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Mine's a PsyD. It's a kind of PhD but my understanding is that there's more emphasis on the practice of therapy itself than doing, for example, a theoretical doctorial thesis to graduate from the program. Not sure, though, I read a little bit about it a long time ago.
I think therapists with any degree can be terrible, great, and everything in between, so I don't think the degree matters much, per se. That said, I would prefer a therapist who has done his/her own therapy and a lot of it (i.e. not just 6 sessions of CBT or something like that, not that it has to be hugely in-depth, but relatively long-term, really getting into their issues, etc. so they can recognize and control them well enough to not allow them to interfere with the therapy they practice). If a therapist hasn't largely resolved their own issues, then I think they're more likely to project them onto the patient, if someone has poor boundaries and has not worked on that, then they are likely to exhibit this with patients. Granted, having done therapy is no guarantee that someone will be a great therapist either. It's a such a crap shoot, really and unfortunately.
I think, maybe in some states more than others, anyone and their grandmother can hang a shingle and practice therapy, maybe just as long as they don't misrepresent their degrees.
I have a cousin who is a GIGANTIC mess, I mean REALLY, who has recently started a 'life coaching' business. If he manages to sell himself well enough, he may well get clients. Yikes.
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