13/10/2021
Many people see the terms “charge card” and “credit card” and just assume they are both the same but in reality they aren't. You can use a charge card and a credit card to make a purchase similarly, but the differences come when it is time to payoff the bill. There are key differences between the two, and you may want to compare the two types of cards before deciding which is a better fit for you.
The 3 major differences between credit cards and charge cards:
1. Charge cards don’t have a preset spending limit. I.e no credit limit.
2. You must pay a charge card’s bill in full each month or risk account cancellation.
3. With credit cards, you can avoid late payment fees by making a minimum payment on your balance. This is not an option for charge cards.
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