoping over the next two years I'll be able to have this thing turned around. I have already been reading over the examples and In a nutshell, I'll basically have to send GW letters to all of my previous creditors asking them to remove the negatives and let time and persistence pay off? Yes, you need all the negative information removed from your reports. GW letters work!
Are there any further steps I need to take with the previous collection agencies or was I clear of them once I paid? I guess I was confused because I saw one still currently listed on there.Just paying them off doesn't solve the problem. You need the baddies removed completely!
Anyway, thanks again! I've got a whole lot of research and road ahead of me!