With the knowledge of how your credit score is calculated you can focus your attention on making the right moves to help boost your ratings no matter what your current financial position might be.
You need to understand first and foremost that your credit score is simply a reflection of how the lending institutions view the data that is presented to them by the credit bureaus and how they 'expect' you will be able to repay your bills based on historical recording of data from a vast number of other people.
You need to look at that same data and look at how you can improve your position in the eyes of the lending companies.
If you can make your position more favorable to the lenders by helping them see that you are the type of debtor who can pay your bills on time you will get funds more easily.
The information that the credit bureaus get comes from various sources including the credit card companies and utility companies.
From the time that you open a bank account, start paying bills or borrow money from someone the credit bureaus will start a credit file on you.
This file will document any defaults of payment, overdue payments and anything else that will affect your credit score by providing potential lenders a snapshot of your financial performance.
If you pay your bills late the companies, you owe the money to will inform the credit bureaus and then will note this on your profile.
The more of these bad transactions that are noted the lower your credit score can become.
There are other factors that will also affect your credit score, and these are also noted on your profile including the types of debts that you have, how much debt you have, and how well you pay these debts back.
The credit bureaus won't disclose how they calculate their formulas, but recent financial history will generally have more effect on your credit score than older information.