Repairing Your Credit The Right Way Credit repair is a common necessity in this economy. By following the tips we offer here, you will be able to repair your credit bit-by-bit. The first thing you want to do is look at your credit report and learn your credit score. There are many websites that will provide you with a copy of your credit report, some for no charge. Once you know what your credit report looks like, you can begin the challenge of fixing it. The first thing you need to do is contact your creditors and find out if they will work with you, or allow you to pay at a later date or a smaller ammount. Pay off the accounts that have the earliest deadline in order to prevent anymore interest costs towards you. If you can identify creditors who are more lenient with payment options, you can then focus your attention on paying back accounts with inflexible creditors. Being able to spot the errors on your credit report is a great skill to have. Credit reports often contain errors. These errors can have a profound negative effect on your credit score. This is why it is important to make sure you obtain a copy of your credit report. You absolutely must communicate with the companies or agencies responsible for any inaccurate data that appears on your report. It is absolutely essential that you know your rights before you make contact with any collections agencies. Debt collectors are not permitted to harass you, and you are not obliged to take their phone calls if they go this route. You do not have to worry about being sent to prison for not paying a particular bill. You should check the laws of your state as each has different regulations, so you can know your exact rights. You can request that the collection agency only contact you in writing. You should try to keep your credit card balance under 30 percent at all times. This makes monthly payments easier and keeps your finances out of harm's way. When your bills are in the collection agency, try to agree on a payment plan with them. Many times, the collector will be happy to work with you. Avoiding the collection agencies does you no good at all. You should be honest with your creditors, and explain your situation to them. Your bill may be lowered; in some cases, you may only be required to repay half of your outstanding debt. Cooperate with them, and suggest a payment plan that you can afford. An added benefit is that once you negotiate a payment plan, creditors generally stop adding no-payment charges. The following advice will help you get on the path to improving your tarnished credit score. These ideas make turning that 500 into an 800 a simple matter.