Bad debit and credit card is actually a credit card that the credit card suppliers offer you to the people who have bad debit. Did that astonish you? Well, don’t let your thoughts run just yet.
You are able to categorize bad debit and credit cards into 2 categories depending on what you understand by bad debit and credit card. The first category of bad debit and credit cards is individual credit cards that are secured . These bad debit and credit cards need a security i.e. you have to open a bank account with the bad debit and credit card supplier.
The credit limit on your bad debit and credit card is calculated as a percentage of the balance you hold in the bank account you have opened with bad debit and credit card supplier. In general, this is 50-100% of your bank account balance. Therefore, this bad debit and credit card allows you to spend the total amount you hold in your bank account; only the way you spend it changes .
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 debit and credit card supplier; after all how can you trust someone who has a bad credit rating.
The other additional category of bad debit and credit cards are not unconventional, they are the same cards that we are conscious most frequently; the only real difference is in the way you get them and the objective behind getting them. Right here, we are talking about the credit cards that you use as a debit consolidation system i.e. consolidating bad debit . So we can call them bad debit and credit cards too.
These operate by transferring of the balance you have on your current, high interest credit cards to these bad debit and credit cards that have a lower APR . Consequently, these bad debt credit cards help you in consolidating your debit and getting some relief from the higher APR that you were experiencing on your current card.
Some individuals accept both of the above categories of credit cards as bad debit and credit cards while others tend to go with one or the other. So, what exactly you regard as a bad debit and credit card is really a matter of personal choice.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin