What is the difference between a credit card and a charge card?

A credit card and a charge card are both payment cards that allow individuals to borrow money or access credit in order to purchase items. However, there are some significant differences between the two. A credit card allows an individual to borrow money from a lender, typically a bank or credit union, and pay it back over time. The borrower is usually required to make minimum payments each month. Additionally, interest may be charged if the full balance is not paid off by the due date. In contrast, a charge card does not allow borrowing. Instead, the individual pays for the item in full at the time of purchase. Many charge cards will offer a grace period before payment is due, but there is no interest charged if the balance is not paid in full by the due date. In Indiana, there is currently no specific credit card law, although state law does regulate certain aspects of charge card usage such as disclosure requirements and consumer protection. Additionally, the federal Truth in Lending Act regulates credit and charge card terms and conditions.

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What is the difference between a credit card and a charge card?

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