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

The main difference between a credit card and a charge card is how the debts are paid. With a credit card, the debtor can choose to pay off their debt in full, in part, or with a minimum payment each month. The debtor can also carry a balance, accruing interest, over to the following months. With a charge card, on the other hand, the debtor must pay off the full balance each month. Credit cards are usually issued by banks and are usually connected to a line of credit. The line of credit is the maximum amount of money you can spend on the credit card. Interest is charged on any balances that are not paid in full each month. Charge cards are issued by stores and other businesses. There is usually no set limit on how much a debtor can charge to the card, and no interest is charged on balances that are not paid in full. In New York, the Truth in Lending Act requires that lenders inform customers of the terms of their credit agreements, including interest rates and fees associated with a credit card. This law also protects consumers from deceptive or unfair credit practices. In summary, the main differences between a credit card and a charge card are the terms of payment and the type of lender issuing the card. Credit cards involve monthly payments and often have a line of credit attached, while charge cards require the full payment to be made each month. In both cases, the Truth in Lending Act protects consumers from deceptive or unfair credit practices.

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

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