what is the basic diffrence between charge card and credit card? which is batter?

Question

if both card have same credit limit or unlimted credit limit then what will be batter choice and why? which one i choose?

Answer 1

A credit card give you credit. That means that you do not have to pay your bills fully and you can carry a balance. You will be charged an interest on the balance that you carry. This is one of the ways that credit card companies make money.

A charge card on the other hand, requires that you pay your bills in full. That means that you cannot carry a balance. The most famous charge card is the American Express Rewards Gold Card.

Charge cards have an annual fee because the issuers cannot make money from cardholders carrying a balance.

Should you get a charge card or credit card. Well, if you need credit and carry a balance occasionally, getting a credit card makes sense as most do not have annual fees. Though a charge card has annual fees and does not allow you to carry a balance, they have very good reward programs. For example, the Membership Rewards from American Express and Diners Club Rewards are perhaps the best reward programs around.

Answer 2

Charge and credit cards are the same.

There are however many different types of cards.

Credit or charge: revolving = borrow and pay back

Debit or secured or loaded value: a savings account of some type = you only spend what you deposit or sometimes the amount you deposit matches with a higher amount.

Catalog cards: only use when buying from a specific catolog or merchant.


There are many other types of cards.


Here is a article that explains them all in detail: http://www.expert-credit-advice.com/credit_card_expert.htm


BTW: no credit card has an unlimited limit except American Express Black and even that has limits to a degree...


If you want a secured card that will help build your credit, Bank First has a good one: http://www.goeufora.com/418121496892
Just remember it is a loaded value card, you muct put money on it in order to be able to spend it. If you are not intrested in building credit, dont bother getting it.

Finally, looking back at your question again, many people refer to "charge cards" as ONLY department store cards, which may be where some confusion set in.....

Answer 3

A charge card (i assume you mean debit card) takes the money from your bank account as soon as you use the card. With a credit card, you have a bill you pay by writing a check for the total amount (usually monthly). Some debit cards now can be used like a credit card. Instead of punching in your 4 digit pin after using it, you can sign for the purchase just like you would for a credit card purchase. However, when used as a credit the amount spent is deducted about 1 day after it is spent.

Answer 4

Under given conditions, go for the credit card and ensure that all charges under credit card is paid in full on due date and there is no roll over. There is a possibility that you may earn interest on the amount spent and also you may get the rewards for using your credit card.

Answer 5

I think it's just a language thing.

Maybe you mean debit card and credit card.

Debit cards draw money from your bank account.

Credit cards are lending you the money which you can pay back in installments with interest (usually high interest),

Answer 6

Charge Card is that you pay, get the card charged & then use it.
Credit Card is that you use & pay