In these uncertain economic times, many people suffer from poor credit. Regardless of how dire your current credit situation may be, these tips can set you on the road to recovery.

Get a copy of your credit report prior to doing anything else. You can obtain your credit report by requesting and paying for it, but there are also sites that will send you a credit report for free. When you have your report, start by looking for any mistakes.

Do not avoid your creditors; open a line of communication with them and ask about payment options, repayment plans, and even a postponement of a bill's due date. Concentrate on paying those bills which do not offer delayed payment options. Determine whether or not you will have to pay interest, late fees, or other financial penalties. You should start by paying the debts with the higher interest rates to save money.

Finding negative aspects to your credit report can actually be used to your advantage. If you don't know what's on your credit report, you should. If you don't ever look at your report you might not be aware there are errors on it. Get in touch with the companies that gave you a bad mark on your report to find out where this information came from.

Make sure that you understand your rights when it comes to dealing with collection agencies. Although disreputable collection agencies may claim that they can put you in jail, this simply isn't so. The laws are different from state to state, but it is generally illegal for these agencies to use threats or verbal abuse over the phone or in writing. Get educated so you can be sure that your personal and legal rights are being respected.

A credit card balance below 30 percent of your limit is best. Keeping your balance under 30 percent will help to keep the payments and interest manageable, and this is always better for your pocketbook.

If you have any debts that are currently in collection, call the company and organize a payment plan. Many companies will be willing to work together with you. You will continue getting harassed if you keep avoiding their calls. They will work with you and help you if they think you are trying. They may even accept a smaller payment. Setting up a payment plan is a great way to get creditors off your back.

The preceding tips help you stay on top of your credit portfolio. With just a few months of putting these tips to use, your credit score will certainly rise.