Bad Credit with on time payments

Hey guys,

I recently got a new job and during the hiring process they ordered a credit report. There were quite a few things on there that weren't mine needless to say I got those removed fairly easily however I did find 2 medical collections (for which I had never been billed). One was just for the copay, the other was not covered by the insurance. I'm talking with the insurance company to get that covered and then I will try a PFD.

I wanted to start the process of buying a home within the next 6 months to a year and figured I'd start by checking creditkarma.com for a score and against the accuracy of the report I had. Turns out my score is bad <600.

Now I don't have any late payments ever, I had one credit card that is no longer active and a current car loan. The factors hurting me most are the age of the accounts. Both only about 2 years old, as well as the fact I only have 2 accounts.

Obviously I need to handle the collections accounts but how much help is that going to be and should I open a secure credit card with a higher limit >$2000 in order to increase my credit. Any advice at all would be greatly appreciated.

Thanks