The first thing we should clear up in this discussion is the fact that there's no such thing as a "prepaid credit card".  It simply doesn't exist.   If anyone references a prepaid credit card in a conversation with you, what they actually mean is a "prepaid debit card". The terms unfortunately get mixed up all the time, even though "debit" and "credit" mean very different things, but the fact is all of these cards are debit cards.  So now that we've got that confusing point cleared up, let's move onto how these prepaid debit cards work and how they affect your credit scores. Prepaid debit cards are actually quite simple financial products.  They basically work just like a debit card that's linked to your personal checking account, only there's no checking account to worry about.

Credit card companies that issue bad credit credit cards have been getting a lot of bad press over the past few years. Extremely high interest rates coupled with higher fees than your average credit card make them an easy target for those that believe these products are "evil" and should either be done away with for good or regulated even more than they already are. While credit cards for bad credit certainly have higher interest rates and fees than most consumer credit cards, the reality is that they actually provide a much-needed service for millions of Americans trying to rebuild their credit. Without them, a huge market of consumers would be left underserved.   But why do the interest rates and fees have to be so darn high?  It's not rocket science— the answer is quite simple to understand.

Dear Creditnet: I have good credit scores and plan to apply for a new cash back credit card sometime this month. I've already chosen the card I want, but how can I get a feel for what kind of credit limit I'll receive? I'm worried about canceling my old card if my new credit limit won't be high enough to support my regular spending habits. So is there any way to find out what credit limit I'll get beforehand, or is it always a shot in the dark?