In the present economy, it's more crucial than ever to maintain good credit. It will take some time to fix your credit and you should follow these suggestions.

Check your credit score by getting a copy of your credit report from each of the three main credit bureaus several times annually. You can obtain a free report copy through a number of different websites. It is easier to figure out how to fix your credit if you know what you owe.

Be sure to touch base with the creditors to see your options. Making a payment plan that you can afford and staying on top of your debts will help you to avoid unnecessary interest or late fees. Keep the more flexible accounts for later when you establish a strategy to pay off your debt.

Finding negative aspects to your credit report can actually be used to your advantage. Sometimes credit reports can contain errors, so it's important to know what is on your credit report. If you find an error, contact the companies involved and let them know so that it can be fixed.

Make sure you protect yourself by knowing your rights when you are dealing with collection agencies and creditors. Collections agencies do not have permission to threaten you, and you cannot be taken to jail for non-payment of a bill. Laws vary from state-to-state, so make sure to check your state's regulations. Do not allow the credit agencies to bully you.

Stay on top of your current credit accounts, and make sure balances do not exceed 30 percent of your available limit. As an added advantage, the monthly repayments will be less and thus easier to fit into your budget. When balances reach 30 percent or more, debt ratios also go up and disposable income is minimal. You need to keep an eye on your balances, making sure that they don't get too high.

If your bills have gone to the collectors, try to make a payment plan. You can try doing this before the bills are in the hands of debt collectors. The worst thing you can do is to avoid the collection agency. These services can work with you to come up with a plan, although you will need to meet then half way. Tell them you are working hard to pay your debts, but things are rough right now. They might settle for part of the debt or at least negotiate a manageable payment schedule. If you are upfront with them, many creditors will help improve your situation.

A healthy credit score is within your grasp when you heed this advice. Start today and begin rebuilding your credit.