As the economy worsens, credit repair is in greater and greater demand. These tips will help you raise your credit score.

Your very first step is getting a copy of your credit report. You can request 1 free credit report a year from the 3 major credit reporting agencies. Get your credit report, study it, and then figure out how you are going to go about getting it to a healthy place.

It is important to get in touch with creditors and see if it is possible to pay off your debt in installments. Find out what debts you need to focus on if you want to avoid paying penalty fees. This will save you money in the future. Knowing what accounts will give you a payment plan or forgive late penalties will allow you to concentrate on the bills that don't have these options.

You should list all of the negative comments on your credit report. If you do indeed discover mistakes made on your credit report, it is important to immediately notify the reporting agency. Write out an explanation for anything you believe to be your fault that you can submit to anyone who views your credit report in the future.

As with anything, be sure that you know your rights when it comes to collection agencies. Collection agencies cannot legally threaten you with the prospect of jail time to force you to pay a debt. Laws vary by state, and you should be familiar with the ones that apply to you. Debt collectors are not allowed to verbally abuse you, and you should not stand for it.

Always keep your credit card balances under 30 percent of the available credit. Your payments will be lower if you keep the balance at this amount. If you go over this amount you may face difficulty in keeping up with your loan payments.

It is important to make good on all your obligations, especially credit card debt. Many debt collection companies just want the debt to be paid, so they may be willing to work something out with you. You should not ignore their calls-- just speak with them and try to work out a resolution. Credit companies will usually try to find a way to settle or make the process easier for you. You might be able to find a solution that works for both parties. Setting up a payment plan is the best option for getting creditors to work with you.

If you adhere to these guidelines, you can feel confident knowing that you are on the road to recovering from a low credit score. Each of these suggestions can improve your chances of increasing your credit rating as soon as possible.