Credit, the Poor Score

My journey to look for a home is getting exciting. I have learned that I no longer have a poor score, but a FAIR score. Some things I have done is pay off some of the small debts I incured. Some websites on credit say not to settle for an amount and pay it off because it may damage your credit report even more. I think within due time since the balance is $0 instead of the previous amount, it shows that you are trying to better your scores. I don't know for sure, but it seems to be working for me. Are some of you out there having a hard time with your credit report? You're not alone.