Given the current state of our economy, it is common for Americans to have credit problems. No matter if your credit needs a little or a lot of help, the tips below are a great place to start.

To start, you should get a copy of your credit report so that you can discover your credit score. There are lots of places to find a copy of your credit report, some of them for free. When you know what your credit report says, you are better prepared to fix the problem.

You will want to get in touch with your creditors so you can work out a plan. Talk with them about the bills you will be paying in increments and about those that will be postponed. You can avoid penalties and interest by making a plan and sticking to it. Once you have figured out what can be put off, you can pay the creditors with the meanest attack dogs now.

Document any negative entries appearing in your credit report. If you do find that there is false information included in your report, you need to contact the listed companies and ask that the information be corrected. It is helpful to have all the particulars of a negative entry handy, even if it is accurate.

It's important to understand your rights. Remember, you can not go to prison for unpaid debt. Verbal abuse either in person or through the telephone is illegal, so make sure you report agencies who resort to this. Exercising your rights when dealing with a collection agency is important, because it prevents them from walking all over you.

You must keep the balances on your credit cards to a minimum; preferably no more than 30 percent of your total credit limit. The lower your balances, the better your budget, as your monthly bills will be less. With high balances, they accrue more interest and aren't as easy to pay off.

Some people try to ignore collection agencies, but it is better to try to work with them on payment options. Sometimes, if you tell these agencies that you are going through rough times, they will try to help reduce or consolidate your debt. Being proactive and talking to your creditors about your debt can help prevent them from adding additional fees to your accounts.

You can stay on top of your finances if you follow these tips. You can follow these tips by yourself and you should quickly be on the right track to a better credit score.