Angiepharm,
I can empathize with your situation. I stopped using credit about 5 years ago and started repairing past problems in 2006. I had several cc sent to CA, a paid judgment and student loans that came out of deferment without me knowing -- listing as 90+ days late. I found that even though things started "looking better" I was still getting denied for credit and my scores were not improving.
After about a year of looking for credit and being denied (ouch those inq- still hurt!), I opened a secured credit-card. I think my score went up +50 in one month! I am finishing school this semester and took out a credit-based private student loan and the score went up +25!
I don't want or need to spend on credit, but, like you, I want to own a house so that means I have to play the fico games. I didn't realize that not spending on any credit was hurting me just as much as the old late payments and derogatory info.
I don't know the full details of your situation, but "new" credit with positive information (i.e. no lates, low util, etc.) might help your scores improve -- it certainly did mine. I am trying to "dilute" the past bad items with the new good items! I have also not opened too much credit too soon but will probably open another secured cc probably with BofA in the next several months (I don't want to deal with an inq and potentially not get approved -- I guess have gotten one too many denial letters... )
I look at it this way, I can use the the security deposit from the secured- CC as part of my down payment for my house. 
Don't give up hope -- I'm sure it will get better.
Message Edited by M-2008 on 03-27-2008 11:42 AM -- Sorry spelling error...
Message Edited by M-2008 on 03-27-2008 11:54 AM
thanks everyone for your words of encouragement. i'm always double checking my credit report (EX-backdoor method 
), to make sure that i haven't missed anything. but then it just becomes almost depressing when i look at how much crap is still on my report. none of my friends understand, and they think i'm crazy. one of my friends yesterday said, credit doesn't matter, you make good money, you'll get a car and house no problem. and i try to explain to them, that's easier said than done. they have 650+ credit scores and don't have the same issues as i do. their parents made sure that they had spotless credit, by making them authroized users on their credit cards to teach them how to use credit, and paid their credit cards. my mother got utilities and credit cards in my name and let them go to collections. she'd say, oh i paid that, and then i find out that she didn't when i check my credit report. i had to make choices like, pay this bill or be homeless. i don't regret my decisions, because had i not made those choices, i wouldn't be in the position to be able to actually repay and not just wait until it falls off. and i do understand that its the moral thing to do to pay, but when you either have to go to the doctor, because you've been vomitting everyday and have a 100+ temp, i think i'd rather just have to have a collection and be alive, than the alternative. i do definently understand the importance of teaching children the importance of credit. we had workshops in high school to teach us about it, but all i heard was blah blah blah. my mom was definently not a good role model as far as teaching about credit, but i'm not using any of this as an excuse. i take responsibility for everything, and i'm feel like i'm burning in hell for my mistakes. (just joking)
), to make sure that i haven't missed anything. but then it just becomes almost depressing when i look at how much crap is still on my report. none of my friends understand, and they think i'm crazy. one of my friends yesterday said, credit doesn't matter, you make good money, you'll get a car and house no problem. and i try to explain to them, that's easier said than done. they have 650+ credit scores and don't have the same issues as i do. their parents made sure that they had spotless credit, by making them authroized users on their credit cards to teach them how to use credit, and paid their credit cards. my mother got utilities and credit cards in my name and let them go to collections. she'd say, oh i paid that, and then i find out that she didn't when i check my credit report. i had to make choices like, pay this bill or be homeless. i don't regret my decisions, because had i not made those choices, i wouldn't be in the position to be able to actually repay and not just wait until it falls off. and i do understand that its the moral thing to do to pay, but when you either have to go to the doctor, because you've been vomitting everyday and have a 100+ temp, i think i'd rather just have to have a collection and be alive, than the alternative. i do definently understand the importance of teaching children the importance of credit. we had workshops in high school to teach us about it, but all i heard was blah blah blah. my mom was definently not a good role model as far as teaching about credit, but i'm not using any of this as an excuse. i take responsibility for everything, and i'm feel like i'm burning in hell for my mistakes. (just joking)well, i'm done venting, thank you everyone for your positive posts, it is very much so appreciated. i guess i'll start on my next round of disputes and dv for those ca's reporting paid, when i paid the oc. thanks again!!!!