Credit Cards Vs. Charge Cards - CREDIT CARDS
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CREDIT CARDS: Credit Cards vs. Charge Cards
Many people use the two terms interchangeably, but there are important differences. In general, a credit card permits you to make purchases for which you are billed later. Most credit card accounts permit you to carry a balance from one billing cycle to the next, though you have to pay interest on that balance. Usually, you have to pay at least a certain amount of your balance each time you receive a bill. A charge card is a specific kind of credit card. The balance on a charge card account is payable in full when the statement is received and cannot be rolled over from one billing cycle to the next. Because you cannot carry a balance, a charge card doesn’t involve any periodic or annual percentage rate, so there is no rate for a card issuer to disclose.
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