Difference Between Charge Cards Vs Credit Cards

I’m sure that a good sum of you BCS readers out there already have some sort of knowledge between the confines of what exactly is a credit card compared to a charge card. To me, a charge card is a worlds apart from a credit card, especially when it comes to functionality. Such extremes in the spectrum of card issued products can be found right on this post! So be sure to read on if you’re interested.

Alternative Credit Card Bonuses:

• Chase Ink Business Preferred^SM Card
• Starwood Preferred Guest® Credit Card
• Chase Sapphire Preferred® Card

Difference Between Charge Cards Vs Credit Cards Summary:

Charge Cards:

We’re going to start it off with a Charge cards. This includes the all-premium Platinum Card® from American Express with a hefty $550 annual fee, compromised with exceptionally, top-market rewards and benefits. Charge cards typically have this allure of 0% interest rates making it an easy misconception to make larger purchases that could be budgeted out like a credit card.

Well again, a charge card is yet another spectrum of credit cards and if you fail to pay off the balance within a given billing cycle, you will be charged a late fee. These late fees do get rather pricey, initially starting out at $27; If you assess another late fee within the following six credit card statements, your fee will bounce to $38. If two payments are late in a row, you should expect an attached $38 late fee or 2.99% of the amount due.

Credit Cards:

Credit Cards, like the Chase Freedom Unlimited^® typically come with an impeccable 0% Introductory APR length making for a viable option for those looking to budget for their financial lifestyle or financial well-being. Once the card is off the Intro APR period, you are handed a standard APR based on credit worthiness. Racking up spending on credit cards is also not a safe way to go about either because once with the introductory APR is up and you still haven’t payed the balance off yet, you can see some pretty hefty fines coming your way. I would say that either way, if you plan on getting a charge card or credit card, there will still be repercussions if you don’t pay your bills on time.

Conclusion:

Whether you’re in the market for a charge card from American Express or a credit card elsewhere, it’s completely necessary that you know what you’re getting into. Some advice for those looking into charge cards; pay your bills on time. That means if you charged $500+ at the grocery store, in one statement cycle, you should and have to pay the whole balance, otherwise, you’ll receive late fees and that’s not to positive considering we’re in it for the rewards right? As always, don’t forget to check out our complete list of Credit Card Promotions today!