Many borrowers are labeled with having a poor credit history by the lenders. Some of them realize it very late that they have a poor credit history and wonder what they have done wrong in the past for them to have such an unfortunate fate. The credit agencies determine your credit score based on various data related with you like hire purchase agreements, your mortgage monthly payments, loans you have taken and credit cards you possess. Various factors can contribute to a poor credit history. Some of them are,
Repeated attempts at securing credit,
Defaulted or late payments on your mortgage or other loans,
Bankruptcy that happened to you recently.
The final two factors can have the most severe impact on your credit history.