‘Bad debt credit card’- what’s that?

Bad debt credit card is basically a credit card that the credit card suppliers offer to the people who have bad debt. Did that astonish you? Well, don’t let your thoughts run just yet.

You can classify bad debt credit cards into 2 categories based on what you understand by bad debt credit card. The first category of bad debt credit cards is those credit cards that are secured (and are also known as secured credit cards). These bad debt credit cards require a security i.e. you have to open (and maintain) a bank account with the bad debt credit card supplier. The credit limit on your bad debt credit card is calculated as a percentage of the balance you hold in the bank account you have opened with bad debt credit card supplier. Generally, this is 50-100% of your bank account balance. So, this bad debt credit card enables you to spend the amount you hold in your bank account; only the way you spend it changes (i.e. instead of spending that as cash you spend it using your bad debt credit card). So bad debt credit card lets you enjoy the convenience and other benefits that are associated with credit cards, even with a bad debt. This security is as such important for the bad debt credit card supplier; after all how can you trust someone who has a bad credit rating.

The other category of bad debt credit cards are nothing unusual, they are the same cards that we know of most commonly; the only difference is in the way you get them and the objective behind getting them. Here, we are talking about the credit cards that you use as a debt consolidation mechanism i.e. consolidating bad debt (as such any debt is bad). So we can call them bad debt credit cards too. These operate by transferring of the balance you owe on your current, high interest credit cards to these bad debt credit cards that have a lower APR (at least for some initial period). Hence, these bad debt credit cards help you in consolidating your debt and getting some relief from the higher APR that you were experiencing on your current card.

Some people accept both of the above categories of credit cards as bad debt credit cards while others tend to go with one or the other. So, what you regard as a bad debt credit card is really a matter of personal choice.

Which secured credit card is the best for people with no credit history? - CardRatings.com

MyFinances.co.uk

Which secured credit card is the best for people with no credit history? CardRatings.com For example, each secured card will require you establish a savings account to secure the credit card, so one question to ask is, "How much of a balance is ... 8 Most Deceptive Terms Used in Credit Card OffersFOXBusiness Credit Card Use And Debt–Can Buying On Credit Help Improve A Bad Credit Score?Red, White, and Blue Press (blog) Mom, Can You Co-Sign My Credit Card?CBS MoneyWatch.com (blog) Marketwire (press release) -Forbes (blog) -Helium all 290 news articles »

Parents Who Co-Sign A Teen's Credit Card Need To Set Firm Rules - NY1

NY1	Parents Who Co-Sign A Teen's Credit Card Need To Set Firm Rules NY1 If parents have concerns about co-signing a credit card, but want to make sure their children establish their own credit, experts say a secured credit card ... and more »

Net1 Launches Mobile Payments Initiative With a Top Five US Wireless Carrier - MarketWatch (press release)

Net1 Launches Mobile Payments Initiative With a Top Five US Wireless Carrier MarketWatch (press release) "We are excited to announce our relationship with Net1 Virtual Credit Card as it is consistent with our commitment to 'Changing the Way America Pays' ... and more »

VMWorld: Virtualization Poses Challenges For PCI Audits - ChannelWeb

VMWorld: Virtualization Poses Challenges For PCI Audits ChannelWeb Credit card data doesn't just exist in an organization. It has to come from somewhere," he said. "Describe what virtualization is being used, ... and more »

Students will have to learn new ways to build credit histories - Fort Worth Star Telegram

Students will have to learn new ways to build credit histories Fort Worth Star Telegram Credit cards: Yes, mostly. All co-signed cards, most secured cards and some authorized user cards report to the credit bureaus. Utilities and rent: No, ...