Key Differences
The major difference between a charge card and a credit card is that a charge card must be paid in full at the end of each billing cycle, whereas a credit card allows you to carry a balance and requires only the minimum payment (though you will incur interest on any unpaid balance).
Credit Cards
A credit card allows you to borrow money to make purchases and carry a balance on your credit card, paying back the borrowed money over time. However, carrying a balance on your credit card can lead to high-interest charges, and some credit cards come with an annual fee.
Charge Cards
Like a credit card, a charge card allows you to borrow money to make purchases. Unlike credit cards, charge cards do not have a preset spending limit and must be paid off in full every month. Some charge cards come with perks similar to those of credit cards.
Considerations for Getting a Card
Whether charge cards are right for you depends on your individual circumstances, credit needs, and most importantly, your ability to pay off your balance consistently each billing cycle. Some charge cards offer perks, just like credit cards.
Impact on Credit Score
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