There are many people dealing with less than perfect credit. Regardless of how dire your current credit situation may be, these tips can set you on the road to recovery.

The first thing that you need to know is your credit score. There are a variety of sites that you can do this; some are even free. Before you even begin to repair your credit, you must know exactly what your credit looks like.

Call your creditors and discuss starting a payment plan. Make, and stick to, a payment plan. Concentrate your financial resources on the accounts that have the least amount of leeway.

You should make a note of all the negative items on your credit report. A list of negative items is important and useful to have. Often times, there will be mistakes on the report, and you need to know when this is the case. If there are errors, you can contact these people to get your situation straightened out.

Although collection agencies may pretend to be above the law, there are regulations to protect you. You should learn your state's laws so that you know what you're up against. One example of such a regulation is that you cannot face criminal penalties for not paying a debt. Even if laws vary from one state to another, threatening you is illegal everywhere. Be well-informed about your rights so you don't feel defenseless when contacted by a collector.

Focus on 30 percent or less as the ideal target for credit card balances. Keeping your balance below this keeps payments reasonable and helps your overall credit profile.

Some people try to ignore collection agencies, but it is better to try to work with them on payment options. In many cases, taking the time to explain your financial situation is all that it takes for a collection agency to restructure your debt, arrange affordable payments or reduce the amount you owe. This also reduces the likelihood that you'll have to pay lots of penalty fees.

Making these simple changes will quickly rectify your bad credit. The best part is that you can begin putting these techniques to work immediately in order to rebuild your credit as soon as possible.