Your history tells creditors about behaviors that can add up to a "good" or "bad" credit rating. Here are some questions lenders might ask that may help them understand your credit history:
- Do you pay your bills on time?
- How long have you used credit?
- Have you opened several credit cards in a brief time frame?
- How much debt do you have compared with your available credit limit?
How to Improve a Bad Credit History
Credit scores are tools used by lenders to evaluate the answers to those questions. They help determine the risk that you will not be able to repay a debt as agreed.
You can improve your credit report if you know what it contains. Although you can't rewrite history, the passing of time will remove negative credit information from your report. Weak credit scores don't necessarily mean you won't obtain credit. You can get rid of bad credit habits, restore your positive credit history, improve your credit scores and use credit to your advantage.