More and more people have to worry about credit repair as the economy worsens. Repairing credit does take a lot of time. However, there are steps you can take right now to make sure your credit starts heading in the right direction.

First, you need to get your credit score. Many sites offer this service; some for free and some for a small charge. It is essential to understand how much damage has been done to your credit in order to start fixing the issues.

Determine which bills must be paid immediately, and which ones may be delayed for a brief period of time. You will be able to make smart decisions once you know which bills could lead to a lot of interest penalties. You can work out a plan with creditors that will accept a late payment and start paying off accounts that won't work with you.

Make a list of any negative information you see on your credit report. Keeping a list of negative credit report information that you find really comes in handy for improving your credit. You need to know what's on your credit report, because in some cases incorrect information or errors are reported. Then you can call the businesses that made the erroneous claims and work on clearing the damaging items from your report.

Take the time to do the research regarding debt collection so that you understand what your rights are in your state. If a collection agency threatens you with criminal prosecution or jail for not paying a debt, it is breaking the law. Many states consider this to be verbal abuse and illegal. Know your rights, and the laws that protect them, to avoid collection agency abuses.

Your available credit on your credit card balances should be 70 percent. If you have more than 30 percent in debt that can hurt you with big interest charges and payments that can be a burden on your monthly budget.

Develop a payment plan for bills that have been turned over to collection agencies. The majority of collection companies want the debt paid, so they will try to work with you. Ignoring calls is never the answer-- they will just keep calling more frequently. They are going to help you out if you try to work with them. Some agencies may even consider offering you a settlement. Dividing up your bill is a good option.

Using these tips can help improve your credit. Do all of these things to ensure your credit is repaired as quickly as possible.