subject: What Is a Bad Debt Credit Card? [print this page] Bad debt credit card is what is given by the card supplier to people who have a bad credit history. This might certainly be astonishing to hear but wait...Bad debt credit card can be divided into two kinds. The first kind is that kind of Bad debt credit card which is secured and are also known as secured credit cards. This means that you need to provide collateral for them such as tying them in with an existing bank account of yours with the bad debt card supplier. The amount of credit that is allowed is calculated based on a percentage of money that you have in the account. The percentage is anywhere between 50 to 100%. The way it works is that rather than paying cash out of the bank account you can pay it using your bad debt card. Therefore, a bad debt credit card offers you great ease of shopping even though you might have a bad credit score. The money in your bank balance serves as collateral for the bad debt credit card supplier. They certainly want to guarantee that a person with a bad credit pays their debts to them.The other kind of bad debt credit card is the same as the usual cards that you get but the only different thing here is the aim in issuing them. These bad debt credit cards are used to consolidate your debt. They are also referred to by a different name. The way they work is by transferring the balance that you owe the supplier from credit cards that charge you a higher interest rate to those that have a far smaller APR. The smaller APR might be a limited period offer right at the beginning. This kind of card can give you a helping hand in merging your debt together and fetching you the much needed relief from high interest rates that you might have been paying with the credit card that you own at the present.There are people who opt for both kinds of cards as they both work as bad debt credit card. On the other hand other folks opt for either of them. Which one you choose from the ones available depends on your preference.It is also always a very good idea to search .gov websites to help you. There are many free publications by the government that may help you.
