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Added July 5, 2010 from: Mike Killian
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 Mike Killian
Answered By Mike Killian:
The phrase "charge card" is often used as a generic term and could be a credit card. However, in its strictest sense, it is a card that is used with full payment of the balance expected upon receipt of the statement. It is paid off each month, and as a result, there is no interest charged.

A credit card, on the other hand, is revolving credit on which you make payments. There is an interest charge if the balance is not paid off in full each month. That is chiefly what differentiates it from a charge card. You can carry a balance with a credit card: you cannot carry a balance with a charge card.

Your question also asked about which is better. That is determined by how the card will be used. If it is for a long-term extension of credit on a large purchase, then a credit card is better.

There is one final point. A charge card is usually for a selected store or industry. A credit card is a bit more universal.  However, American Express offers several charge cards.

This question is about:  Charge Cards
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