Credit cards that are not good for you can be described as credit cards which credit card companies provide to those with poor credit scores. Did you be surprised by that? Be careful not to allow your mind to wander for a moment.
It is possible to classify bad credit cards in two categories based on the information you know regarding bad credit cards. The first class of credit cards that are considered to be bad is a credit card that’s secured (and is sometimes referred to as secured credit card). The bad credit card needs security to ensure that you must open (and keep) accounts with the provider of bad credit cards.
The credit limit of your credit card that is not good is calculated as a percentage the balance that you’ve accumulated against the bank account that you’ve established through the credit card company that is not a good one. In general, it’s 50 to 100 percent of the balance in your bank account. Therefore, this bad credit card allows you to spend the money that you transfer to your bank account, but the way you spend it varies (i.e. instead of using it to pay cash, you can spend it with your credit card).
Thus, a credit card lets you benefit from the conveniences and advantages of credit cards even when you are in debt. This is especially crucial for companies that have bad credit ratings because how do you know if you can trust someone with a poor credit score.
Other categories of credit cards that are not good ones are not rare, and they’re the same credit cards that we are familiar with. The only difference is the way you obtain it and the motive behind getting it returned. In this article, we will discuss the credit cards that you make use of as a means of consolidating debts i.e. condensing bad debts (as every debt is bad).
It’s a credit card with bad debt also. It functions by transferring the amount you owe to a temporary credit card with high interest to a bad credit card which has an APR that is lower (at minimum for the first several years). This credit card that is bad for debt helps in consolidating debt , and also helps you get rid of the high APR you’re having to pay on your card right now.
Certain people consider both types of credit cards as credit cards with bad credit however, others choose to choose one over the other. What you think of as to be a bad credit card really a matter of personal decision.