Now that the economy has taken a downturn, even more people are struggling to maintain good credit. Fixing your credit takes time, but it is entirely possible if you use the tips outlined here.

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. Once you know what you owe to creditors it will be easier to fix your credit.

Contacting your creditors will likely be uncomfortable, but you can't let that unpleasant feeling stop you. You will probably be able to defer your payments or divide them in monthly installments. Once you realize you will have problems meeting your payments, it is best to avoid penalties and higher interest rates by contacting your creditors. You should start by paying off the bills for which you cannot find a compromise.

While you review your report, make sure you take note of any negative credit entries. Businesses have a responsibility to correct mistakes on your credit file, as long as you contact them and disprove the entry. If there are negative entries that are accurate, having the details on hand will make it easier to find ways to improve those particular accounts.

When dealing with debt collectors, it will help you if you know what your rights are. Collections agencies do not have permission to threaten you, and you cannot be taken to jail for non-payment of a bill. Make sure you know the local regulations. These agencies have no right to push you around.

The best way is to keep more than half of your credit free. Credit cards with more than 30 percent of available credit debt will overload you with large payments and finance charges that can seriously break your budget.

If you have gotten to the point where collectors are calling about your bills, form a plan to pay them off. Most collection agencies will be glad to cooperate with you. Although you can just avoid or ignore your creditors, they are usually very persistent and may be less inclined to work with you if you continually put them off. In addition, you'll make no progress toward repaying your debt. Inform them that are willing to cooperate but that you are indeed having problems meeting your financial obligations. Sometimes they will lower your bill and even cut the amount you owe in half. Try to work with the creditors and see if you can get a payment plan that you can afford. Your goal is to work out a plan so charges stop accruing while you do your best to pay your bills.

The advice offered here will help you to stay on top of your credit issues. These techniques will enable you to repair a bad credit record and develop good credit habits for a more prosperous future.