Credit Card and Debt

‘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.

Chase credit cards

Credit cards have become almost a necessity in today’s world. There are hordes of credit card suppliers who issue thousands of credits cards every day. Chase (of the JPMorgan group) are a well known credit card supplier. Chase credit cards are pretty popular among the masses.

Chase credit cards come with various different benefits and accordingly chase credit cards are classified into various categories. There are general purpose chase credit cards which promise great rates and excellent service. Then there are chase credit cards for people who shop regularly with some retailers. These are termed as rebate cards since they offer rebates on shopping when you shop with certain retailers. These also offer cash rewards. There are entertainment credit cards for people who wish to get VIP access to some concerts, events etc.

Another category of chase credit cards is the travel cards where the credit card holders get travel related discounts and rewards. This category of chase credit cards is very suitable for people who travel a lot. Yet another set of chase credit cards is grouped as auto and gas cards which offer rebates and rewards on everyday purchases. Retail cards are another kind of chase credit cards where you receive points on purchases made using this chase credit card. These points can then be redeemed for shopping certificates, entertainment etc. For students, there is a separate breed of chase credit cards which is called student cards. These student cards help the students in building a (good) credit history and also offer some special benefits for students. Similarly there are college & university alumni cards for supporting your alma mater. There is another set of chase credit cards that operate on similar lines. These chase credit cards are called ‘cards to support organizations’. The organization can be something like a charity or any other organization that you want to support. Then there are military cards that are meant for the members of military (both past and present). You can support your favourite teams or sporting organizations by getting a sports card. Finally, there are business cards which can be used by businesses for organizing their expenses, availing low interest rates and getting other benefits related to business.

Thus chase offers a lot of different credit cards which cater to the different needs of various people. By comparing the features of these chase credit cards and by understanding the main objective behind them, one can easily zero-in on the chase credit card that is best suited to ones needs.



Note: The information given in this article was correct at the time it was written. However, the author does not guarantee the correctness and completeness of this information at any time.