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.

Knowing what your credit report says and your credit score is, is the first step to fixing credit problems. There are several websites that provide this service, including some that offer a free first report. You can try repairing your credit after you have all of the key info.

Even though doing so may be uncomfortable for you, it is wise to get in touch with your creditors. You will probably be able to defer your payments or divide them in monthly installments. It is best not to put off calling the company too long, as procrastination could end up costing you more money in the long run. If you are having trouble paying many of your bills, contact all of them and then focus on paying off the ones that will not work with you.

Take the time to go over your credit report, and make sure it's free of mistakes. When you go through all of your negative listings, you should make sure they are all correct. Be sure to contact the credit agency and dispute anything you find odd. When you do this, you may be able to have fraudulent or incorrect items removed. That will give you a better credit rating.

Know your rights when it comes to being handled by a collection agency. They are prevented by law from harassing you. You are not even required to speak to them if they call. You cannot be sent to jail for not paying a bill. There are varying laws for each state, so find out what the regulations are for where you live. If you have to, ask the bill collector to only contact you in writing.

You should never use more than one third of your credit limit on any card. Not only will this assist you in building a good credit rating, it will also ensure that you are always in a position to make the payments easily. Once you are over the 30 percent threshold, it can have a negative impact on your credit report.

When your bills are in the collection agency, try to agree on a payment plan with them. For the most part, creditors are more than willing to assist you in developing a payment plan that suits your finances. Avoidance typically just makes the situation worse. Tell the debt collectors that you want to try to pay off the debt but that you are presently having a hard time financially. Your debtors may be willing to lower the amount you owe. Cooperate with creditors and attempt to set up a manageable payment plan. It is in your best interest to have a ongoing conversation with your creditors. This way you can avoid the risk of having them add more fees to your existing bills.

The preceding tips help you stay on top of your credit portfolio. This is one way to start improving your credit profile.