Worry not! I started "re-building" in March of this year. I too, signed up for Scorewatch, which gave me an EQ score of 511 (other scores were 547 TU & 606 EX). Anyway, since March of this year, I have increased my lowest score (EQ) from 511 to 594 in just over 6 months.
I had high credit card balances (over 120% UTIL) that I made weekly payments on and decreased my UTIL to below 20%. Also, I started with about 9 collections and 3 have since been removed and others are paid in full.
Along with writing letters to old accounts in collections, I wrote GW letters to my CCs begging for them to get rid of some old lates (3-30 day lates) and I went to my Credit Union pleaing for them to get rid of my 5 - 30 day lates on my vehicle loan. Well the CC didn't delete, but my CU agreed to delete 2 lates immediately if I signed up for auto-draft (which I did)...and they agreed delete the others at the end of the year after perfect payments.
I just got approved for a 99/500 BoA partially secured card, and all of my other accounts are now in good standing. I was also approved for a FHA loan of up to $130K; 5% down! (This did unfortunately cause a -6 pt hit to my EQ, bringing it down to 588)
Improvements can be done, you just have to stick with it and be a little patient. When I get those e-mails and text messages from Scorewatch notifying me of EQ increases...I jump for joy and I am reminded why I need to stay financially responsible.
