Let me start by saying that this is a first-rate secured credit card. Really, the only downside to the Navy Federal Credit Union nRewards Secured Card is that to be eligible, you have be in the military or related to someone who is. But if you meet the eligibility requirements, this is one of the best cards out there for rebuilding or establishing credit.

A credit score is either a blessing or a curse cast down upon you from the digital cloud. A score of 740 qualifies you for the best interest rate on a conventional mortgage. A score under 640 means ugly interest, and a number under 620 makes it very hard to get a mortgage at all.

A credit bureau is an information clearinghouse that compiles information on consumers. The credit grantors, or lenders, report consumer payment history to the credit bureaus. The credit bureaus then compile that information together with information on tax liens, bankruptcies, and court judgments that is available in public records. In return, when consumers apply for credit, lenders can check credit reports to determine the creditworthiness of consumers.

Your credit score is used by lenders to determine if you can get a mortgage loan and what interest rate they will charge you.  It is also used to obtain a car loan, cell phone contract –- even employers and landlords check it!  This is a precious 3 digit number you should try your best to protect.

Having a foreclosure on your credit report is like dropping a bomb on your credit score — almost cutting it in half in some instances. Your FICO Score will take a big hit that could remain on there for as much as seven years.