When you apply for any loan your credit information will be graded for risk potential.  Credit scoring software looks at five areas of your credit reports:
•    Your Payment History
•    Amounts You Owe
•    Length of Your Credit History
•    Types of Credit Used
•    Your New Credit

Credit Health offers some useful tips to increase your credit score:
1.    Draw up a budget and pay all monthly payments on time.  If you fall 2 or 3 months into arrears, creditors are far less likely to give you credit.
2.    Reduce debt by paying more than the minimum payment on your accounts.  This also saves a significant amount of interest.
3.    Aim to reduce the amount of money that goes on debt every month to 30 – 50% of your after tax income.
4.    If you are unable to make a payment due to unforeseen circumstances, talk to the bank or retailer concerned and make alternative arrangements to pay back what you owe.
5.    Avoid taking on more debt while you are paying off debt.