I advice you to apply for a secured credit card, which are designed for people who cannot qualify for a typical, unsecured line of credit; who may be looking to build new credit; or who want to rebuild a poor credit history by means of a credit card.

I have quite a bit of credit cards out in my name that have all gone to collections as well as banks. The only thing that is in good standings on my credit report is my student load and has actually increased my credit score about 100 points in 2 years with out me helping it in anyway. My question is, I am wanting to purchase a house and my credit score needs to be a minimum of 620 to be approved, I currently have a score of 515. My husband has poor credit as well though his is at about 530. Would my best option be to chose to pay off the credit cards with the offers that they give me that say they will be settled in less than full and closes the account or just pay them off in full? Also, if I open a credit card up now and keep that one paid off will that help increase my credit score even with the amount of debt I currently have now? Most of my debt is from Credit cards like capital one, BOA, First Financial, and a few more. ( let me note that I was young and got sucked into these offers, but have since learned my lesson and am at a point where I can start paying all this off now.)

Your best option is to pay off all past due amounts. This will show lenders that you are responsible and accountable for your past mistakes. The offers to settle for less are suspect. Do some research (Google) on your state laws pertaining to credit/debt collections. Seek free legal advice which is available at many college campuses (you mentioned your "student" load) or through your county offices. If you're being harrassed by debt collectors, check out the Fair Debt Collection Practices Act available at www.ftc.gov . Be VERY careful about dealing with so-called credit counseling services. Many of them are bogus and only add to your debt load by charging you huge fees. Opening a new credit card will not increase your credit score even if you pay it off each month. Depending on how much you owe in total, filing for bankruptcy may be an option. Either way, it will very likely take years to restore your credit history. Good luck!

I am in same situation. I have learned the best thing to do is to pull all your credit reports and check for errors with the online dispute process. EVen If there are no errors go ahead and ask for verification. If the collection agency does not respond or can not verify it will be deleted. I just had a 798 cell phone collection come off because it was absurdly wrong. THIs process takes 45 days. THere is no quick fix and no your score won't go up because it got deleted because you paid it off or got it deleted. YOu will although be able to get another chance at getting a card with another company. THat way you can rebuild it. It's not an overnight process at all. TO get a higher score you need open credit in several different sources such as a revolving credit card, a retail store card, and the installment loans that you already have (college loans)

If they're sending you settlement offers of less than original full amount owed. Then they're just trying to get something from you. Before the statue of limitations runs out on collecting the debt. Every state has a different amount of time. That doesn't mean they'll stop calling you! There are many different books out that have some valuable info on dealing with this subject. I've read Debt Cures by Kevin Trudeau. I found it to be very informative. There are many books on credit. So I would check your library or local book store. Then you can make an educated decision on how to proceed with repairing your credit. Since everyones situation is different. You could look for credit counseling services also. Just remember it doesn't happen overnight so be patient. Perserverance will pay off in the end!

Very well said! It takes patience. I filed the big Ch7 "B" and still after nine years have trouble getting credit. What a patience hassle. But it is...

I have quite a bit of credit cards out in my name that have all gone to collections as well as banks. The only thing that is in good standings on my credit report is my student load and has actually increased my credit score about 100 points in 2 years with out me helping it in anyway. My question is, I am wanting to purchase a house and my credit score needs to be a minimum of 620 to be approved, I currently have a score of 515. My husband has poor credit as well though his is at about 530. Would my best option be to chose to pay off the credit cards with the offers that they give me that say they will be settled in less than full and closes the account or just pay them off in full? Also, if I open a credit card up now and keep that one paid off will that help increase my credit score even with the amount of debt I currently have now? Most of my debt is from Credit cards like capital one, BOA, First Financial, and a few more. ( let me note that I was young and got sucked into these offers, but have since learned my lesson and am at a point where I can start paying all this off now.)

If they're sending you settlement offers of less than original full amount owed. Then they're just trying to get something from you. Before the statue of limitations runs out on collecting the debt. Every state has a different amount of time. That doesn't mean they'll stop calling you! There are many different books out that have some valuable info on dealing with this subject. I've read Debt Cures by Kevin Trudeau. I found it to be very informative. There are many books on credit. So I would check your library or local book store. Then you can make an educated decision on how to proceed with repairing your credit. Since everyones situation is different. You could look for credit counseling services also. Just remember it doesn't happen overnight so be patient. Perserverance will pay off in the end!

I have quite a bit of credit cards out in my name that have all gone to collections as well as banks. The only thing that is in good standings on my credit report is my student load and has actually increased my credit score about 100 points in 2 years with out me helping it in anyway. My question is, I am wanting to purchase a house and my credit score needs to be a minimum of 620 to be approved, I currently have a score of 515. My husband has poor credit as well though his is at about 530. Would my best option be to chose to pay off the credit cards with the offers that they give me that say they will be settled in less than full and closes the account or just pay them off in full? Also, if I open a credit card up now and keep that one paid off will that help increase my credit score even with the amount of debt I currently have now? Most of my debt is from Credit cards like capital one, BOA, First Financial, and a few more. ( let me note that I was young and got sucked into these offers, but have since learned my lesson and am at a point where I can start paying all this off now.)