Paying off your debts and closing all your accounts is a good way to reduce your monthly expenses, but not the best way for you to improve your credit. Closing all the active accounts on your credit report leaves lenders with little information for evaluating your creditworthiness. The lack of positive recent account information is probably what harmed your credit score.

You should try opening a credit card to establish a new record of responsible credit use. You can try opening a "secured account" if you have trouble being accepted for a standard card. This type of account uses your savings account balance as collateral for the credit limit.

After a few months of responsible use with the secured credit card, your score will improve and you should start receiving standard offers in the mail. You can find secured card offers online and sometimes through your bank or credit union. Make sure you read the fine print before you sign up.