1) "Most of my information is OLD"
Dispute every old item on every report. Even if it is legitimate, sometimes the stuff on your report should no longer adversely effect your score so significantly (e.g.: a 30 day late on a credit card more than 24 months ago).
2) "recent hospital lien that was placed on my report in 2007. "
Um. Hospital billing are usually pretty sympathetic. First work out a budget. How much could you actually pay them per month? If they needed a down payment, what is the maximum you can give without killing yourself or feeding your kids Ramen for 6 months. ONLY AFTER you have those numbers in your head, call the a/r or billing person and in your best "I'm a Customer Service Rep too" voice BRIEFLY explain your situation--what you went in for (usually unexpected health emergency), maybe why you were delinquent, how you were planning to pay them back and even agreed to a payment arrangement, then how this collection is making things tougher for you now. Ask if there is any way to work out payment in lieu of collection and call off the dogs. If they agree to that, make sure to call the collection company to make sure the collection is deleted from your report, if not after 45-60 days, dispute it.
If that doesn't work, call the collection company and ask THEM for a plan that you pay the debt in some way and in exchange, they remove the entry from your credit report. Even offer them post-dated checks IF they delete the entry first.
If that doesn't work, it's time to email/ call/ contact Michael Moore. :-) (and I'm not kidding)
3) "I was being garnished. "
I missed something. WHAT ON EARTH???? How long was it at a collection agency? Did it not go to an agency? It's REALLY hard to garnish somebody's wages, usually only the feds, the franchise tax board, and student loan companies can garnish wages. I need more information to give you advice on that.
4) "how does paying my utilities, car insurance, etc. effect my report."
paying utilities does absolutely NOTHING to your credit report unless it goes to a collection agency, but by then you would have already maxed out your credit cards buying candles, bottled water, and firewood. So the pecking order is mortgage first, credit cards next (even if it's just the minimum), then installment debt (car loan, student loans, etc.), and lastly do utilities. So what if it turns pink every now and then. You are on a mission. Insurance is a necessary evil. Pay it when it's due. Does NOTHING to your credit report unless you have a past due balance that goes to a collection agency. However, as your credit score goes up, your insurance rates (if you are "financing" your policy instead of paying outright) go down.
5) "I have recently acquired two secured credit cards . . . how does that affect my credit score?"
The gods have given you a second chance, treat it as such. Don't be late, don't miss a payment, treat it like probation. This too will pass, and you'll start getting REAL credit card offers as soon as you hit 600.
6) "My goal is to have a 700 or better score in 12 - 18 months"
You can do it. It won't be easy. The more accounts you pay off, the higher your score. Pay off 90% of your credit card debt within some comfortable timeframe. I can tell you how I did that later if you want, this reply is long enough already though. Get rid of any collections on your report if you can as I explained above. Try to over pay a little bit (even like $10 - $20) some of your installment debt (student loans), some lenders--especially Sallie Mae, have given a clean slate to formerly delinquent borrowers without the borrower even knowing. For others student loan lenders, call, negotiate, ask for rehabilitation in lieu of timely payments for the past year or so. Rehabilitation is usually offered only to SERIOUSLY delinquent borrowers as an incentive to get them to pay, but it wipes out all negative information on the loan AFTER the borrower successfully makes payments for I think 2 years.
7) "so that I can relocate and hopefully relocate into my first home. Thanks to all that read this and respond."
Um. Keep the enthusiasm...but wait. Wait for your score to hit 725+. THE LAST THING YOU NEED is a high-interest mortgage. Also as you review your finances, learn to appreciate the freedom and extra change you keep in your pocket while renting. And it goes without saying, when you shop for a house while desperately wanting one, you become bait. 'nuff said.
8) "RICDIABLO, your story is inspiring . . . I have students loans as well, pls tell me your secret on how you achieved this in such a short time."
Thank you so much. No secrets. I'm just learning as I go along. I started at 18 and went from no credit history straight to bad credit with Freshman year charge off. This is the first time in my life that I feel like I'm in charge of my finances.