You need to keep those credit cards. I got all of mine paid off but then I just locked them up in the safe and kept them open. They say if you cancel a line of credit it can reflect poorly on your score. Best thing I ever did was get a balance transfer loan before my wife and I got married. Pulled us out of a bad place. Now still have loans for the house and vehicles, but it isn't nearly as bad. It seems like there is always something though. Just when you start to get ahead a tree will fall on your deck or a pipe will blow in your front yard or your basement will flood (true stories :P).