What's the Difference between a Charge Card and Credit Card?

Many people believe that the charge card and the credit card are the same exact thing. While they are very similar, there are a few key differences between these 2 types of purchasing methods. Here are a few of the differences between a charge card and a credit card.


One of the biggest differences between a charge card in a credit card is in how you carry balances. With the charge card, any balances that you accumulate will have to be paid off by your next monthly statement. This gives you 30 days in order to utilize credit from the charge card company. With a credit card, you will be able to accumulate large balances and leave them on your credit card for an extended period of time. You will only have to make a minimum monthly payment to address part of the interest that is occurring on your account with the credit card.

Credit Score

The credit card can have a much more negative impact on your credit than a charge card can. With credit cards, many individuals choose not to make their payments because they cannot afford them. When this happens, the credit card company will charge off the debt and it will seriously impact your credit. With the charge card, you will have to pay off your balance every month which will actually benefit your credit.

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