Prove that you have settled your debts
You will need to obtain proof that the debts have been dealt with. In the case of a CCJ this will be a Certificate of Satisfaction obtained from the court.
For informal settlements this would be a letter from the creditor.
For Informal Voluntary Agreements (repayment plans) and bankruptcy, confirmation will be required from the Trustee or Insolvency Practitioner.
Prevent bad credit rating from reoccurring
Lenders will be concerned about problems recurring. You need to be able to persuade them that this shouldn't happen. The points to consider are: job security, domestic stability, health, affordability, income stability and level of indebtedness. Some issues you can insure against, (redundancy, sickness etc), others are down to common sense.
Find out how much credit you can afford to borrow
Taking all the previous points into account you MUST make sure you can afford the commitment you are proposing in order to avoid slipping back into bad credit. You should be able to demonstrate this by completing a budget form. Print this off and fill it in.
Then ask yourself:
What if your income reduces?
Are you relying on overtime or bonuses?
What if interest rates increase?
Have you left enough leeway?
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