Bad credit mortgages refer to property loans for people with poor credit ratings. These loans are often second or third mortgages on property owned by these people. Obtaining a second or third mortgage or equity line of credit with poor credit is possible, though might cost more. Getting a bad credit mortgage could help someone with poor credit clean up their report by paying off delinquent bills and establish a better track record. This can put a halt to collection calls from creditors, provide cash for living expenses, and possibly help avoid bankruptcy. The lenders who make these loans are called subprime lenders. Often the qualifications for these types of loans are less stringent than traditional requirements. Borrowers saddled with high interest credit card balances can often get out from under the burden with a bad credit mortgage for the equity in their home. They can use this money to retire the credit card debt and make their monthly expenses more manageable.