The first thing to do is check all three credit reports and learn what your credit score is. A number of websites offer these services, and some sites provide reports at no charge under certain circumstances. If you want to repair your credit you must know what the problems are.
You need to get your current account information by contacting your creditors. Once you have this information, you can figure out which accounts need to be paid now and which can wait a week or two. You will save a lot of money by focusing first on the bills issued by companies that enforce strict fees and charges for late payments. Creating payment plans when possible can take off some of the pressure to pay every account right now.
You should keep track of and document any negative entries on your credit report. This list will prove invaluable later. Often times, there will be mistakes on the report, and you need to know when this is the case. Contact these people to get your situation straight if there are problems.
Making sure that you know your rights and the associated laws, will ensure that you are on the same page with your collection agency. Collection agencies can’t threaten criminal prosecution for not paying a debt. Do not allow your self to get bullied. You should learn what the laws are, both federal and state, as well as what rights you have.
You should strive to keep each of your credit account balances at less than 30 percent of your total credit limit. You will avoid financial risk and have more manageable payments.
It is important to bring delinquent accounts out of collection status by offering to make regular payments, even if they are small. The majority of collection companies want the debt paid, so they will try to work with you. Usually, just ignoring their calls won’t suffice. They will work with you and help you if they think you are trying. If you’re lucky, they may even negotiate a settlement. Dividing up your bill is a good option.
If you follow the advice here, you can improve your credit tremendously. You have learned several ways that you can fix your credit in addition to what you can do right now to start the repair process.