Bad Debt Credit Cards
Bad debt credit card is given to those who have bad debt. Does that astonish you? Classification of bad debt credit cards into 2 categories will depend on what you understand by bad debt credit card. The first one is that of bad debt credit cards where those credit cards that are secured and are also known as secured credit cards. These bad debt credit cards require you to open and run a bank account with the supplier of the bad debt credit card.
Your credit limit on your bad debt credit card will be the percentage of the balance you have in the bank account. Normally, this remains at 50-100% of your account balance. This bad debt credit card lets you spend the bank account balance but you must spend the money only with your bad debt credit card. So, bad debt credit card gives you all the conveniences and benefits of a credit card even when you are facing a bad debt.
The bad debt credit card supplier does require this security as he can hardly trust someone who has a bad credit to his name. The second category of bad debt credit cards is not very different as they are the common cards that we come across. The difference is in the way the card is obtained along with the objective of getting them. This credit card is a sort of debt consolidation mechanism.
So, these cards can also be called as bad debt credit cards. They function in a way as to enable you to transfer the debt of your current, high interest credit cards to the bad debt credit cards with lower APR. These bad debt credit cards can help you consolidate your debt and provide some relief from your higher APR Credit Card.
While both the above categories of credit cards are accepted by some users as bad debt credit cards, either one of them is also accepted. You can make your choices on what you regard as a bad debt credit card, the way in which they benefit you and also the kind of benefit that you want to reap make a good bad debt credit card.
Credit Cards can run you into bad debts and to avoid such problems there are options such bad debt consolidation and bad debt credit cards which you can utilize to make the most of them and erase the bad debt tag on your financial transactions.