Credit Tips: What is the difference in a charge card and a credit card?

Written by carnold
Posted On: January 1, 2005

Author: newbie2
Guest
Posted: Sat Jul 10, 2004 12:58 am
Post subject: What’s charge card?

Sorry if this sounds dumb, but what’s the difference between a charge card and credit card? i.e. Amex blue and amex green?

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Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 361
Posted: Sat Jul 10, 2004 10:47 am

Google has a wonderful way to find out such info. Go to Google google.com and type in define: charge card It will then display a whole bunch of definitions drawn from many sources. Here are just the first of them. (Same search method works to define any word or phrase!) A charge card works in a similar way to a credit card and allows its holder to pay for goods and services on credit. The main difference from a credit card is that the balance on a charge card has to be paid off in full each month. Cardholders are rewarded for using the charge card with points schemes, airmiles and discount offers on services such as insurance. The two largest charge card issuers are American Express and Diners Club International. Some high street banks issue charge cards to their current account customers. ccrg.org.uk/glossary_c.html A card that requires a full payment of the entire accrued balance by the due date. Unlike credit cards, which give borrowers a revolving line of credit and let them carry a balance at a predetermined interest rate, charge cards generally do not allow a cardholder to carry a balance and do not charge interest. American Express and Diner’s Club are examples of charge cards. acclaimsecuredcards.com/help/glossary.html A payment card with invoices, usually monthly, that must be paid in full when received. Charge cards typically have an annual fee but no monthly interest charges because balances are due upon receipt. Also known as “convenience” cards. home3.americanexpress.com/corp/doj/case/glossary1.shtml A card that requires a full payment of the charge by the due date. Unlike credit cards, which give borrowers a revolving line of credit and lets them borrow against it, carrying a balance with an agreed-to interest rate, charge cards do not allow carrying a balance and no interest is charged. American Express and Diner’s Club are examples of charge cards. cctransact.com/FAQ/Glossary.htm a payment card that requires the total bill to be paid by a specific date. You are not allowed to carry an account balance from one month to the next and no interest is charged. products.xelector.com/unravelit/LoansResources/PAGE_glossary.html —A card used to buy goods and services from the issuing merchant on credit. Payment is usually due in 30 days. consumer-guide-credit.com/fix-your-credit/glossary/index.cfm A payment card, the terms of which include the obligation to settle the account in full at the end of a specified period. chipandpin.co.uk/glossary/

Polonius
“Neither a borrower, nor a lender be; For loan oft loses both itself and friend”

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Author: Board Monitor
BOARD MONITOR-ADMINISTRATOR
Joined: 05 May 2003
Posts: 434
Posted: Sun Jul 11, 2004 7:47 am

Also, we have a comprehensive glossary related to credit card terms here: www.cardratings.com/creditcardglossary.html

Hope this helps!

Best Regards,
Curtis Arnold
Board Monitor
U.S. Citizens for Fair Credit Card Terms, Inc.
http://www.cardratings.com
501-663-0314 PH 501-301-8474 FX

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