Your Credit History

While there is nothing you can do about your past history you need to understand that this is one of the most important factors that the credit bureaus will use to determine your credit score and whether you are a risk or not.

This is the best indicator that they can get on how you will be expected to perform in the future and even if you have changed your ways and are now more financially competent you will still have to deal with this on your records.

Approximately 30 percent weighting is placed on credit history when determining credit score so you will understand that apart from the fact that you can't change what has passed you can start showing to the credit agencies that you are less risk now by paying all your current debts on time and in full.

This will give them some sign of what they might be able to expect in the future.

The bigger the problems you have had in the past the more work you will have to do to convince all involved that you deserve a second chance.

Bankruptcies and unpaid taxes are the ones that will count against your score the most along with loan defaults and late payments.

If you can clear any of these debts that will have a substantial affect on your rating but often this is not possible with bankruptcies so you will be better off focusing on showing the credit bureaus that all of your current debts are getting paid as they should.

This will begin to establish a new pattern and a new credit score will be the result of this action.

Even though this can take a while to reverse if your prior history has been relatively poor there is no time like the present to get started because that will allow you to start getting smaller amounts of credit which will in turn speed up the process of credit score recovery if you make the repayments on time.