1. Go and get copies of your credit report -then make sure the information is correct.

Go to the Annual Credit Report web site. This is the only authorized online source for a free credit report. Under the federal law, you can get a free report from each of the three known national credit reporting companies every 12 months.

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You can always also call 877-322-8228 or complete the Annual Credit Report Request Form at the Federal Trade Commission (FTC) web site and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

2. Make sure to pay your bills on time.

One of the most important things you can do to improve your credit score is to pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time and not be late, but be sure you have enough money in your account to avoid overdraft fees.

3. Understand how your credit score is determined.

Your credit score is usually based on the answers to these questions:

Do you always pay your bills on time? The answer to this question is very important. If you have paid bills late, have ever declared bankruptcy,or have had an account referred to a collection agency, this history will show up in your credit report.

What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.

How long is your credit history?is it established or not? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.

Have you applied for new credit recently? If you have applied for too many new accounts recently that may negatively affect your score. However, if you request a copy of your own credit report, or creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.

How many and what types of credit accounts do you have? Many credit-scoring models consider the number and type of credit accounts you have. A good mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score and damage it on the long run.

To learn more about this, see the Federal Trade Commission’s publication on credit scoring at their web site.

4. Educate yourself and learn the legal steps you must take to improve your credit report.

Also to let you know the Federal Trade Commission’s “Building a Better Credit Report” has information on correcting errors in your report, tips on dealing with debt and avoiding scams-and more.

5. Beware of credit-repair scams.

Most of the time doing it yourself is the best way to repair your credit. The Federal Trade Commission’s “Credit Repair: Self-Help May Be Best” explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.it is Great!

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In today’s recession, collection companies are not immune. Beginning last year, they started to suffer from declining liquidation performance, staffing cuts, and increased placements.

In January 2009, the U.S. savings rate shot up and continued to spike. By May 2009 the rate was the highest level of savings by consumers in sixteen years.

Usually, an increase in the U.S. savings rate would mean that consumers will be more fiscally responsible and try to pay off debts that they may owe in case of an unexpected adverse event. Unfortunately the first half of 2009 has shown us that this is not what is going to happen and the collections industry should not expect it to.

To make matters worse, the sustainability of savings growth is quite questionable because a portion of the increase was the result of the Obama stimulus package, which sent one time disbursements to consumers. Also, any type of consumer savings may be considered a means to keep heads afloat as opposed to future planning. And although savings boost personal income, they slow down consumer spending.

For the first time, collections agencies need to alter their focus greatly. Its not that consumers won’t pay, it’s that they can’t pay. Thus, the future success of collection companies is depending on U.S. economic recovery.

That being said, savvy conclusions can be drawn about the future growth in the collections industry. Better job opportunities would be an amazing gain for the collection industry. If debtors are employed, they are more likely to resolve their issues. Renewed consumer confidence and spending would be a huge boost.

There is an impending tide of pro-consumer reforms that the collection industry can do little about. How it can truly affect change would be the quality of responses they give, and that they are carefully considered and level-headed. Finally, increased access to credit is a necessity for the collections industry. .

Rapid Recovery Solution is the best bill collection agency around. Mallory Megan works for a medical collection agency.