Do you know what your credit reports and scores say about you? Do you know how important they are to your financial future?

Everyone is entitled to a free copy of their credit reports and scores every year – and that’s a deal you should take advantage of. After all, the data contained in that document – and the meaning behind those three little numbers – can determine whether or not you can buy a house, a car, or even get a credit card!

When it comes to borrowing money – either in the form of a loan or a simple credit card where you pay the bill every month – lenders will base their opinion of you solely off of your credit reports and scores. The higher your score is, the easier it will be to find lenders that want to do business with you. If your credit score is over 700, you are typically considered a low financial risk by lenders.
So what happens if your credit reports and scores don’t give such a glowing review of you?

You may have trouble living a “normal” life where you can make purchases as you please. Luckily, though, there is an entire industry devoted to helping people just like you. Typically, you can take advantage of these 2 benefits:

1.Credit cards for people with bad credit
Instead of working like a traditional credit card – where you buy things now and pay off the bill later – many credit cards for people with bad credit require you to deposit money onto the card first. These cards are typically called “prepaid” or “secured” credit cards. It may not seem like the ideal situation, but if your credit score is low enough, it may be all you can get.

Luckily, these cards come with some of the same perks that traditional cards do. First and foremost, you’ll have the purchasing power of plastic – which you absolutely have to have if you want to buy a plane ticket, rent a car, or book a hotel room. And, these cards also come from the same big companies that the traditional cards do, so you can wind up with MasterCards or Visa cards for bad credit. That way, when you pull out your Visa cards for bad credit, no one will know the difference. Everyone will think you have a traditional credit card, so you won’t have to worry about any embarrassment.

2.A personal loan for very bad credit

It may come with a lot of extra rules and regulations – and likely higher interest payments – but getting a personal loan for very bad credit is possible. Just make sure you work with the right “middleman” to find it!