Whether you've had a bankruptcy or some other tough financial situation, lenders want to see that you've been "rehabilitated." They want to see that you've learned how to handle credit responsibly.

Whether they've had credit problems in the past or they simply don't trust credit, many people think they're better off buying everything with cash. But when it comes to credit ratings, this couldn't be further from the truth.

If you haven't reestablished credit, you're deemed just as risky as someone on the brink of collapse.

So, if you're looking to improve your credit scores, don't go from bad to bad. Use credit. Just use it responsibly.