Now's The Time To Improve Your Credit Score

MIAMI (CBS4) - As the U.S. economy continues its painfully slow recovery, many financial experts say now is the time to check, and if need be improve, your personal credit rating.

Al Bingham, a financial author who recently published "The Road to 850", said 680 is the magic number. Stay above that and he said lenders will consider you safe.

Below that 'magic number' however, Bingham said lenders will consider you risky.

"Your credit score can drop 60, 80, 100 points in no time," said Bingham.

So what can you do about it?

The Federal Trade Commission advises everyone to double-check their credit reports annually and dispute, in writing, any errors. Look for missing charge accounts you've paid off, but might not be listed anymore. They can help improve your credit history especially if you currently don't have many credit card accounts or revolving credit loans.

Try accelerating payments on any open loans or credit cards and, where possible, seek lower interest rates on them. Avoid debt repair offers and advance-fee loans, which can often be little more than just another financial scam.

Remember, many so-called free credit reports carry extra charges. Only annualcreditreport.com is federally approved and offers actual no-charge annual reports.

"If you don't pay attention to it, it will cost you. I guarantee it will really cost you," said Bingham.

As the economy improves, many people will be face the challenge of finding a new job or applying for a loan. Working to improve their credit rating right now will guarantee their financial future will be better than it was during the height of the recession.

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