As mentioned earlier the largest factor in the calculation of your FICO credit score is naturally your credit history. Basically the lenders want to know how you performed in your previous loans or debt products so they can determine if you are worthy to obtain another loan or not. This is exactly why it is vital that if you want to apply for a loan that you have the best credit history possible so that you get the best rates and also stand a much better chance of having the loan accepted.
 
There are a few things that you can do before you actually apply for the loan that can help you increase your credit score in the short term so that your access to funds will be easier. You should always pay your bills, credit cards or any other financial product off and keep a 0 balance. You can refrain from applying for any financial product like credit cards etc for a few months before you take out a loan. You can draw down any revolving credit product up to 50% and no more. The percentage figure should be tapered down as you come closer to the date of application for your loan.
 
The fact is that most of us will have the bad luck of being a bad credit borrower at least once in our lives. What is important is how you deal with it and how you get yourself out of the hole before sinking deeper into it. If you need a bad credit loan then a few planned steps are necessary to make sure your application process results in a approved loan.

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