If you have not repaid a loan, had a car repossessed, had a house foreclosed or have declared bankruptcy, it will have negatively affected your ability to get new credit. Information about foreclosure or repossession can stay on your credit report for seven years. A bankruptcy can stay on your credit report up to 10 years.

If you are in one of these situations, there are several things you can do. First, you might write a letter to the new lender explaining why the problem occurred. For example, perhaps you were seriously ill, recently divorced or lost your job.

Another suggestion is to wait for a few years before you apply for a new loan. The length of time you must wait will depend on your lender’s rules and the size of the loan for which you are applying. During that time, make an effort to reduce your debt and pay your bills on time. When you apply for a loan again, make sure the lenders know the steps you have taken to improve your credit.

Before you make any decisions about bankruptcy, please talk with a counselor at a nonprofit credit-counseling agency.