What is a Bad Credit Credit Card?
Bad credit credit cards are credit cards that are created for people with bad credit ratings. These cards provide opportunity to the people to use credit cards as well as to improve their credit ratings. Bad credit cards also act as a training ground for the people to build new spending habits. Bad credit cards are also called secured credit cards. They’re called secured because credit card issuers require consumers to open up an account and maintain some cash balance in the account. This requirement is made to protect the issuers from non-payments of defaulted credit card holders. The credit card issuer will pay interest on the balance in a consumer’s account. And the credit limit on the bad credit card is determined by the 50-100% of cash balance in the account. So, card holders actually draw their own money and it’s not a surprise that these cards are also referred to as debit cards.
